Plan money management for FY25 with Ankur Warikoo’s new audiobook ‘Make Epic Money’ on Audible

Money matters: Navigating a barrage of online information to gain awareness on money management matters for forthcoming financial year could be a daunting task. If you are on hunt for some guidance for wealth creation, better investment, and tax saving, Audible has got you covered.

In his latest audiobook, ‘Make Epic Money’, on Audible, entrepreneur, and content creator Ankur Warikoo, breaks down complex finance concepts into actionable tips to grow your wealth. Covering essentials like financial literacy, savings, investments, budgeting, and earning strategies, bestselling author serves as a trusted guide, offering valuable insights for everyday life to help you plan better right from beginning of next financial year. Here are following five tips from Ankur on how to grow your money, tune in to Audible for more details.

Understand Difference Between Assets & Liabilities

Delving into significance of financial literacy, Warikoo explains difference between earning a living and growing one’s wealth. “ truth is that professional degrees help you earn a living, and financial literacy helps you build wealth.” He brings forth his key insights on what one must do to keep away from any kind of liabilities and provides practical solutions to invest in assets in best possible way. He emphasises, “Don’t just look at price tag, see full cost of ownership. If it costs you money and loses value, it is a liability. Aim to get assets that generate cash flow, assets that earn you money while you chill, assets that cover your expenses and assets that let you do things you want to do. Keep liabilities to a minimum.

Find Ways to Boost Income Opportunities when Young

Drawing from his experiences, Ankur imparts invaluable insights on effective financial planning, offering a romap to youth to budget ir income methodically to secure ir financial future. “If you are in your 20s and your income is less than Rs 3 lakh per annum, you have time. Take risks and find ways to boost your income. First is financial protection and emergency funds. Build it for three months. Health insurance for your parents - y need it. You can be without one right now. Life insurance can wait till your 30s or till your income exceeds nine lakhs. Don’t spend more than 20 per cent of your desires on this income. You can’t afford to spend more than 20% of your monthly salary after tax. Find ways to increase your income. Look for or active and passive income opportunities. Invest at least 30 per cet of your income. Time is your biggest asset. Most of your portfolio should go into stock market to maximise power of compounding and get yourself higher returns.” he says.

To supplement living you earn from your day job, Ankur encourages listeners to set up multiple income streams. He urges, “Stay in your current job, use your salary as a safety net. This way, re is no pressure to make money off your or income streams. n take out time from your day job. ultimate goal is to move towards a passive income stream where you don’t have to spend your time to make money. Inste, your knowledge, your skill, your process, and your money make money for you through your assets.” he says.

Beware of Credit Card Trap

Ankur vocates for prudent financial habits by encouraging listeners to remain debt-free. He emphasises importance of responsible usage of credit cards, vising individuals to consistently settle ir credit card balances in full to avoid accruing unnecessary interest charges. Sharing consequences of falling into minimum amount trap, he says “ outstanding amount accrues interest, your debt escalates, your due payment increases plus your credit rating is affected. Credit cards give you illusion of free money.” He also teaches listeners how y can use credit cards to make money. “Number 1 - Interest-free loans. Credit cards offer a 30-45 day interest-free period. It’s like a mini loan for whatever you need. So if you make a big purchase using a card early in month, invest that amount in a short-term debt fund. You earn some happy money for free. Number 2 - Improved credit score. Your credit score, which is also called CIBIL score determines creditworthiness. It increases based on how consistently you pay off your loans and how many loans you have. A higher score is equal to a better credit profile. So if you pay your credit card bill on time and in full, your rating builds and improves.

A better rating means VIP loan treatment in future. You get a lower rate of interest and save money in long run. Number 3 - Reward points. Redeem rewards points for air miles, free tickets, hotel stays, gift cards, cashback, and more. Explore and make most of se freebies.” Sharing a pro tip, he suggests opting for a credit card with 0 yearly charges or one that is backed by a fixed deposit when applying for it for first time.

Save Interest on Loans by Reducing Loan Tenure

When taking loans to purchase big-ticket items, it can be stressful to shell out money every month, not just to repay principal amount but also interest to bank. Sharing a quick tip to get rid of loan sooner, Ankur shares a trick to save interest on loans. He says, “ only principle you need to know - reduce loan tenure so you can reduce interest you pay. Sharing an example of paying off a 25-year loan in just 10 years, he shares, “In initial phase, you pay more interest and less principal so banks reap profits. Over time, you pay more principal and interest declines. trick is to slash your interest costs as early as possible. re are two ways to save interest on loans. Number 1 - pay extra EMIs every year and number 2 - keep increasing your EMI every year. Every year if you pay 1 extra EMI, so inste of 12 EMIs you pay 13 EMIs plus increase your original EMI amount by 5 per cent every year, you will clear your 25-year loan in just 12.5 years. What if you increase your EMIs by 10 per cent? You will clear your 25-year loan in just 10 years. You will also save 50 per cent in interest that you would’ve paid over 25 years. best part - it doesn’t matter what loan amount is.”

Renting vs Owning a House? Find out what’s better!

dressing perennial question of buying versus renting a home, Ankur challenges conventional thought process that owning a house is wisest financial decision and ultimate life achievement. To prove how decision to purchase a home is often driven more by emotion than financial reasoning, he explains concept of rental yield as a key factor in evaluating financial implications of renting versus buying. He says, “Rental yield is equal to annual rent you pay divided by property value multiplied by 100.” Citing an example of a house worth Rs 1 crore with a monthly rent of Rs 20,000 he calculates furr, “You pay Rs 20,000 a month as rent which is equal to Rs 2.4 lakhs over entire year and when you divide it by Rs 1 crore, you are essentially paying 2.4 per cent of house value as rent every year. Yes, you’re living Rs 1 crore life at 2.4 per cent annual cost.”

As he continues to dissect financial dynamics with clarity and precision, Ankur encourages listeners to approach decision practically and consider both house value and rent growing evenly in future. In case of renting, key expense is monthly rent while cost associated with buying comprises down payment which is around 20-25 per cent of value, EMI and interest, registration cost which varies between 3-7 per cent of home cost, brokerage fees that is usually 1 per cent of home cost and maintenance cost. He ds, “When you d up all of se costs, you end up paying nearly three times of home price over a 20-year period.” He recommends, “Invest down payment for next 10 years as a lump sum amount. Invest difference between what would have been your home loan EMI and rent as a monthly SIP. n over a 10-year period, you will build enough corpus to buy nearly 50-70 per cent of your dream home on a down payment.” Hence, he proves how renting can provide one with a higher standard of living within budget because rental yields are very low in India, proving monthly rent is kinder to one’s wallet.