Hey,
If your bank account feels like a leaky bucket, it’s not always about earning more. It’s about building a money system that works automatically.
Former investment banker Nisha Shaw ditched a 6-figure career to teach simple, guilt-free money habits. Here’s her practical blueprint for financial freedom.
The 65-20-15 Rule — Your Money’s New GPS
Split your after-tax income into three buckets:
65% – Essentials
Rent/mortgage, utilities, groceries, debt minimums.
(High cost of living? You can stretch this to 70–75% temporarily.)20% – Fun Spending
Hobbies, dining out, concerts, travel—guilt-free enjoyment.15% – Future Self
Savings, investments, extra debt payments.
Can only do 2–3% now? Start there. Consistency is king.
The 4-Step Financial Foundation
Step 1 – Peace of Mind Fund
Save 1 month of core expenses. This small cushion puts you ahead of 59% of Americans and 30% of UK residents.
Step 2 – Kill High-Interest Debt
Any debt over 8% interest (like credit cards) is eating your future. Pay minimums on all debts, then tackle the highest rate first.
Step 3 – Build an Emergency Buffer
Stable job? Save 3 months of expenses.
Unpredictable income? Go for 6 months. Vanguard research shows this boosts emotional well-being more than a $200k salary.
Step 4 – Invest for Growth,Saving alone won’t beat inflation.
Use tax-advantaged accounts (401k, Roth IRA, ISA).
Go for low-cost index funds (like S&P 500) or target-date retirement funds.
Smart Money Moves from Nisha
Rent vs. Buy: If renting is cheaper, invest the difference instead of rushing to buy.
Passive Income: Investing beats starting a side hustle you hate.
Credit Cards: Great for rewards—terrible if you carry a balance.
Opportunity Cost: A £100 lunch today could mean £5,000 less in 40 years at 10% returns.
Income Growth: Switching jobs often beats staying loyal (up to 50% lifetime earnings difference).
Mindset That Builds Wealth
“If you give someone else the power to feed you, you give them the power to starve you.” – Nisha Shaw
Don’t rely on one income stream.
Avoid lifestyle creep—spend less than your income growth.
Stay curious about your money—avoid the "ostrich effect" of ignoring problems.
Quick Wins for This Week
Track your spending with a bank app (no spreadsheets needed).
Price-check your car—consider buying 3–5 years old to avoid depreciation.
Talk money early with partners or friends you share expenses with.
Financial freedom is not about cutting every latte—it’s about building a system where your money works for you. Start small, stick with it, and watch your stress shrink while your net worth grows.
Take care,
Ahammed Yousuf