Financial Free

 

This Blog features a conversation on The Net Worth Show with Boosan Babu M, a software engineer and finance content creator who shares his journey from earning less than ₹10,000 per month to building a net worth of over ₹5 crore.

Career and Financial Growth 

Salary Progression: Boosan began his IT career in 2013 with a modest salary, but through strategic job switches—including a significant 3x salary jump negotiated after a career realization—his income grew substantially. He highlights that earning more is the most important factor in the early stages of wealth creation.

Savings Rate: A core pillar of his success is a high savings rate, which he consistently kept above 60-70%. He emphasizes that this rate is the primary driver of how quickly one achieves financial independence.

Passive Income: Boosan discusses the importance of having multiple income sources, which he expanded through his YouTube channel, brand deals, and investment returns, mitigating the risk of relying solely on an active salary 

Investment Strategy and Framework-

Foundation: Before investing, one must secure an emergency fund (6 months of expenses), term insurance, and health insurance. He also advises prepaying high-interest loans before aggressively investing in volatile markets 

Core Philosophy: Boosan advocates for a long-term approach, prioritizing fundamentals and valuations over chasing hype or high-risk stocks.

Asset Allocation: His portfolio is diversified across Indian and international equities, debt, gold, and silver. He currently targets roughly 60-65% in equity and uses a staggered approach for both entries and exits to avoid trying to "time the market."

Rebalancing: Rather than following a fixed time-based schedule, he rebalances when his portfolio deviates by 5-10% from his target asset allocation 

Key Takeaways for Beginners

Don't chase trends or "multibagger" stocks with small capital; focus on your primary income source to maximize your investable capital in the early years 

Maintain a long-term perspective—market cycles last for years, and "equity did nothing for 2 years" is often a sign of a stagnant cycle, not a failed asset class.