Make Epic Money is a beginner’s guide for a 20-year-old who doesn’t know a single thing about saving and investing, Ankur gives you all his wisdom on when to start investing, when to buy a home, how to use credit cards, and most importantly the relationship with money.
The book has 10 chapters and 330 pages that give you a clear idea about why people around the world are obsessed with pieces of paper aka money.
Let me first say thank you for reading this. This will be a weekly newsletter, hope you enjoy it. Now I will see you every Sunday at 9:00 AM (IST).
Make Epic Money Summary
Make Epic Money is a Gen-Z guide to becoming financially independent. It’s a perfect read to understand what is money and how to use it wisely. As Ankur Warikoo says “Money won’t give you happiness but it will for sure give you the freedom to fulfill your dreams”
When I received the book, the first thought I had was, oh, this is a big book and this can’t be for new readers but when I read the first chapter then realized why this is only for new readers.
Because the author talks about how money was invented (from barter to piece of paper) and why we all humans agree on one single thing which is money.
The author also guides you on the best time to buy your dream house and when you should and shouldn’t take the debt. He even talks about when you should close your loans.
Ankur Warikoo says “We make worse decisions at the end of the day. We make worse decisions when we’re tired.”
One more thing, smart author knows that people love free stuff and this is the reason Why Make Epic Money has more than 10 QR codes within the book that give you free MS Excel Budget, Tax Planning, or even an EMI planning calculator.
That being said, let’s explore each and every chapter.
I’m keeping my promise, this is the mini-ebook of Make Epic Money by Ankur Warikoo. So download right now and read wherever you want for free. Happy Reading.
Why Money Matters
As the author says “In Money We Trust. And That’s Why it Works!”
The 1st chapter is all about how and why we all moved from a barter system to paper money.
Back in the day, we used to buy products by exchanging each other’s products.
For example, if I want 1 Egg and you said to me that, I have 1 Egg but I want an Apple in return, and I will say, take this apple and give me 1 Egg.
This exchange of items is called barter.
But the barter system didn’t last for a long time because all the products couldn’t have the same value.
So one day, a wise man comes in and says, hey, I want 3 eggs but I will give you 2 apples. So here, take this piece of paper that says, I have your egg and whenever you need your egg, bring this with you.
From that day, the idea of paper money came into place. This is why we all use paper money to buy things, this is the trust we all have because that note says “I promise to give this amount of money”.
The history of barter is quite long, so if you want to take a deep dive then I would suggest you visit the Wikipedia page of the barter system.
At the end of the chapter, the author says “The true purpose of money is NOT to help us buy things. The true purpose of money is to grant us freedom over our time, our choices, and the way we lead our lives.”
What he trying to say is that money doesn’t buy you happiness but it gives you the freedom to do anything you want and the freedom might give you happiness.
Play Differently, Play Smarter
Ankur Warikoo says “Wealthy people have it figured out. They’re wealthy because they don’t build their lives around a salary. They use their time and ideas to create multiple income streams. They work for money. But they also put their money to work.”
The 2nd chapter is all about Asset and Liability. The author gives you a bunch of examples of what is Asset and Liability.
For example, a Car is a Liability because you will spend money on service, repair, and even insurance at the same time, investing and buying a house for rent is an Asset because your money is working for you.
So make sure you don’t spend your hard-earned money on Liability all the time, try to create an Asset that makes you money while you sleep.
“Even better, invest in yourself. Eat Well, Exercise, and learn new things every day. This will give you lots of new opportunities, so before you do anything, trust yourself and invest in yourself.“
There is no powerful asset than yourself.
For those who are doing the job and want to create a new income stream, here, the author has added a list of things that you can do.
- Create Content: Whatever you love doing, you can start a blog or even a YouTube channel. One more thing, you won’t earn from day one but after some time, you will start seeing the results. Maybe start a website like BookiesTalk.com.
- Online Courses: Ankur Warikoo himself sells online courses and he makes crores every month. So first start a website & YouTube channel and after some time, provide value with the help of Courses.
- Invest in Stocks: If you’re earning money then it makes sense to invest. So pick a few stocks or maybe invest in an index fund. Play the long-term game and you will thank yourself.
These are not the only options to make money, there are tons of options available. Just pick and start working on them.
Just take a few hours, maybe after the job or before you go to the job. A few hours every day for a year will do wonders.
We will end this section with the author’s words “The reality is that there is no pie. Wealth can be created, instead of just being distributed.
Imagine a Maggi packet. It costs ₹14. Add water, toss in some veggies, and serve with some ketchup-you’ve got a meal that’s now sold for ₹45. Someone added value and created wealth”
So run after Assets and try to lower your Liability as you go.
