3 Freelancers Health and Wealth Tips
Freelancers and gig workers are able to choose the kinds of jobs they want to do. But their income isn’t always stable and can change quickly. To get through times when you have little or no money coming in, you need a good plan.
Eight years ago, Devika Pathak started working as a marketing and content consultant. She likes her job and the fact that she can decide what to do and in what field to work. Pathak also likes that he can make as much money as possible for the amount of work and time he puts in.
Reem Khokhar has a full-time job and has been a freelance writer on the side for a long time. In 2018, she did it full-time for a living. This is not just work for her; she calls it “the most organic form of expression,” which she explores by writing about social, cultural, and lifestyle-based ideas.
Freelance media worker Sonali Chowdhury is most interested in being able to save time and effort by working from home. She can work at her own pace and save energy and time for her seven-year-old daughter and other responsibilities at home.
When it comes to freelancing, it’s all about the freedom the structure gives you, whether it’s creative freedom or the ability to decide how and when work gets done.
Even though there are benefits, freelancers may sometimes need to find that hidden ounce of extra energy to push harder because their income can be unpredictable and irregular, and they don’t get paid leave or medical insurance.
Pathak said, “We could lose a client with as little as two weeks’ notice, which can change a person’s whole income overnight.”
When they first started out, all three of them had trouble getting paid on time, so they had to be picky about the jobs they took. When it comes to money, this also means that you need to put a high priority on your financial health from the start. For a freelancer to stay on top of their financial health, they must work hard and in specific ways on their own finances.
Read our Blog – Debt trap? Methods for debt repayment
Save more at first
When starting out as a freelancer, you should know that money can come in at different times. It can also be risky, which means that you could lose clients at any moment or not get paid for work you did months ago.
Khokhar is a smart saver, which helps her manage her time and money well.
“I could fall back on all the money I saved from my full-time jobs, which helped me a lot in those first two years and also during Covid-19. “Luckily, work didn’t slow down in Covid-19, but I had to change my focus to cover a wider range of topics and push myself to look for international outlets because many domestic ones closed down,” she said.
Freelancers have a lot of freedom, which means they can be creative with their work. However, they also have to be careful with their money and spend less and save more. In the first few years, if you don’t have enough savings, you might even have to get used to the idea of living on less.
At first, it may be easier if you have a working partner or an overdraft from your parents. But don’t make big decisions because you have a lot of money at the start.
“Freelancers need to save money right away, which is easier said than done. In the beginning, a person’s income may be just enough to keep them alive. Srikanth Bhagavat, MD of Hexagon Capital Advisors, said, “The focus should be on forced savings, no matter how much, or at least regular savings.” “Saving money up front is good for the future and can help you out in hard times. In this way, aiming for a retainership can change the equation and make cash flows more predictable.
Avoid expensive loans
Home loans, overdrafts on credit cards, and personal loans are all easy to get and make you feel like you have more freedom in your life. Loans can be both a financial burden and a source of emotional stress if you don’t make enough money to pay them back.
There were hard times for Pathak when she had to ask for money, but lately she has been focusing more on how to handle money better.
“Some months have been very slow, and I’ve had to borrow money from my parents, friends, or partner because I didn’t have any savings. I haven’t been saving very well at all, and I just started saving in a planned way this month,” she said.
Freelancers should avoid taking out high-cost loans until they reach a point in their careers where they have a strong base for regular income and their services become like a brand that people want.
Also, don’t rush into buying big things like a new house. You can put that off until you can really pay for it. Don’t even touch consumer loans with a bargepole.
“Most of the time, a person becomes a freelancer on the spur of the moment instead of by planning it. Deepali Sen, who started Srujan Financial Advisors, said, “Not everyone starts out with a savings cushion.” “If you need a loan, there’s no harm in asking about it. Starting a franchise, for example, might make it easier to get a loan. Some people have to work harder to make money because they have to pay back a loan. However, high-cost loans like credit cards and personal loans can be avoided.
Should you just put your savings in the stock market and hope that in a few years your money will double? When it comes to long-term investments, people are told to take calculated risks to get returns that are higher than inflation.
But stocks move around a lot in the short term. When the capital markets are going down, it can hurt freelance professionals who rely heavily on market-linked investments because they don’t have a steady income or the financial protections that come with working for an organisation.
But it’s not just investing that’s important, it’s how you handle risks in general.
