Jagoinvestor Book with CNBC – Network 18

I am happy to break the news today about my first upcoming book on personal finance called “Jago Investor” (The name of the book is changed now and its now called 16 Personal Finance Principles Every Investor Should Know) with CNBC Network 18. It has been a long time I was waiting for this to be out in the market, but finally I got a go ahead to break the news to my blog readers. No, the book is not in talks – It’s going to hit the market (soon) this month itself. So you just have to wait for couple of more days to grab your copy.


Jagoinvestor book


16 personal finance principles every investor should know  Financial Planning Book in India - Personal Finance Book in India
Pre order Book

Some time in early 2010

I got a mail from CNBC sometime in 2010 about authoring a book on personal finance and I happily agreed. Since then I worked on the book, I was in Bangalore that time working with YAHOO (yea guys – I was an IT guy) and then I moved to Pune to start on my own. I worked on the book in last 1.5 yrs and now it’s complete.

The Vision of Jagoinvestor Book

It was a tough task to select what the book should be all about – but I was sure that it should not be a typical book . It should not be a book which does not leave an impact on someone who reads it. I wanted to make sure that a person who reads the book really introspects about his financial life. I wanted the book to make a person shake a bit after reading it. So the book had to awake a person reading it and make him feel “Now, I should do something for my financial life”. With that vision I have written the book. It’s about the principles of personal finance and how a person should think in different areas of financial life. I will it becomes one of the best personal finance book in India.

The book is not about financial products and how they work – NO! You can get it anywhere. I have talked about very important things which really matter. It works on your thinking level and makes you think in a more quality way rather than just increasing your knowledge. I have tried my best to keep the language simple along with numerous examples and images/tables to convey the concept. I have written this book considering myself as the reader. There is another version of this book which comes with a CD which contains 13 financial calculators and 2-3 templates.

Buy the Book (Click Here)

Book Chapters

Now let me introduce you to the book contents in crisp and short points.

Chapter 1 This chapter talks about early investing and how you lose a lot of wealth just because you don’t start your wealth creation on time. I have shown numerous examples/graphs which will give a clear idea on how powerful early investing can be.
Chapter 2 The second chapter talks about the protection of your family (Life Insurance). It also shows you right way of finding the required cover and how much your current cover will be able to sustain your loved ones. While this might look like “products talk” It’s actually not!.
Chapter 3 The 3rd chapter is all about Goals setting and how your should look at it . How goal based/linked investing can do better for you and improve your financial life style.
Chapter 4 This chapter clears the myth people have about equity and debt in general. It shows you reasoning/proof about how equity is not risky in long-term and how debt is extremely risky in long-term.
Chapter 5 This chapter talks mostly on the psychological aspects of your financial thinking and how your decisions are shaped up because of the way you think about money. This chapter has been contributed mostly by Nandish and he has really done amazing work.
Chapter 6 This chapter talks about how you can make your financial life more simple and robust using some simple rearrangements. This is mostly overlooked by indian investors who focus a lot on returns only.
Chapter 7 This chapter ends the book and it talks about 10 commandants you should incorporate in your financial life to make sure you become a better investor.

Thanks to you

If I had to thank only one person who made this book a success, it would be you. From past 4 yrs you have bombarded me with your doubts/questions and this has only made me learn and learn. This book does not belong to me alone its creation of this whole community and each one of you who is part of this blog from several years now. It did not take shape just in a day – it happened over years – slowly and gradually. I would like to say Thanks to you all for believing in jagoinvestor and really making it happen. We have a lot of things coming up in 2012 and our commitment is to give you guys more and more with each passing day.

The biggest financial advice – Saying NO

“No” is one of the non-complicated word – Simply two letters. Yet saying “No” out loud is hard for most people. Welcome to the world of personal finance where saying NO is tough and 90% of the people reading this blog might have a messed up financial life because of a single reason that they didn’t say NO to a lot of things. Let’s start with my favourite ‘Life Insurance’. Almost everyone I have interacted with, had/have a sad story of some uncle selling him (wait wait …. the correct word is ‘forced him’) to buy a life insurance plan because he had to complete his target or his job was at danger or because he was trying to sell life time product. Saying ‘NO’ was not an option because ‘it won’t look good’ (I am sure it looks amazing right now).

