Through the basics

Muhammad Tahir
2 min readOct 23, 2022

Hello, and welcome to another issue of this newsletter. If this newsletter has been beneficial to you, please share.

Today, we go through the basics of personal finance again.

The few things to note and take care of are:

Earn more than you spend

This one looks trivial, but it is very important. Stop trying to impress anyone by spending above your means. Once in a while, you’d feel the urge to overspend, go for it, but not above your means. Taking out loans shouldn’t be how you indulge, find cheaper ways to do so. Admittedly, a better way to phrase this is to spend less than you earn. To be accountable for your spending, you can create a budget. If that sounds too restrictive, write down all your monthly or biweekly spending, and go through them to see how you spend.

Save the difference

Once you can live off less than you make, keep the rest for the future. The future is, to some extent, unpredictable, in numerous ways. Sometimes, the only buffer between a person and unpleasant situations is the money saved. This is an emergency fund.

The emergency fund is used for what the name implies, emergencies. Beyond a certain threshold, the amount of cash or cash equivalent (anything that can be turned into cash quickly and easily) would be too much. At this point, you begin to invest.


This means further multiplying your money without your active participation. At this stage, you combine different assets depending on your goals, personality and time horizon to further help you grow your wealth.

Investing +

At any stage you find yourself, one of the best ways to live is by being true to yourself. Find friends whom you trust and support each other through your journey. Having a good partner, whatever you define good to be (if you decide to find one). People are one of the most invested “assets”. People are not things we own, they simply make life more colourful, meaningful and pleasant to live. Having your people makes life suck less. Invest in relationships. A healthy life should not be taken for granted either.


Originally published at on October 23, 2022.



Muhammad Tahir

writing on personal finance, investing and other ideas. I love food