“If there are people who depend on you, you need low-cost term life insurance to protect your family. “Freelancers also need to think about and plan for health insurance and disability insurance,” said Bhagavat.
If you get auto and home insurance to cover things like car accidents and theft, you can be financially ready for a wide range of emergencies.
Create a financial hedge (insurance) and a stable return investment portfolio with fixed deposits, short- and medium-term debt mutual funds, and a good pension fund as your top priorities. Once you have enough money in this part of your portfolio to take care of professional or personal emergencies, you can look for risky assets like stocks or real estate.
As a freelance professional, you need to understand the risks involved in making money and investing, but you also need to be self-disciplined. Chowdhury’s money worries are eased by the fact that her husband also brings in money for the family.
She said, “Most of my income goes right into mutual funds (SIPs), and I keep 10–20 percent for my own expenses.”
Self-discipline helps Khokhar not only meet deadlines, but also save and invest regularly.
“I try to keep a fixed amount in my account that I know I need to spend, and anything extra I invest in mutual funds or put in a separate account that I don’t touch unless I need it for an emergency,” she said.
Starting your own business can give you the work-life balance you need and let you express your creativity, but it’s just as important to make sure you don’t lose money in the process. There is no easy way out. The best thing you can do is be careful about how much you spend and how much you invest until your income is large and steady enough to support your lifestyle choices and your future financial health.
ITR Filing Update: Taxpayers win! Filing ITR before July 31 gets these perks.
ITR Filing Update: If you have to file this year, the Income Tax Department will start the process in the last week of April or the first week of May. ITR is filled out for this class of salaried workers whose accounts don’t need to be reviewed until July 31, 2022-23.
Taxpayers must file their ITR within the time limit to avoid any kind of fine. On the Income Tax Department’s website, a fine of up to Rs 5,000 is given for filing an ITR late. Tell us why you should file your ITR before July 31.
If you haven’t filed your ITR by the deadline, the rules say that you could have to pay a fine of up to Rs 10,000. You may also have to pay interest on the tax you owe if you file your ITR late.
Also, Read – Delhi Metro Update: Beware! DMRC informed about today’s Delhi Metro delay.
If you always send in your tax returns, any government or private bank will be happy to give you a credit. ITR is a very important record for getting any kind of loan.
In sections 70 and 71 of the Income Tax Act of 1961, there are rules about how to move a loss from one year to the next. This means that you can put your loss on your tax return for the next year.
When you file ITR, the government lets you take some things off. This helps reduce the amount of work that people have to do. This makes people want to file ITR more and more.
Delhi Metro Update: Beware! DMRC informed about today’s Delhi Metro delay.
On the Yellow Line of the Delhi Metro, metro service is running behind schedule today between Kashmere Gate and Central Secretariat. Commuters headed to the office are having trouble getting to their destinations because the metro is running late.
On the Yellow Line of the Delhi Metro, metro service is running behind schedule between Kashmere Gate and Central Secretariat. Commuters headed to the office are having trouble getting to their destinations because the metro is running late.
Also, Read – Today’s Gold Price: Good! Gold and Silver prices have dropped significantly, check the 10-gram rate.
The Delhi Metro Rail Corporation (DMRC) reported that there were delays in service between Kashmere Gate and Central Secretariat. DMRC issued the following tweet: “Yellow Line update. There have been delays in service between Kashmere Gate and the Central Secretariat. Service as usual on all of the other lines.”
The city of Delhi is covered with an extensive metro line network. AIIMS, Dilli Haat-INA, Rajiv Chowk, Chandni Chowk, Kashmiri Gate, Azadpur, and Rohini are some of the stations that are served by the Yellow Line of the Metro as it travels from HUDA City Center to Samaypur Badli. As a consequence of this, a significant proportion of individuals perform daily up-downs.
Tips for employing the violet line metro
The Delhi Metro Rail Corporation (DMRC) stated via a tweet that commuters commuting between Kashmere Gate and the Central Secretariat can also take the Violet Line. On the impacted stretch of the Yellow Line, every effort is being made to get normal service back up and running as quickly as possible.
Today’s Gold Price: Good! Gold and Silver prices have dropped significantly, check the 10-gram rate.
Gold and Silver Prices: As of Tuesday evening, 10 grams of gold are worth Rs 59950 on MCX, which is a drop of Rs 51. In the same way, the price of a kilogram of silver fell by Rs 1228, putting it at Rs 73768.