Money You Don’t Have
Starting with the author’s words “It’s Not about Spending Less. It’s about Spending Right.”
The 3rd chapter is all about credit cards and Loans.
I love my credit card but I don’t use it to buy things that I don’t need. I’m not an impulsive buyer, once I was but now, I have learned from my mistakes.
The author says, if you have a credit card and if you want to buy a product worth Rs 60,000 then first check your bank account to see whether you have Rs 60,000 or not.
If the answer is, No I don’t have that amount of money then it is better you don’t use a credit card.
This is perfect, isn’t it? Don’t spend money that you don’t have, great advice. Now the problem is, we all know this, and yet we don’t apply this rule because we have EMIs.
Buy a Rs 60000 product on EMI, just pay 4000 every month, not a big deal at all.
This is the problem. Because of this mindset, you will keep buying everything on EMI whether you need it or not. I mean, you don’t need an iPhone, and yet you’re paying EMI.
So as the author says “Before you spend, Pause. Ask Yourself This. Does it make sense to ME? Treat your credit card like a cool debit card. Swipe it only when you’ve got the cash ready to go. Or when you’re sure you’ll have it next month.”
This also applies to taking a loan, buying a home, Car or even swiping a credit card.
The author also talks about how to pay EMIs but I won’t talk about this in-depth, instant I will leave you with the author’s words,
“If you give 1 extra EMI every year + increase your original EMI by 10% every year, you pay off a 25-year loan in just 10 years!”
Saving Won’t Make You Rich
The author says “If you’re just ‘saving’, it’s a random number. If you don’t hit it, you don’t care.”
The 4th chapter tells you everything about saving.
Let’s say, you’re saving Rs 5,000 every month but you don’t have any goals in mind then the day will come and you will end up spending it all.
Because of this, you will spend that savings whenever you need whether it’s on buying a new phone, going out with friends, or spending money where you don’t need.
The only thing you have to do is, set a goal.
Ask yourself, why are you saving that Rs 5,000 every month? It could be for buying a home, buying a new phone, buying a car, or for your retirement.
Setting goals will give you a clear idea and you won’t use that saving fund whenever you want because now, you know the reason for saving money.
The author also talks about the 50:30:20 Budget Rule.
- 50% of your salary on your needs (essential spending).
- 30% of your salary on your wants (desires, because, hey, you have a life!).
- 20% of your salary on your savings (and thus investments for your short-, medium, and long-term goals).
Saving is great but what’s even greater is investing. So do that as early as you can.
With that being said, Ankur Warikoo has shared a few tips to help you save more,
- Automate: If you’re an investor then set monthly SIP. This way, you won’t have second thoughts on whether to invest this month or not.
- 30-day Rule: Wait for 30 days if you’re about to make a big purchase. This will give you a clear idea of whether you need that product or not.
- Choose UPI/Debit Card over a Credit card: When you use UPI or even a Debit card, you’re spending the money you have whereas, when you use a credit card, you’re spending the money you don’t have. Use a Credit card when you have enough money in your bank account, if not, then don’t use it.
- Rent it: If you don’t use it a lot then it’s better you rent it. These days, you can rent a camera, car, or even a house. So don’t make impulse buys because you think you need to.
- Stick to The list: Going to the Mall to buy groceries is great but it’s even better if you go with a list of items you need, this way, you won’t end up buying the things you don’t need.
You will find more tips in the 4th chapter.
As always, ending the section with the author’s words “DON’T go through life focusing only on a savings mindset.
There’s a limit to how much you can save. But remember, there’s no limit to how much you can earn.
Keep finding ways to increase your income. That will help you build wealth much faster than saving.”
When you fly in an airplane, the air hostess says “Put your oxygen mask first”. In the same way, the author says “First and Always… Protect Yourself”
- Get health insurance to keep you steady amid surprise medical emergencies.
- Get life insurance for when the unimaginable occurs, disability, or accidents.
- Build an emergency fund for everything else.
You got it right, the 5th chapter is all about when to take health insurance, and life insurance and why & how much emergency fund you should save.
Have you read articles that tell you everything about which health insurance is good, when to take it, things to know before you buy health insurance, which company is the best, and why everyone should take health insurance?
The same author has written in this chapter, so it’s better if you use Google. So to save some time, let’s talk about the emergency fund.
Everyone should have emergency funds but how much?
- Break down your monthly must-pays Rent, EMIs, utility bills-the essentials.
- Multiply them by 6. Voila! You’ve got a 6-month safety stash to start with. Want to be extra prepared? Aim for a 12-month cushion that’s ideal.
