I make decent money but always feel cash-poor. What is the simplest thing I should do?

Forget about planning till age 85 for a moment.

Start with your cash flow for the next two years.

Take a piece of paper and list the major expenses you already know are coming.

October — domestic trip — ₹1.5 lakh.
March — school fee — ₹1.5 lakh.
June — health insurance — ₹45,000.

You may realise there are only eight or nine major expenses over the next two years.

Then look at your current portfolio and how much your SIP will add over those two years.

That tells you whether the money you are building is enough for the expenses you can already see.

“Forget about life planning. Forget about retirement planning. Start doing a very simple thing — my cash flow for next two years. That’s it.”

This question and answer is derived from the podcast between Bedant and Sachin. See the full podcast here.

This is not personalized investment advice. Your financial situation, goals and constraints may be different, so assess your own situation and discuss it with your financial advisor.