Gold Price: The price of gold and silver went up and down again on Tuesday. If you also want to buy gold or silver jewellery for your wedding, this will be good news for you.
On Tuesday morning, the price of gold went up on the bullion market, but it didn’t go up in the evening, so the market stopped. In the same way, the price of silver went up in the morning and then went down in the evening. On Tuesday, both gold and silver prices went down on the Multi-Commodity Exchange (MCX).
Gold and silver prices on MCX fell.
Prices for gold and silver fell on the Multi-Commodity Exchange (MCX) on Tuesday because spot demand was low. On MCX, the price of 10 grams of gold went down by Rs 51 on Tuesday evening and is now Rs 59950. In the same way, the price of a kilogram of silver fell by Rs 1228, putting it at Rs 73768. On Monday, silver had been worth Rs 74996 per kg and gold had been worth Rs 60001 per 10 grams. At USD 25.31 an ounce in New York, the price of silver fell by 0.8% around the world.
Also, Read – PAN Cardholders: Update! Order issued, Rs 1,000 fine, know your name quickly.
The gold market continues to fall.
The India Bullions Association (https://ibjarates.com) puts out daily reports on the prices of gold and silver on the market. Both gold and silver opened faster on Tuesday morning than they did on Monday. But in the evening, things got worse. On Tuesday, the price of 10 grams of 24-karat gold fell to Rs 60078. Silver’s price also went down, and it closed with a break at the level of 74075. Monday started with gold closing at Rs 60081 per kg and silver at Rs 74390 per kg. On Tuesday, the price of 10 grams of 23-carat gold was Rs 59837, 22-carat gold was Rs 55031, and 20-carat gold was Rs 45059.
Let us tell you that the prices of gold and silver have been going up and down for a long time. In February, both gold and silver prices went down. After that, though, the price rise broke new marks. Experts say that during Diwali, the price of 10 grams of gold could go up to Rs 65,000 and the price of 10 grams of silver could go up to Rs 80,000.
PAN Cardholders: Update! Order issued, Rs 1,000 fine, know your name quickly.
Pan Cardholders: New information, The limit for linking your Aadhaar number to your PAN card is now June 30, 2023. If you haven’t joined yours yet, you can still do so, but you will have to pay a fine of Rs 1000.
People have a lot of different papers. In these papers, both the PAN card and the Aadhaar card are considered important. The new notice from the Government of India, Ministry of Finance, and Department of Revenue says that the deadline for adding PAN to Aadhaar has been pushed back to June 30, 2023.
People need to add their PAN card to their Aadhaar card. In this case, the last day to link PAN and Aadhaar together is now June 30, 2023. But people should also pay attention to one important thing when they link their PAN to their Aadhaar.
Now, you have until June 30, 2023, to link your Aadhaar number to your PAN card. If you haven’t joined yours yet, you can still do so, but you will have to pay a fine of Rs 1000. People who have a PAN card but haven’t tied it to their Aadhaar card can do so for 1000 rupees.
Also, Read – Toll Tax New Pay Rule! Nitin Gadkari altered toll tax laws, car and bike riders will gain highway benefits, information here.
Pan card change
If a person doesn’t link their PAN card to their Aadhaar card by the due date, their PAN card will no longer be acceptable. In this case, you can add your PAN to your Aadhaar card online for just Rs 1,000. You have to go to the official website https://www.incometax.gov.in/iec/foportal/ to link your PAN with your Aadhaar card.
PAN Card-Aadhaar Card
After that, you’ll need to sign in. If you don’t already have an account there, you’ll need to make a new one with the PAN card. Note that your PAN number will be your user ID when you log in. In the same way, the official websites utiitsl.com and egov-nsdl.co.in can also be used to link Aadhaar and PAN.
Toll Tax New Pay Rule! Nitin Gadkari altered toll tax laws, car and bike riders will gain highway benefits, information here.
New rules for the toll tax are good news for people who drive on the highway. People who drive on the highway often have to pay a toll tax, but the rules about toll tax will soon be changed by the central government. Nitin Gadkari has said what is going on.
Nitin Gadkari on the Toll Tax: Good news for people who drive on the highways! People who drive on the highway often have to pay a toll tax, but the rules about toll tax will soon be changed by the central government. Nitin Gadkari has said what is going on. Let us tell you that it plans to bring a bill about toll tax.
