Money Basics
When I think of Money it gives me a sense of confidence and pride knowing how to handle it and use it to my advantage. But it wasn't always the case. When I first started earning at age 22 , I relied on my father to guide me make decisions about my money.
I was making about $200 per month working as a software engineer from 2001 thru 2003. This was back in India. That was lot of money for college freshman especially because I still lived with my parents.
In 2003, I moved to USA for work and started making around $36K per year before taxes. This was a huge bump from my previous pay but I was now also paying for my rent, groceries, car, gas and utilities.
I had always been careful with money but the only option I knew of was saving specific amount in bank each month. That was 100% it.
I had opened checking and saving account with a credit union in Schenectady , New York right in my work campus.
Checking account I used for day to day expenses and dedicated amount went to my saving account. I thought I was doing real good and being very wise with my money.
Not that this was a bad approach for someone who had just moved to different country and learning to live on her own but I never took effort nor did I become curious about any financial benefits my employer might be offering (401K).
I only got health insurance because it was mandated as part of my employment work status (H1B) and was automatically enrolled in.
Fast forward 1.5 year, I married and moved out of state but still working from home for same employer.
Now I relied on my husband to make financial decisions for me. I was very conservative and extremely risk adverse. Terms like stock market, taking mortgage for house sounded too risky.
I was raised with mindset to buy house outright rather than take loans. It is easier to do that in India where kids normally live with their parents until they had enough to buy or rent on own.
I did what I knew! Everyone does what they know! Hence it is so important to make effort to know more each day.
I didn't really understand clear difference between investing and saving. I thought if I religiously saved certain amount each month, I was investing in my future.
I didn't even truly know what terms like assets, liabilities, leverage meant in financial terms.
Sometimes I think back and wonder, was this because of lack of financial education when I grew up or was the reason something else.
After 22 years of reflection, I have come to realize it was combination of multiple things -
Schools never provided financial education , at least not when I was in school in 90s. I wish schools start making finance/balance sheet/income-expense statement as part of curriculum. Give each child tools to succeed in adulthood.
My dad was professional and very attuned to what's going on in market. He is a savvy investor and really wise man. My mom was a housewife but extremely bright when it came to finances as well.
Both of them instilled great values in me and my siblings. That I think is core reason why I have always been careful with my money.
Kids learn good deal about finances from parents , guardians, caregivers hence having right role model is very important to set right foundation.
Lastly but most important is 'ones desire to learn' and pushing thru no matter how overwhelming.
I depended on my father and husband to make choices for me or I relied on my conservative mindset to carry me month after month without getting into debt or gambling my money away in stocks or other 'risky' investment.
I decided to start this blog to share my experience from last 22 years and how I got to a point where I feel confident enough to make savvy financial decisions. I have become much more aggressive with my investment , save more prudently, and also diversified my finance portfolio,
Also know, I started really getting interested in learning and paying attention to finances in 2017 and got really really interested during Covid-19 Pandemic in 2020/2021.
I am proud of what I have been able to accomplish and can't wait to see where this journey takes me.
-FVG