“Yaar – Can you help my brother as he needs a car loan. Can you guarantee his loan, they want someone from the city itself and could you just give your PAN Card to my brother? As it is part of the procedure, kuch hota wota nahi hai ” . You can’t say NO. Months and years pass on … Friend’s brother loses job, can’t pay the EMI and obviously you are the defaulter now! Your home loan, car loan, credit card all kind of applications are getting Rejected. Either live with this situation or pay the balance Rs 4 lacs. This is the cost of avoiding a NO.

Saying No in Personal Finance

Are equity markets risky for you? And you want a equity + insurance product bundled which gives tax benefit and also gives benefit of rebalancing on its own, but you want guaranteed returns? Welcome to the world of “Highest NAV products“. Now you get highest NAV (but we will decide how the highest NAV is controlled… he ha he).

Wait… but it would be amazing if I can buy at the lowest NAV product. Arre no problem sir, jaan bhi haazir hai. Just close your eyes give me 10 min… zoom! Lowest NAV ULIP is here! Anything else? Now please don’t say NO. We did whatever you wanted, please be kind and don’t be so rude, please write a cheque. What? I can’t invest lot of money in one go… Ok then, we have a monthly investment option available. We can try every weekly too if you want.

Inventions in SIP and Insurance

There are “inventions” in SIP … SIP in Stocks (It does not work, think why) , weekly SIPs, daily SIPs, minute SIPs… we will extract the rupee cost averaging concept… Normal SIP, Flexible SIP, increasing SIP, decreasing SIP – They can read your mind.

People were scared of ‘Term Insurance plan’ about it not giving back the money paid as premiums – so let’s introduce Return of Premium Term insurance plan, now no one can say ‘NO’! We are giving insurance money if you die and your premiums back incase you live for the term of the insurance… what else you will want to say YES? Please be human and take it. I hope you are getting what I am trying to say – The more options we have, the more we believe that we need it. You need to learn to control your decisions and say ‘NO’ to most of the things. There are minimal options which you need and keep things extremely simple.

There is no reason in this whole world to have 10 insurance policies. There is no reason to have 15+ mutual funds in your portfolio. There is no reason to have try to beat the markets with direct stocks if you don’t know the rules of the game in equity markets or you are trying to learn the game of equities or have a past record of beating mutual funds or even index returns. There is no reason to have different kind of policies. There is absolutely no reason to own more than 2 credit cards.

There is no reason to have more than 2-3 Health Insurance products & overall there is no need to have savings account in so many banks unless you have extra cash to pay for the bank charges. However almost every portfolio we come across, we how there are many area’s where investors went shopping with craze at some point of their financial life . I have seen 45 insurance policies (yes , LIC policies) , 100 Mutual Funds in a portfolio (I really suspect the guy thought they are SHARES) , 12 health insurance plans , 8 credit cards with a close friend, and one of my relative with 7-10 bank accounts (with that attitude of “arre Rs 500 pada hai account me , rehne do, ja hi kya raha hai)

So what you need to do?

If you want a fairly simple financial life, all you need to have is:

  • 4-5 good equity diversified mutual funds or balanced funds
  • 1-2 term plan
  • 1 health insurance product
  • 1 credit card
  • 1-2 bank accounts
  • Financial Discipline to say ‘NO’ to what you don’t need

We said No at wrong places

Now just like we didn’t say No at wrong places, we have said NO many times at right places. When we met an agent who was not ready to share his commissions in exchange of authentic and right advice, we said NO, we don’t want you. When we meet an advisor who didn’t give us discount on his fees but was a high quality advisor, we said NO, we won’t need people like you. When we wanted to go to a workshop or seminar on finance & money and we came to know that its PAID seminar, we said – Kya faaida – NO we don’t want to come. 

I want to take this message very strongly in 2012 start and follow it though out your life – You don’t need to do a lot of advanced things in your financial life, provided you do not make a lot of mistakes and are ready to keep things simple and an attitude to say NO to fancy and complicated things in life . Thais the conclusion of this article. Also I am going to break a very good and big news to all readers in few days. Any guess ?