How I invest my money
A thread...
Last year when I stepped down as the CEO of nearbuy - I was a classic case of paper wealth with no cash in hand.
I had stupidly over indexed on equity, made terrible mistakes with money (see thread the end of this thread) and had no other income stream.
I realized the biggest mistakes I had made was investing in largely illiquid assets - startups and real estate. With extremely poor liquidity.
So while I had "wealth" I did not have any income.
The last year I have been working on changing that.
1. Term Insurance
A decade back I bought a term insurance plan for 25 years, for 10Cr.
Which means if I die in the next 25 years (by the time I am 55), my family will get 10Cr (over and above my ongoing loans).
If I don't die, I get nothing.
My logic at 30 was that by 55 I should be able to get to the 10Cr mark myself.
Until then I rely on an insurance plan.
This amount I believe takes care of all current and future needs of my family.
This gives me mental peace, should something happen to me ever!