First of all let me share, what does BLD mean in the title of this post.
B stands for Breakfast
L stands for Lunch
D stands for Dinner
Now my readers may ask, where does BLD stands in the discussion related to personal finance? Before I make any comment, Just look at the picture below.
What do you people interpret from the above image?
There is an old say, Breakfast like a KING, Lunch like a PRINCE & Dinner like a BEGGAR. Can you people recall all the knowledged shared by Doctors and many others for our food habits? How & what should be our Breakfast or Lunch or Dinner? All that gyan is displayed in this one picture. As the old saying goes, ” A Picture is more than the 1000 words.”
Yes I do agree, a picture is more than the 1000 words. So it’s important to have a good, proper Breakfast followed by a little lighter Lunch & finally the very small and easy to digest Dinner. Now compare it with your financial life, the morning time i.e. Breakfast time is the time, when you are young, just into you first job, without any responsibilities, no dependents. This is the time to start working heavily for your future. Invest maximum part of your income to create a corpus which ‘ll help you in future consumption. The good start made by you during this time ‘ll ease out the pressure from your life in later part.
The Lunch time is actually your middle age, when family size is increasing & from 30s to end 40s you are too busy with family, kids, home loan, car loan, education of kids, career of kids. At this point, you need to assessed your situation & still keep on investing a good part of your income. Your Risk taking ability ‘ll be a bit lower So Debt part in your portfolio should increase.
The Dinner time is actually your pre & post retirement years, where your primary aim is to live a healthy (financial) life. The Debt part ‘ll be higher at this time but still you need a support of light Eq. This is also the time when you ‘ll start redeeming the rewards of your initial hard work. Your risk taking ability is very low or near zero at this point of time and preservation of your created capital is of prime importance for you now.
So What’s your view on CORRECT BLD? Please do share in comment section.