What I do is, I have a separate bank account for emergency funds. Every month, I deposit X amount of money and I don’t touch it at all.
I don’t invest my emergency funds in the stock market or even in mutual funds. I have kept 70% of emergency funds in FDs, 10% as actual cash, and 20% in bank accounts.
Make FDs for only emergency funds, don’t invest emergency funds at all. This way, you’re at least earning 3% to 4% interest, and at the same time, you can access the amount within 24 to 48 hours.
Yes, the money you invest in FDs won’t go down even if the stock market goes down.
There you have it, now at the end, here is what the author says about emergency funds,
“An emergency fund is like a DIY insurance plan.
Cash is hidden away for the events that life and health insurance can’t cover. Car breakdowns, home fixes, sudden job jolts, legal surprises, travel emergencies.
The unexpected stuff.”
Time To Earn While You Sleep
To put it into Ankur Warikoo’s words “Saving is great, but it’s pointless without investing. The biggest risk is taking no risk.”
Yes, the 6th chapter is all about investing and living a life full of freedom.
So invest as early as you can and as much as you can. It doesn’t matter whether you invest Rs 500 or even Rs 5,000.
Let’s say, you start investing Rs 500 at the age of 20, so by the time you are 60, you will have Rs 60 Lakhs.
This is the power of compounding. Also, it won’t be like, you will only invest Rs 500, you will invest more when you start earning more. What I’m saying is, increase your investment amount when your income grows.
“Allow compounding to happen. It takes time. Decades. For the longest time, it will seem like nothing is happening. But it IS happening!”
Now, the question you might have is, how much money to invest every month? Here use the 50:30:20 Rule.
- 50% For Your Needs
- 30% For Your Wants
- 20% For Your Investment
If you’re earning Rs 20,000 monthly then invest at least Rs 4000. Now, where to invest and how much, here, depends on how much risk you want to take.
If you’re a Ricky guy then you can invest Rs 4000 in the stock market but if you want a balanced portfolio then maybe invest
- Rs 1000 in PPF (gives you a fixed 7.1% interest annually)
- Rs 1000 in debt funds
- Rs 2000 in the stock market
This is called Asset Allocation. You can play around with numbers as per the risk you want to take.
Talking about myself, I invest 70% in the stock market and 30% in PPF. Along with this whenever I feel like it, I invest in crypto as well (not financial advice, it is too risky. I do it with no hope of getting money back)
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The biggest takeaway that you will take from the 6th chapter is “Start investing as early as you can and invest for the long term”
As the author says “Remember, you’re playing for the long term. If the market goes up and down, does this mean you do not invest? NO! It means you need to have a long-term horizon to invest.”
Keep This in Mind
Everyone should not invest, there you go I said it. Because if you’re earning Rs 10,000 monthly then it’s better you first fulfill your needs and focus on making more money.
But if you’re making Rs 30,000 monthly then it makes sense to invest because you can invest.
The 7th Chapter is all about if you’re earning X amount every year then how much to invest.
Now I won’t tell you everything but I will share three examples to give you a clear idea.
- Age 20: If your income is less than Rs 3 Lakh per Annum at the age of 20 then invest 30% of your income. Which could be 70% in mutual funds/stocks and 30% in fixed assets. Avoid taking loans and credit cards.
- Age 40: If your income is between Rs 3 to 9 Lakh per Annum at the age of 40 then invest 30% of your income. Which could be 60% in mutual funds/stocks and 40% in fixed assets. Avoid taking loans and credit cards.
- Age 30: If your income is above Rs 9 Lakh per Annum at the age of 30 then invest 30% of your income. Which could be 75% in mutual funds/stocks and 25% in fixed assets. Take advantage of credit cards and take loans as long as it’s for a home or car.
There you have it, there is nothing more to talk about in this chapter but in the end, I will leave with the author’s words.
“Your financial path is shaped by your age and your income.
Along with what you want in life and your responsibilities.
You have the cheat sheet, but you’re holding the cards.
Only YOU decide how to play them.”
Learn The Smart Way
Always better if you learn from other’s mistakes and don’t repeat the same. It’s also better to take risks early in life, this way, even if you make mistakes, you have enough time to recover.
As the author says “When you’re young, your ability to take risks is higher. Not because you’ve got it all figured out. Because you have time.Time to recover from any damage that may be caused by the risk.”
The 8th Chapter is all about mistakes.
This is a lengthy chapter and has 13 mistakes that you shouldn’t make. So let me summarize all the mistakes in single lines.
- Don’t ignore the inflation
- Always keep a long-term view
- Pay Texas, where you have to.
- Don’t spend money because you show something on Instagram.
