Money & Work
Spend less than you earn, invest the rest
Novice
Subdomain
Killing high-cost debt and building an emergency fund of 3 to 6 months of expenses. In India that means credit cards and personal loans first, EMIs second.
Emergency fund first
A liquid cash buffer of three to six months of essential expenses, kept in a boring high-interest account you can access in a day.
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Kill high-interest debt first
A rule that says any debt above roughly 15 percent annual interest must be cleared before serious investing begins, because paying it down is a guaranteed return at that rate.
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Debt avalanche vs snowball
Two competing strategies for paying off multiple debts: avalanche prioritises highest interest rate first; snowball prioritises smallest balance first.
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Credit card debt math
The compounding cost of carrying balances on credit cards, where typical Indian APRs of 36 to 48 percent silently consume household wealth.
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Emergency fund
3-6 months of essential expenses kept liquid and accessible.
SIP
Systematic Investment Plan, automatic monthly investment into a mutual fund.
Expense ratio
Annual % a fund deducts to run itself. Lower = better, all else equal.
Index fund
Fund that tracks a market index (e.g. Nifty 50). Low fee, no stock-picking.
Term insurance
Pure life-cover for a fixed term. No payout if you survive, that's the point.
Inflation
General rise in prices, the silent tax on cash.
Compounding
Earning returns on past returns. The longer the runway, the bigger the effect.
ELSS
Equity-Linked Savings Scheme, tax-saving mutual fund under Section 80C in India, with a 3-year lock-in.