Shyam's take on personal finance

"Not all debts are bad"

There's often a misconception that all debts are bad, but that really isn't the case. It is crucial to be able to spot the difference between a "good" debt and a "bad" debt. A debt is often regarded as "bad" when it is used to purchase unproductive and/or consumptive products that do not assist you in producing more money. While a "good" debt is used to increase your income, this is done by investing the debt in assets that increase your money either through capital gains or other modes (i.e. house mortgage).

"Don't be scared to get started"

Every opportunity to learn is one you should utilise. Yet, people often hinder away from these opportunities because going into something you are unfamiliar with can be scary and intimidating. In other words, not knowing how to manage your finances is nothing to be embarrassed about, even those who are part of the finance industry are still learning. The most important part is to take the first step.

"Knowledge is a worthwhile investment"

One thing that Shyam encourages everyone to do is to put a small amount of money (the minimum deposit amount will do!) on new ideas or investment accounts, in order to have knowledge of how things work and get accustomed to the system. These tiny investments might not give you massive profits, or worst case scenario it might not result in anything. But the point of doing this is not to get monetary incentives, rather it's to gain real world knowledge that you cannot get anywhere else.

"Small amounts make big differences"

There are day to day costs that are often overlooked because of how small it may seem, few thousand rupiahs a day for transportation doesn't sound too threatening for our bank accounts right? But this is actually a common mindset mistake that most people have about their savings account. "There is no point in saving this, it's too little" can actually prevent you from making a long term investment as the amount does add up overtime.

"No debt (ex. student loan) is worth sacrificing your mental health"

If Shyam could go back in time, he would tell his younger self to relax a bit, and that he doesn't have to pay off his student loan in such a short period of time. Although he did manage to pay everything off within a year, the stress that came along with it really wasn't worth it. From this experience, Shyam wants to remind everyone the importance of creating a clear plan with a target that allows you to live comfortably while still being able to pay off whatever debt you have. Taking care of your mental health is a long term investment too.

Now, if you're wondering what are Shyam's tried and tested personal finance tips, hop onto our LinkedIn to learn more ( !!

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