How to Plan Your Finances | Personal Finance Class 2 | Neeraj Arora

Free notes for Class 2 are available here: https://academy.learnn.club/courses/P...

Learn about Mutual Funds with me: https://academy.learnn.club/courses/I...

Learn Excel: https://www.skill91.com/courses/Excel...

Welcome to Class 2 of Neeraj Arora – Personal Finance Classes.

Before you ask:

“Which mutual fund should I buy?”
“Should I start an SIP?”
“Should I invest in gold?”
“Which stock should I buy?”

There is a much more important question:

Do you actually know your own financial life?

In Class 2, we build the foundation of financial planning by answering 5 important questions:

How much do you earn?
How much do you spend?
How much do you owe?
What do you own?
What are you saving for?

We will also understand:

Why “Where should I invest?” is often the wrong starting point
Why financial awareness must come before financial decisions
How to track your income and expenses
Why you should distinguish between mandatory and discretionary expenses
How to understand your loans and liabilities
What assets you own and how they contribute to your financial position
Why every investment should have a clear goal
What Net Worth means
How to calculate your Net Worth: Assets – Liabilities
Why you cannot manage and improve what you don't measure

The idea is simple:

Awareness precedes change.

Before you start investing, first understand where you are today, where your money comes from, where it goes, what you own, what you owe and what you are saving for.

This is Class 2 in our journey to learn Personal Finance and Investing from scratch — just like a teacher teaches students in a classroom.

Timestamps-

00:00 Class 2: Know Your Money Before You Invest
01:44 Mistake which everyone does
05:36 5 Important Questions which you should ask
07:00 How much do you earn?
09:12 How much do you spend?
13:05 How much do you owe?
14:31 What do you own?
16:46 What are you saving for?
19:28 Networth
21:38 Personal Message