My Notes from YT Nugget – How He Earns 2L Passive Income On a Career Break?

My Notes on Questions and Answers from the Video Byte

  1. Why did Ajinkya decide to take a career break?
    To achieve a better work-life balance and pursue interests outside his profession, driven by an unsustainable work-life balance and the desire to switch from operations to other areas.
  2. What were Ajinkya’s rules for his career break?
    Not compromising on his lifestyle and ensuring that inflation did not erode his net worth.
  3. How did he ensure that his lifestyle and net worth were not compromised during the break?
    By adjusting fixed deposit allocations based on quarterly expenses to maintain his desired lifestyle without compromising his expenses.
  4. Did Ajinkya have a specific “fire number” in mind for retirement?
    No, he did not have a specific “fire number” for retirement. And acting as a true consultant, he mentioned he instead has a “fire framework” and not a “fire number” :XD.
  5. What framework did he have in mind for retirement planning?
    Ensuring that expenses would not decrease his net worth below a certain threshold until his life expectancy.
  6. Besides focusing on health, what other activities did Ajinkya want to pursue during his break?
    He aimed to pursue coding, writing books, and working with startups.
  7. What was the split of his portfolio between fixed deposits and mutual funds?
    Approximately 40-50% in fixed deposits and 30% in mutual funds.
  8. Did Ajinkya withdraw from mutual funds during his break?
    He tried to avoid withdrawing from mutual funds, favoring fixed deposits for passive income and treating mutual funds as a long-term investment.
  9. How did Ajinkya’s relationship with money change over time?
    He came to view money as an enabler for a fulfilling life rather than a means to luxury, focusing on wise usage to support his lifestyle and pursue interests.
  10. What were the major expense categories during his break?
    Travel and food, allocating significant expenses to leisure travel and diverse cuisines.
  11. What is Ajinkya’s perspective on the correlation between quality of life and money?
    He believes in a subjective correlation, asserting that while money is necessary for a good life, the required amount varies by individual preferences and goals.
  12. What is his long-term career goal?
    To continue working and making an impact until he is 65, using his skills and expertise for positive impact.
  13. How did Ajinkya view the upsides and downsides of taking a career break?
    He viewed the benefits of improved work-life balance, personal interests pursuit, and health focus as outweighing the potential downsides, provided financial planning is strategic.
  14. What is the importance of financial independence according to Ajinkya?
    He sees financial independence as necessary but not sufficient for retirement, implying that other factors are crucial for a fulfilling retirement.
  15. Besides fixed deposits and mutual funds, what other types of investments did Ajinkya have?
    Investments in higher-risk assets like startups and cryptocurrencies, which constituted a smaller portion of his portfolio.
  16. Can you explain Ajinkya’s financial planning process in detail?
    His planning involved strategic adjustments in fixed deposit allocations to match quarterly expenses, minimal withdrawals from mutual funds, and a balanced approach between passive income and expenses to ensure his lifestyle and net worth remained intact during his career break.

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