- There is nothing called Zero risk, you have to take risk at some point.
- Don’t spend money that you don’t have.
- Don’t take loans where you don’t need to.
- When buying something online, check whether it has hidden costs or not.
- Have multiple income streams, don’t ever rely on one income.
- Always apply the margin of safety everywhere. Hope for the best, expect the worst.
- You can take risks even without hurting someone.
- Investing won’t make you rich in a single year, it will take time.
- The system is designed to make you spend more money whether it is in the form of a countdown ticker on an e-commerce website, loans, or spending money that you don’t even have with credit cards.
Lastly, let’s end this section with the author’s words “The fastest way to become wealthy is to go slow. The earlier you start, the better. The longer your money is invested, the better.”
Why We Do. What We Do
Do you know what is common in all of us, any guesses?
The answer is, wait for it, how we behave.
Morgan Housel puts this very well “Money has a little to do with how smart you are and a lot to do with how you behave. And behavior is hard to teach, even to really smart people.”
If we just observe how people behave in certain situations then we all will be smarter but we’re not because we’re emotional beings.
As Ankur Warikoo says “We decide based on what is easily available. We decide based on what we remember most. The buzz from cafes, social media, and viral news has become our financial compass. We don’t question the reliability of the information.”
This topic has been discussed in lots of books, so I don’t want to waste your time discussing how our behavior influences our decisions. Still, if you’re curious then do read the Psychology of Money by Morgan Housel.
The Last Dance
The last and 10th chapter is all about the mistakes the author has made along with the things he would tell to his 20-year-old version.
He says “What you believe about money will influence everything. Without you even knowing it. It will drive your career choices.
It will have a say in your relationships. It will dictate your emotions. Your worries. It will impact your health.
Your relationship with money will shape your relationship with life.”
The last chapter has about 13 letters that the author would tell to his younger self. So to know all the letters, you have to buy the book.
In simple words, these letters are a kind of summary of the 9 chapters that we have discussed.
I don’t know about you but I love to read the last page of every book I read. So let me share with you the last paragraph of the Make Epic Money.
“Whenever you’re in doubt, bet on the only thing you can bet on.
Life will show you a way.
It’ll all be okay.
You will be okay.”
Make Epic Money Lessons
- When it comes to Investing, always play long-term games.
- Never ever rely on a single income stream, create multiple incomes.
- Create as much Asset as you can and lower the liability as you go along.
- Money won’t give you the happiness that you’re looking for but it will for sure give you the freedom to do the things you always wanted.
- Saving without any goals will make you lose your savings, so set goals.
- Make sure you have health insurance, life insurance, and emergency funds. So they can help you in your hard times.
- Don’t invest money, if you’re not able to fulfill your needs. First, earn money to fulfill your needs, and later when you have extra money, start your investment journey.
- Always better if you learn from other’s mistakes and don’t repeat the same. Life is too short to make mistakes that others have already made.
- Learn how people behave in certain situations, this will give you an idea about what people will do when they face any sort of discomfort in life.
- Before you invest your money, start by investing in yourself. Make yourself healthy, so you can do whatever you want.
Make Epic Money Quotes
“Our beliefs can ruin you financially. Or they can set you up for life. Change your beliefs, change everything.”
“The true purpose of money is NOT to help us buy things. The true purpose of money is to grant us freedom over our time, our choices, and the way we lead our lives.”
“The world sells you a dream. It tells you: Once you start earning a salary, you can become wealthy.”
“It’s Not about Spending Less. It’s about Spending Right.”
“Stock trading is like a Balaji soap opera. There’s drama, excitement, betrayal, and frequent heartbreaks, but you can’t resist tuning in every day.”
“Choose logic over hype. Choose facts over fiction. Every single time.”
“YOLO is a drug. It intoxicates us. Makes us believe that all money earned should be spent. Live for today. You only live once! No, you don’t live only once. You live every day. And you are going to live for a long time.”
Make Epic Money Review
If your age is 15 and you have no idea about Investing, Saving, Emergency Funds, Fixed Assets, Health Insurance, Life Insurance, Credit Cards, and Even Home loans then Make Epic Money is the perfect read for you.
Now, comes the bigger BUT,
If you’re someone who knows what I have mentioned above then there is no need to read the book, you will for sure waste your money along with time.
This is what the author says in the introduction as well.
The Make Epic Money by Ankur Warikoo is a perfect guidebook for someone who is in high school.
The only thing I love about the book is the way the book has been formatted. It’s written in simple English, not a single hard word.
Whoever has formatted the book, congratulations you did a fantastic job. A perfect for the kid who doesn’t like to read books.
Buy Make Epic Money:
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