I have talked about my income sources before and if you haven’t read about from where I do earn my living bread then go ahead and read this My 6 Active & Passive Income Sources. However, I didn’t talk much about how much I save my money and more importantly, where do I invest my money.
I know, many people are aware that I invest a lot of my money in the Stock Market and Real Estate but that’s not all the investments in my portfolio.
I do invest my money elsewhere as well apart from the Stock Market and Real Estate and in this article, I will share all the investments I have in my real life.
Now, first thing is first is that I do save around 60-70% of my income easily. I have shared some of my money saving strategies in the post 7 ways to Save Money without living a Frugal Life.
Out of the 60-70% money saving, I invest almost 80% of my savings to obtain more assets every month. I must also admit that the first thing I invested in my life was in my emergency funds.
Emergency Funds Saving Strategy.
Before I get started, I must tell that this step is most important before you start investing money or before starting a new startup business.
In my emergency funds, I have two categories. First, I do have emergency funds for medical purpose and second, I do have emergency funds for groceries for next 12 months.
The reason why I do this is because even if my business or investments fail then also I am assured that I can get by for the next 12 months which is more than enough for me to create a new business and succeed once again.
I suggest all my viewers to have these kind of emergency funds as well. First is for your medical emergencies and second is for your home security. Whatever your grocery expense is every month, multiply it by 12, save that much money first and keep it in a different account. Now, moving on to my investment portfolio.
My Top 6 Investments
#1: Real Estate
Almost 60% of my money is invested in Real Estate. I have two rental properties from where I receive around Rs 20,500 every month after Taxes. However, people often suggest that when you are young you should take more risk rather than playing safely.
But I do not agree with that. I do believe a person should invest in assets that they truly understand. I mean, if you understand a business then go ahead and invest in that first. In the mean time, you can always learn about new business and opportunities in the side.
I am happy to say that Real Estate investment is something in my blood, I do find good opportunities and I like to buy apartments in my neighborhood. I love New Delhi, India and I am super familiar with this entire city.
#2: Stock Market
The second most money I put is in my Stock Market Portfolio. Around 30% of my savings are invested in the share market. However, if you have spent some time in this blog then you may also know that I am a fan of Dividend Investment.
The strategy is simple, keep growing your stock portfolio and enjoy the dividend income. One of the best passive income I have came across with.
I won’t lie to you, I tried intraday trading for a short amount of time, but the amount of anxiety and worries was not worth it. Additionally, I do have a day job, so I can’t afford all the time in this field.
I do like to research companies and I like to invest in them with a plan to hold on to them for long term. I have particular reasons for choosing a company and unless & until those conditions changes, I wouldn’t take an exit from them.
You can check out My Entire Stock Market Portfolio and see how much Dividend Income I have right now.
I do plan to invest at least Rs 5 Crore in the stock market and expect to receive at least Rs 10 lakh Dividend every year from this. It is possible to live off with Dividend Income in India, I certainly do believe that. But we are going to find it out together.
#3: Commodities – Gold & Silver
The reason why I invest in Gold and Silver is because I do have a good knowledge about this field. My father was both silver smith and gold smith, so we used to talk about these two metals a lot in our family.
I used to hold the gold bars in my hand all the time when my father brought them in our home. I liked the feeling of holding gold bars.
Gold is historically more reliable than silver. But according to our young age, I do believe we can take more risk but still, I invest a little portion of my money in these two metals.
However, I do not buy gold or silver jewelry but rather buy the pure metal. It’s easy to get the pure metal in our state. Obviously, you don’t want to hide them in your home but rather just get a locker in a safe bank.
One of the reasons, I dislike buying gold is that it doesn’t generate any cash flow for me. I mean yes, I do have some gold and silver but they are just lying in a safe locker in the bank. That’s all.
Over time, the price is increasing but I certainly do not have any intention on selling them at all. But, still I do like it as an investment and will see how long I do hold them. They certainly helps you to beat inflation.
Eventually, I will sell them if I run short in cash when buying more shares or real estate.
Gold and Silver only weighs 5% of my money in my investment portfolio. Out of that, around 70% money is invested in Gold and 30% in Silver.
And, also I am sitting on a good profit as I have bought them many months ago in the range of Rs 33,000 per 10 gram.
#4: Crypto currencies
I invested around Rs 1.5 lakh in Crypto Currencies. I know, this could be a bad investment but to be honest, I really do not care much about this investment.
Just like Gold & Silver, all I had to do is buy some and leave them in the hardware wallets. I know owning crypto currencies could be very risky but I do believe, not owning them is even more risky.
Crypto currencies do not make a significant amount of change in my investment portfolio but yes, I do invest in it.
Currently, I am investing around Rs 15,000 to Rs 20,000 every month. And just FYI, I am only putting disposable money in crypto currencies.
Nobody can say how things will turn for crypto currencies in the coming 10 years. But either it will be a big boom or a big burst. Trade lightly if you are a crypto investor.
#5: Mutual Funds
You might be thinking, why am I investing in mutual funds if I am already investing in the Stock Market? Well again, it’s not somewhere I am actively investing but rather I have a SIP of Rs 5,000 every month.
Again, I treat mutual funds as a retirement safety deposit box or “Gullak” as they say in Hindi. The math is very clear. If I keep on investing Rs 5,000 every month for the next 32 years when I turn 60 years old then my mutual funds account will have around Rs 1.2 Crore which I do believe is a good amount of money even after 32 years old.
And if you notice, I am only considering a 10% return but historically it’s much more than that. It’s an investment that I do not look over a lot because someone else is already taking care for it but yes, it’s fun to see every year if I could beat their return percentage with my own stock investing or not.
#6: Banking Investments
This is one of the WORST INVESTMENTS in the history of investments. But, as usual, due to some stupidity of my own, I have fallen into the trap.
Two years ago, one of the bankers insisted me to invest with the bank and said we could get you a lot of return and so on and so on. Very skilled salesman, I would say.
I was financially illiterate back then and accepted his offer. I will not lie but I bought it to avail the 80C tax benefits too. But, after getting some financial knowledge, I read the papers again very thoroughly and saw that it’s a horrible investment.
The condition is I will have to invest Rs 100,000 every year for the next 15 years and they will give me 18 Lac after the investment period is over. The investment return is peanuts here.
Even if I invest Rs 8,500 for the next 15 years in a bad mutual funds with only a mere 8% return then also I will get Rs 29 lakh after 15 years. And if I invest them personally in the share market then I guess I will get more dividend income than the banking return.
Again, I will not blame the banker but I would rather blame myself for this. I want to close this as soon as possible but when I called my bank they said you will have to pay at least 3 years or the amount will come down to ZERO and you will receive nothing. WOW!!
Two years are gone and I have already paid twice, just one more year to go and I will stop this investment and will try to cash out as soon as possible.
Horrible Experience but yes, I took my lessons from here and that’s something you guys could learn as well.
DO NOT BLINDLY INVEST WITH BANKS. Read the papers again and again, compare the returns, find some experts and take their suggestions.
Anyways, hopefully, you guys found this article useful and may be you have got some ideas where to invest or not. If you have any queries then feel free to comment down below and I will try to reply all of you!