The use of technology will get a lot of attention.
Nitin Gadkari, the minister of roads and highways, said that there is no punishment for not paying a toll tax. Along with this, the Union Minister said that in the coming days, the use of technology to collect toll taxes will also be a big focus.
Also, Read – Income Tax Exemption: Seniors can save 10% TDS on FD interest, know rules immediately.
Plans are being made to bring the bill to the floor.
Nitin Gadkari also said that there are no penalties for not paying tolls right now, but that a plan about tolls is being put together. Now, the toll tax will come right out of your bank account. Nothing extra will be done about this.
Money will be taken straight out of the account.
Nitin Gadkari said that you will no longer have to pay toll taxes. Instead, the money will be taken directly from your bank account. Aside from that, the Union Minister said, “In 2019, we made it a rule that cars must come with number plates that were made by the company. So, the number plates on the cars that came in the last four years are different.
Before the year 2024, there will be 26 green expressways in the country, and India’s roads will be on par with those in the United States. Along with this, the Union Minister said that in the coming days, the use of technology to collect toll taxes will also be a big focus.
This time, what is the rule?
Nitin Gadkari said that right now, if a person drives 10 kilometers on a toll road, he has to pay for 75 kilometers. With the new method, he will only have to pay for the distance he traveled. He said that it wasn’t true that the National Highways Authority of India (NHAI) was having money problems. He said that everything is fine with NHAI and that it has plenty of money. He said that the last two banks had low interest rates on loans.
Income Tax Exemption: Seniors can save 10% TDS on FD interest, know rules immediately.
Income Tax Exemption: Only seniors whose only income comes from interest on pensions and fixed savings can avoid having to file an income tax return.
Return of Income: The government gives tax breaks to people over 65. Under this, senior people don’t have to pay TDS on interest from FDs. If you don’t want to pay 10% TDS, you need to do a few important things first.
At the start of the financial year, seniors should turn in the self-declaration form to their bank. Form 15G and Form 15H are two of these.
If the taxpayer’s taxable income is less than the amount that doesn’t have to be taxed, the taxpayer can ask the bank not to tax the interest. Seniors 75 and older who do not want to file an income tax return can send Form 12BBA to their bank starting this year.
Who will be able to save money?
Only seniors whose only income comes from interest on pensions and fixed savings can avoid having to file an income tax return. The second requirement is that both the fixed deposit and the salary should be in the same bank. Form 12BBA needs to be filled out with a lot of information. These include information about deductions under sections 80C to 80U, tax refunds under section 87A, and the total amount of interest from fixed savings and FDs.
The Central Board of Direct Taxes says that after the form is turned in, the bank figures out how much the user made in total. For this, he looks at tax deductions and rebates under Section 87A and deducts tax from the end income based on the slab rate.
CBDT has made sure that filling out this form shouldn’t be hard in any way. So, it has asked banks to help older people fill out the form.
In a way, the bank will file senior citizens’ Income Tax Returns (ITRs) for them. This is a great move by CBDT. Actually, it’s hard for older people to file ITR because the rules for income tax are always changing.
Why is it important to send in 12BBA?
Another benefit of filling out Form 12BBA is that senior people don’t have to worry about getting their tax money back on interest from FDs. According to income tax rules, if a senior person 60 years or older earns more than Rs 50,000 in interest in a financial year, the bank will take 10% TDS from it.
Also, Read – New LPG Subsidy Rules: Excellent! Only these clients receive a Rs 200 LPG subsidy.
TDS will take money from taxpayers in the 5% and 10% income tax brackets. For example, if a person earns Rs 7 lakh in interest, he will lose Rs 70,000 because TDS is 10%. If the individual fills out Form 12BBA, he will need to pay Rs 52,500 in tax. Those who don’t fill out Form 12BBA will get a Rs 17,500 return.
If you don’t show your PAN card, you have to pay a 20% tax.
If the depositor doesn’t give their Permanent Account Number (PAN), there will be a 20% tax on the FD. If the interest you got was below the exemption limit but the bank still took TDS, you can get it back when you file your income tax return.
New LPG Subsidy Rules: Excellent! Only these clients receive Rs 200 LPG subsidy.
