Books And References To Build Wealth

Knowledge is power

We wonder how people make sound decision in life. I will say its due to the lesson they learnt from others experience. We are not lucky to make friends with great investors (Benjamin Graham, Warren Buffet, Charlie Munger, Ray Dalio), leaders. Great news is we have books, talks given by them. With internet its available for free.

Below is my list of books and references I read. You should never, ever stop learning in other words “Never be content with knowledge and wisdom”

Books:
Links and References:


Disclaimer –
“Believe nothing, no matter where you read it, no matter if I have said it, unless it agrees with your own reason and common sense.”  –  Buddha

How to avoid going broke.

Rather go to bed supper less than rise in debt – Benjamin Franklin

We hear stories of people going broke all the time due to various reason like lifestyle factors (too much debt), unexpected events (medical expenses, job loss, divorce etc..) systemic Issues (inflation, In this article we discuss the debt and how to avoid going broke with simple ration debt to income ratio (DTI).

Debt To Income Ratio – keep below 10% to 36%

The formula to calculate debt to income ratio is divide monthly total net income by month debt payments (loans, credit card..) Usually gross income is used personally I will use net income because that’s the actual cash in hand.
Example

If your monthly debt payments total $2,000 and your net monthly income is $5,000:
($2,000 / $5,000) * 100 = 40% Debt to income ratio (DT)

Keep tracking of Debt To Income Ratio every month you can avoid going broke by course correcting the mistakes.

Disclaimer –
“Believe nothing, no matter where you read it, no matter if I have said it, unless it agrees with your own reason and common sense.”  –  Buddha