The 10 commandants of Financial life

It is Christmas season and my thoughts invariably turn to the Bible at this time. I have always found it to be a treasure trove of wisdom and the ten commandants are a perfect example. They are all great principles for human beings to lead a good life, it is a pity that they are not understood well and followed even less.

Over the many years of my financial journey, I have learnt a lot from many persons and situations that have helped me to frame my own set of 10 commandants that can be a definite guide in our financial life. I cannot claim that I have always been able to follow these meticulously but when I have, their value has been very clearly demonstrated to me.

I thought it will be a good idea to share my set of 10 commandants with the readers in this festive season, so here they are:-

  1. You must always strive to build up your capability / skills, so that you are able to maximize your earning capacity.
  2. Have a clear understanding of how you are earning, spending and investing money in terms of the present and future.
  3. While trying to maximize your current active income through your skills and expertise, you will look to set up a passive income stream.
  4. Your only real financial goal should be to achieve financial freedom, irrespective of whether you seek early retirement or not.
  5. Your first priority must always be to live your present life well, the next to protect your future through insurance and the third to invest wisely for the future.
  6. While procuring assets you must be clear that you can afford the same. In general, try to avoid loans as much as practicable. Even in cases where you need to take loans, pay it back as soon as you can.
  7. Do not get obsessed about investments from an early stage in life. You will find it is much simpler to invest increasingly larger amounts as you progress through life. Enjoy your present, it will not come back.
  8. If faced with conflicting choices on usage of money, follow the Suze Orman dictum: People first, then money, then things.
  9. Never put constraints on what you really want to do because of money issues. If you like traveling or have some other hobby then indulge yourself, within your financial bounds. It is only one life that you have to lead.
  10. If there is a serious mismatch between money availability and the kind of life you want to lead, you must make attempts to rectify things. Do not be scared to take up new challenges, there are many examples of people succeeding in their second or third careers.

I also wanted to share with all my readers that the current post is the 200th one in my blog. When I started 6 months back I did have the goal of building a repository of financial knowledge that will help people who are in need of such information. It has been a wonderful experience so far and I hope to continue in the new year,

Would love to hear from all my readers about their thoughts on my blog.

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9 thoughts on “The 10 commandants of Financial life

  1. Dear Mr.Roy,
    Let me wish you a happy and fulfilling new year.Iam a regular reader of your blog.I have found it highly educative and highly analytical.Pl do continue your good work.
    Regards,
    G.Subramanian

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  2. I like to read your blog like the morning newspaper – if, for some reason, it does not come, then I am in a less-than-happy mood. Keep up the excellent work – there are many nuggets – my most favourite has been the equity-compounding myth.

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  3. Same here. Have regularly followed this blog and liked it. Would love to know more views on point 1. Developing new skills and capabilities to earn more. Didn’t knew about Size Orman, thanks for that.

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  4. Dear Roy
    I am a regular subscriber of your blog and have read through almost all articles.I like the unconventional ,practical and bold way in which you present your articles and also disclosing your personal info in the same.Overall i would recommend your blog to anyone who is interested in personal finance.

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  5. Dear sir, wish you a very happy new year. Have read almost all your blogs and can safely say, your experience and approach has helped me a lot. Few things that you have shared have helped me make correct decisions; like spending on child’s early education, and following passions. Keep writing and stay blessed.

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