New rules for the LPG subsidy are out! Now, only these customers are getting the Rs 200 LPG subsidy. Find out more right away.
The government has good news for the people who benefit from the Pradhan Mantri Ujjawala Yojana program (PMUY). Under the Pradhan Mantri Ujjwala Yojana (PMUY), the government is giving a subsidy of Rs 200 per LPG cylinder. On Friday, the subsidy was extended for another year.
Because the prices of oil products on the international market have gone up, this step has been taken. 9.6 crore families will be helped by this plan. Anurag Thakur, who is in charge of information and broadcasting, said that the Cabinet Committee on Economic Affairs has agreed to give PMUY recipients a subsidy of Rs 200 per LPG cylinder.
This subsidy will cover the cost of 12, 14.2 kg LPG cylinders per year. As on March 1, 2023, there were 9.59 beneficiaries under PMUY. The minister said this would cost Rs 6,100 crore in 2022-23 and Rs 7,680 crore in 2023-24.
Also, Read – Important income tax notice! These five causes will result in an income tax notice and penalties.
In this case, the subsidy goes straight into the bank accounts of those who are eligible. Thakur said that the international price of LPG has gone up quickly because of different international events. In this case, it is important to protect the people who get LPG through the Ujjwala Yojana from the high prices.
In a press release, it was said that customers are more likely to keep using LPG if they get help from PMUY in the form of subsidies. It is important to make sure that PMUY customers continue to buy and use LPG so that they can completely switch to a cleaner way to cook.
The average amount of LPG that PMUY users use has gone up by 20%, from 3.01 refills in 2019-20 to 3.68 refills in 2021-22. This subsidy will go to everyone who gets PMUY. In May 2016, the government started the Pradhan Mantri Ujjwala Yojana to give free LPG connections to women from poor families. This was done to make liquid petroleum gas (LPG), a clean fuel for cooking, available to rural and poor families who don’t have much.
Important income tax notice! These five causes will result in an income tax notice and penalties.
Important income tax notice! The news about income tax is important for taxpayers. In fact, taxpayers are using ways to save money on taxes when they file their income tax returns. In fact, taxpayers have to give every piece of information when they fill out their ITR. If they tell false information, they might have to pay for it.
The biggest thing taxpayers do to speed up the economy is pay their taxes. There are many ways for people to save money on income tax. The government also has many ways for people to get tax breaks.
Taxpayers have to list all of their investments when they file their returns. But if a taxpayer gives the wrong information, it could cause him trouble. People usually do things like this, which gets them into trouble.
If a taxpayer fills out an income tax return form with wrong information, the Income Tax Department can send him a notice under different Acts. There are two ways to look over an ITR: manually and automatically. If you remember a few things, you can avoid making mistakes.
Not filing your ITR
People who don’t file ITR sometimes get notices from the Income Tax Department. If you fall into the tax bracket, you have to fill out ITR. You are an Indian citizen, but you own something in another country. You will still have to fill out ITR in this case. If not, the Department of Income Tax can send you a notice.
Also, Read – SIP Calculation: Huge! Invest 3000 rupees monthly, make 1 crore rupees, calculation information.
Mistake in TDS
When you file ITR, you should be careful when filling out TDS. If there is a difference between where the TDS was filed and where it was deposited, the Income Tax Department may send you a notice. Find out how much TDS has been taken out before filling out ITR.
Unseen money coming in
In ITR, you have to write down how much money you make in a given year. Along with this, information about investments must also be given. If you try to hide the income from investments in this situation, you may get a notice. To avoid getting caught, ask your bank for a statement of interest and put it in your ITR. Besides this, you should also include information about any other sources of income.
If you do a high-value transaction that is different from your usual transactions, the Income Tax Department can also send you a notice. Let’s say you make six lakh rupees a year. But in a year, 15 lakh rupees were put into your account. In this case, the Income Tax Department can look into it and ask you for your source.
Error on ITR return
People often make mistakes when they file their income tax return. People forget to fill in the right information. The Income Tax Department can send a notice if this happens. That’s why you should only let a pro fill out your ITR.
SIP Calculation: Huge! Invest 3000 rupees monthly, make 1 crore rupees, calculation information
SIP Calculation: Huge! Invest 3000 rupees monthly, make 1 crore rupees, calculation information
With a small investment of just Rs.3000, you can also become a millionaire. You should start planning to invest as soon as you can. Find out how you can make your dream of becoming a millionaire come true here.
