E031 - The Finance Expert: Your Ultimate Guide For Saving Money In 2024 | Nischa
Feb 4, 2024
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Former investment banker and chartered accountant Nischa shares actionable insights on financial literacy and self-development. Topics covered include increasing income, diversifying income, investing and trading, saving and budgeting, real estate, and common financial mistakes. Nischa also discusses the importance of tracking finances, financial transparency in relationships, and earning money without a degree.
Considering the total cost of ownership is crucial when deciding whether to buy or rent a property.
Budget and long-term needs should be taken into account when deciding whether to buy or lease a car.
Tracking expenses and regularly reviewing finances helps identify areas for improvement and make better financial decisions.
Deep dives
Buying vs. renting property
When deciding whether to buy or rent a property, the general rule is to buy if you plan to live in the property for more than seven years, as the costs associated with buying a property can be offset over a longer period. However, if you plan to live in the property for a shorter period or if you have better investment opportunities, renting may be a better option. It's important to consider the total cost of ownership, including depreciation, fees, and additional expenses, when making a decision.
Buying vs. leasing a car
When deciding whether to buy or lease a car, it's important to consider your budget and long-term needs. Buying a used car that is three to five years old can be a cost-effective option, as it has already depreciated but is still in good condition. Leasing a car allows for a more frequent upgrade, but it comes with additional costs and restrictions. Ultimately, the decision depends on your financial situation and preferences.
Tracking expenses and financial management
Tracking expenses and managing your finances is crucial for maintaining control over your spending and ensuring financial stability. It's recommended to track expenses monthly, as it allows you to have a clear understanding of your income and expenses. There are various apps and methods available to track your finances, such as budgeting apps and spreadsheet templates. Regularly reviewing and analyzing your expenses helps you identify areas where you can cut back and make better financial decisions.
Skills that improve earning potential without a degree
While a degree can be beneficial, there are skills that can improve your earning potential even without one. Negotiation skills are valuable in various aspects of life, including work, relationships, and personal finances. Learning the art of selling helps you understand consumer psychology and effectively convince people to buy or invest in something. Embracing technology and social media can also open up opportunities for making money and building a personal brand. It's important to adapt and stay open-minded about new opportunities that come with the evolving world.
The Importance of Tracking Finances
Tracking finances is essential for understanding spending habits and making informed financial decisions. Just like tracking calories helps people understand their eating habits, tracking finances allows individuals to recognize overspending, debt, and areas for improvement. By taking the time to lay out income, expenses, savings, and investments, individuals gain a clearer picture of their financial situation and can make necessary adjustments to achieve their financial goals.
The Impact of Job Changes on Income
Staying at the same job for an extended period can result in missed opportunities for higher salaries. Studies show that people who stay with the same company for more than two years tend to make 50% less over their lifetime compared to those who switch jobs. Moving to different companies allows individuals to negotiate higher pay and receive larger pay raises compared to staying at one company. While some may value job security and work-life balance, it is crucial to assess whether staying at one job aligns with financial goals and potential earnings.
Nischa is a former investment banker and chartered accountant with a decade long career in finance, including working at one of the world’s largest investment banks. Her mission is simple, to help people take control of their finances and improve their lives as a result by providing “easy, actionable lessons on financial literacy and self development”. With close to a million followers on YouTube, Nischa offers actionable insights on financial smarts such as investing, tax and saving. Tune in...
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