DUBAI Dubai-based financial coach and international speaker Sanjay Tolani has released a new book aimed at offering residents a generic guide to managing money through the various stages of life.
The book, which is titled 28,000 referring to the average lifespan of a person, takes the reader through what Tolani calls the circle of life: 0-20 where the focus is on education and play, 20 to 40 where one is settling down with a job, car, house, marriage and kids, 40 to 60 when the emphasis shifts to children’s higher education, a second house etc and the last leg of 60-80 when one retires.
“If you’re anywhere in your 30s or 40s, then you’re already almost halfway down the magic number of 28,000. Which means you have 14,000 days to live and just 7,000 days to earn,” reasons Tolani, who happens to be the youngest member of the Million Dollar Round Table of the US, a global body of insurance and financial professionals.
According to him, children should be encouraged to make and save money from an early age, be it encouraging them to babysit, pet-sit, do household chores, or take computer classes for the elderly. Similarly, the saving mantras revolve round maintaining piggy banks, diary entries on expenses, creation of budgets and exposure to bank affairs. “Money is a habit that is learned over the years, so don’t fool yourself that one day when your child is older, he will automatically learn to handle money,” writes Tolani.
The second chapter dwells on the “50/20/30 rule” where Tolani says not more than 50 per cent of one’s earnings should go towards essential expenses, while at least 20 per cent should be set aside to build a financial base. “This means life insurance, emergency funds, retirement funds, children’s savings and other untouchable long-term savings.”
