CA Niraj Dugar | Holistic Prime Wealth

When you make a buy decision, for example buying a health insurance, always factor in future increase in income in servicing the purchase.

If you’re buying a cover of 1 crore today and are worried that you’ll not able to pay higher premiums in the future, it clearly means you’re not confident about your own income.

This exercise can be applied to a house purchase too. If you like something which is beyond your budget but you can borrow and finance it, a good question to ask is if you’ll be able to service this debt and also be able to meet other financial goals by generating higher incomes in the future.

You can take a step back and assess how can you work towards increasing your income and having a better financial future.

9 hours ago | [YT] | 2

CA Niraj Dugar | Holistic Prime Wealth

Saw a reel with 50k likes that talks about how rich people pay only 2% interest on their 1cr cars.

Here is how it goes -

The rich invest 1 cr in senior citizen fd at 7.5% and then borrow against the fd at 9.5% and pay just 2%.

No wealthy person is this stupid 😂

Here is how you do it -

1. Buy the car in the name of your business

2. Claim interest and depreciation deduction on your taxes

3. Even gst input can be claimed for insurance

4. Invest the funds in better places that earn double digit returns - equities, own business, alternatives

1 day ago | [YT] | 5

CA Niraj Dugar | Holistic Prime Wealth

If you're in your 40s, your top priority should be to see how close are you to meet your retirement goals.

YOU must NOT put yourself in a position where you have to depend on your kids for your retirement funding.

You should not be focused on the following-

1. Buying another house
2. Expensive cars
3. Wanting to fund kids highrr education or destination weddings

You must prioritise RETIREMENT only.

2 days ago | [YT] | 7

CA Niraj Dugar | Holistic Prime Wealth

Personal rate of return is not the return you get on your money. It's the return you get with your time.

Let me explain this with a simple example. You are 24 years old and have planned a holiday. The day before you leave for your holiday, your boss comes up with an urgent assignment and asks you to postpone your holiday. He even offers to pay up to 25% of the costs of your holiday. You would begin considering pushing your holiday and take up your boss's offer. Your personal rate of return seems to be around 10%-25%, net of cancellation costs if any :)

Now, let's assume that you are 80 years old and are planning the same holiday. Someone comes to you to push your holiday for a similar 25% reimbursement. Would you do it? I guess No, since you do not know if you will live to see tomorrow. The probability of living another day only lowers with every passing day. What if they paid 100%? Then? What if you had a terminal illness? Would you push your holiday for a 1000% reimbursement? At such times, your personal rate of return would be infinite.

It's an interesting mental model to evaluate key decisions in your life -

1. Should you continue in your high-paying stressful job for another few years or is it time to call it quits?

2. Should you postpone spending time with your children just to earn some more money?

3. Should you start saving for your retirement today or buy that bigger car?

A good heuristic to evaluate would be to see if the of benefit (personal rate of return) of doing something outweighs the benefits of not doing it.

Periodically stop and assess everything to see if you are running the rat race in the right direction.

3 days ago | [YT] | 8

CA Niraj Dugar | Holistic Prime Wealth

"More than big returns, I want to be financially unbreakable. And if I’m unbreakable I actually think I’ll get the biggest returns, because I’ll be able to stick around long enough for compounding to work wonders." Morgan Housel

How do you make yourself financially unbreakable though?

4 days ago | [YT] | 2

CA Niraj Dugar | Holistic Prime Wealth

Had a discussion with a 50 year old.

Has real estate worth 4 crores. Financial assets under 20 lakhs.

Spends modest amounts for living. Asked me how to reduce expenses further so that he could finance one more real estate.

What’s the point?

If you don’t enjoy now, when will you ever enjoy your money?

Three things become most important here -

1. Have one real estate which will be used to live

2. Create financial assets to fund retirement

3. Enjoy life, It’s short

5 days ago | [YT] | 7

CA Niraj Dugar | Holistic Prime Wealth

Have not invested in IPOs for a long long time now.

Missed out on the adrenaline rush of the listing pop.

Focused on better things -

1. Building the business, 350 plus families strong at
@holisticwealth_


2. YouTube family at 28k subscribers

3. Ran 2 full marathons. Multiple half marathons.

4. Appeared on multiple podcasts

5. Travelled quite a bit

6 days ago | [YT] | 0

CA Niraj Dugar | Holistic Prime Wealth

There is no alternate or arbitrage to good behavior in markets over a long time horizon.

No amount of financial innovation can beat patience.

The biggest advantage of an individual investor is that they dont have to report to a committee.

An individual has the luxury of thinking and acting in decadal time horizon.

1 week ago | [YT] | 2

CA Niraj Dugar | Holistic Prime Wealth

Your biggest enemy in investing is using benchmarks to compare your returns.

A benchmark could be the returns of an index or your neighbor.

The only benchmark that matter are your personal goals.

Is your portfolio helping you meet your goals and ensuring it grows your purchasing power? If yes, then it's not worth it to constantly beat yourself.

"If you want to win against a team with superior talent in sports, you don't try to beat them at their own game. You level the playing field by exploiting their weaknesses and utilizing your strengths."

1 week ago | [YT] | 0

CA Niraj Dugar | Holistic Prime Wealth

Your knowledge of market history, financial products, portfolio construction etc are all meaningless if you can't keep your cool when everyone else is loosing their own mind.

Fear, greed, envy, panic, are all dangerous for your finances.

Personally I have observed that whenever I've held stocks in my portfolio, I've had a constant itch to make a decision. Overtime realised that mutual funds are better vehicles for me. I'm able to invest large amounts and hold them without disturbing my sleep.

1 week ago | [YT] | 1