Personal Finance Simplified in Terms of Journey

Normally, most of the times, we are working in a different City & our Parents/Family stay at different Place. Hence we have to travel to meet them.

Same thing, I felt over years & years travelling from Hyderabad to Delhi. I can travel from Source to Destination, by different modes of Transport, ranging from Train, Flight or by Road. The time, thus required to reach the final destination, would then depend on which mode of travel, we choose.

In a similar but simple fashion, I would try to throw some light on managing our own Money. Source & Destination would vary from person to person & hence it is Personal Journey or Finance.

Hence , we can derive an analogy between the two.

Personal Journey                                                                     Personal Finance

Source:                 Hyderabad                                         Initial Capital for Investment  (P=Principal)

Destination:            Delhi                                               Linked Goal to our Investment (Kid’s Education, Kid’s                                                                                                                       Marriage, Home Loan/Car Loan Down-payment)                                                                                                                                                   (A=Amount)

Mode of Transport:     Train, Flight, Road                 Stocks, MF, PPF, RD, FD, Gold, Real Estate

Time Taken:               Depends on Mode of Transport                    Depends on Investment Vehicle chosen from above                                                                                                                                           (T=Time)

ROI (Speed (KM/H))       Flight>Train>Bus                   Stocks/MF>RE>PPF,RD,FD>Gold (R=Rate of Return)

Finally, we land up to a very Basic Mathematical Eqn, read in our Primary Classes

A=P*(1+R)^T

Hope this post, gives us fodder for thought & we can correlate our day to day money matters & understand them in a simplified manner.

Feel free to share your feedback & do let me know the Topics on which you want more clarity.