Today, everyone wants to be a millionaire, but only a small number of people are able to make it happen. Financial planning is the reason for this. If you want to improve your future, you should plan your finances and start investing as soon as you get your first job. After getting a low salary, many people wait until their income goes up before they start investing. This is the worst thing they’ve done.
You can start investing with as little as 500 rupees if you want to. Not only that, but you can also become a millionaire with as little as Rs.3000. There are many plans like this available today that give you very good returns and make you rich in less time. Find out here how to add more than 1 billion.
SIP is best
In this case, financial expert Shikha says that there are many ways to invest today, but investing in mutual funds through SIP has been showing better results for a while. If you put money into it for the long term, you can build wealth. You can start SIP with as little as Rs 500, and as your income grows, you can put more money into it. This gives you the benefit of compounding, and it has been seen to give an average profit of up to 12 percent. If you’re lucky, you might make 15 to 20% on your investment. At the moment, no program offers such a good benefit.
Also, Read – The One Thing Successful Investors Always Do.
From Rs 3000, Rs 1,05,89,741 can be made.
Even if you only put away Rs. 3,000 per month through SIP, you can easily add up to more than Rs. 1 crore. The SIP calculator says that if you put away Rs 3,000 every month for 30 years, you will have put away a total of Rs 10,80,000. But if the rate is 12%, you can get Rs 95,09,741 in interest. In this case, you will get Rs 1,05,89,741 at maturity, which includes Rs 95,09,741 plus the Rs 10,80,000 you put in.
3000 is not a hard thing to do.
It is easy to make between 35,000 and 40,000 rupees a month now. In this situation, it’s not hard to invest Rs 3000. Anyway, if you want to invest money, you should follow the 50-30-20 rule. This rule says that you should always invest 20% of your rupees. According to this rule, even someone who makes 15,000 rupees a year can take out 3,000 rupees every month to invest at a rate of 20%. If you make more money, you can make a million dollars faster by investing more in it.
The One Thing Successful Investors Always Do
Every successful investors also reads a lot. Here’s how to read well and get the most out of it if you want to join the club.
To be a successful investor, you need to read. Investors who want to do well usually start by reading business newspapers, books, blogs, podcasts, newsletters, etc. Some of the information they find is helpful, but a lot of it is hard to understand. This makes it hard to figure out “what,” “why,” “when,” “how,” and “how much” information to take in.
In this article, you’ll learn techniques, strategies, and tips that will help you get organized and become a better reader. Instead of just telling you what books to read, we will also tell you how to improve your reading skills.
1) How Can I Find Time to Read?
People often say they don’t have enough time as a reason for not reading more. But sadly, that argument doesn’t go very far, since the richest people in the world, like Warren Buffett, Charlie Munger, Peter Lynch, etc., always find time to read. To put it another way, reading isn’t a way to find time; it’s a way to fill time.
For example, you are looking for work or making something. A great time to listen to an audiobook is when you don’t have anything else to do. If you take the Metro to work, you can replace an hour of mindless scrolling through social media with an hour of reading on your Kindle app.
Do an audit of your time and look at your whole day. You might be surprised to find 3–6 spots where you can fit in some reading time. But these time boxes don’t have to be the same. You can mix them up instead. Say, you have 30-45 minutes to read on your way to and from work.
You could probably read a book during that time, but you should also have these smaller 10-15 minute slots. You can probably read a couple of newsletters while drinking tea. At first, this might not make much sense, but it will all make sense in the end. Before you knew it, you’d have 50–60 hours to read over the course of a month.
Also Read: Brand or Trade names that advisors and analysts can use? Rules by SEBI
2) How do Read Daily?
James Clear wrote a great book called “Atomic Habits.” In it, he talked about some ways to pick up good habits and get rid of bad ones. It just so happens that some of these methods can also be used to make reading a habit. For example, if you have a lot of fried snacks around the house, it will be very hard to lose weight no matter how strong your willpower is.
In the same way, having a couple of books next to your bed makes it more likely that you’ll read them instead of scrolling through your social media pages before bed. If you’ve read “Atomic Habits,” you know that the book talks a lot about small habits. The key is to break up big tasks into small pieces that you can handle. The same idea can be used to make a method for reading books. Say you want to finish Mohnish Pabrai’s “The Dhandho Investor” in a week. It has about 208 pages, which is 30 pages per day.
