Deep Dive into the Construction Phase
Building a Personal Financial Model
How much do I earn and spend?
I am a salaried employee working in New York
In 2015—I earned $10 lakhs as gross salary
My salary increases by 10 percent—once in three years I get a promotion and my salary increases by 30 percent in that year
I have rented a place in New York
My effective tax rate is 20 percent—I pay tax on my gross salary
Interest rate I get on FD is 8 percent
Interest I pay on my bank loan is 14 percent
What do I have?
I always keep $20,000 with me—The minimum cash I maintain all the time.
I have some investments in the form of fixed deposits.
All my savings in invested in fixed deposits.
I also have a land worth $2 lakhs in my village.
There ...
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