#Finance 101 - If you make 15 Lakhs in a year, is your #profit 15 Lakhs? Nope!
- 1st, remove 6%-7% of your initial Corpus from it for #inflation.
- 2nd, remove your base-line #expenses to #survive in your current #environment (will vary based on your locality + needs)
- 1st, remove 6%-7% of your initial Corpus from it for #inflation.
- 2nd, remove your base-line #expenses to #survive in your current #environment (will vary based on your locality + needs)
Comments
So, if your initial #corpus was 50 Lakhs, then
1. 6% = 3 Lakhs
2. Let's say 6 Lakhs
Thus, you actually got 6 Lakhs for the effort of the year, not 15 Lakhs.