Here’s what you can do if you want to finish it in a week. Get seven sticky notes. Write the names of the seven days of the week on each note. Your reading week starts on the first page. Then you put Tuesday on the 31st page. On the 61st day, it will be Wednesday, and so on. So, you’re giving your brain a goal to work toward every day.
By using these simple Post-it notes, you not only have an idea of what you want to do, but you also have a visual reminder that will definitely help you stay motivated. So, try these two things to make reading more fun for you.
3) Should you read quickly?
Many people think that speed-reading is the best way to learn something quickly. For what it’s worth, this has led to hundreds of videos on YouTube that say they can teach this skill that will change your life. Now, reading quickly is like watching a movie twice as fast. You might understand the big picture of the story, but you would miss out on little things like the music, the tension, the dialogue, etc.
Speed-reading can help you find information quickly, which is a good skill to have when studying for exams. However, this won’t help you learn about things like investing. When you read books about investing, your goal shouldn’t be to get through the book as quickly as possible. Instead, it should be about how well you understand the text, how well you can think about what you’ve learned, and how well you can use what you’ve learned in your investing model and in how you see the world.
The one exception to this rule is listening to audiobooks or some YouTube videos. So, they can be used at 1.25x or 1.5x if the speed of the voice is slow. When reading, it’s best to take your time to understand what you’re reading and avoid tricks like speed-reading that aren’t necessary.
Also Read: Lower interest rates are being offered by lenders for new mortgages. Should you refinance?
4) What Should I Do After I’ve Finished a Book?
People read books, such as those about investing, as well as blogs, newsletters, financial statements, and other things. The main point of that is for them to be able to use what they learn in their investment plans and practices.
Naval Ravikant or Ryan Holiday remarked on a podcast, “Invest in books. These may improve your life for just $10.” Start with a summary page. The book’s primary idea, top five takeaways, and two notable quotes should be included. Write down how you’ll improve your life or invest.
If you want to make your commitment even stronger, write a summary and post it on a social media site. Let’s talk about something simple that Parimal does on his Twitter account. He reads about a trending topic and understands it. Then, he uses his pen and paper to write a one-page summary, which he then tweets to the whole world.
One more thing you can do is make notes or highlight important parts. Most of us overdo this part by coloring the book and highlighting too many passages. Instead, a filtration process is suggested. You only write down the top ten things you learned from a book, which you can easily do on the front or back page.
Say you enjoyed a Steve Jobs marketing case study. If so, turn to the book’s blank first page. Apple Jobs and clever marketing on page 54. So you can remember the book’s top ten lessons. If you wish to return to the book or use it for a blog, Instagram post, Twitter feed, etc., it can be handy.
5) Which Book To Read?
A quick search on the Amazon shopping portal is the most common way of identifying which books to read. There are reviews, book covers, author bios, sample chapters, etc. Amazon does a fantastic job of influencing what one reads and what one doesn’t. Now to that effect, Alex from Alex & Books gives a wonderful tip.
He says when you look at 5-star reviews, try to ignore them, as most of them come from superfans, friends, and family members. Likewise, ignore the one stars, which are more around damaged books, late delivery, and similar issues.
So, essentially, Alex puts a higher weight on the 2, 3, and 4 stars, as these are the people who put in some thought into writing the review. The second selection technique one can use is to read up on what others are reading. And generally, the best source for procuring that list is from podcasts or Twitter feeds.
Case in point: Monish Barbara tags some of the books to read on his Twitter account, and that’s a great place to start. In this way, one can get introduced to some excellent yet famous books that are generally omitted from bestseller lists.
A not-so-obvious advantage of this approach is that you don’t end up reading the same stuff that everyone else is reading. Finally, don’t shy away from thinner books. There is a tendency amongst most people to not read short stuff which is 70-90 pages in length.
Maybe the thought process is that a small book will not offer much knowledge. However, a small book is actually better because it gives concise and more actionable information without the author rambling or beating around the bush.
We have too many books to read, both online and in real life. If you want to know if reading helps you become a better investor, it depends on what you do with the data or information you learn from books. Most of us find it hard to find time to read in this busy world, but all it takes is a small shift in how we spend our time. The tips we’ve talked about show you how to start reading and get better at it. People say that practice makes perfect. The same is true for reading.