XIRR is Extended Internal Rate of Return. For most practical purposes, it’s the rate of return you need to compare an investment against a bank fixed deposit.

If you can figure out your asset allocation and re-balance once a year, and if you get that right, you should have a reasonably good investment plan.

Stock trading isn’t making money while you sleep. Typically traders do intra-day trades. Which means the trade begins in the morning when markets open and is done by the time it closes. Nothing happens overnight.

Think of your emergency fund as the umbrella in your backpack. I hope you never have to use it, but it’s important to be prepared.

TLDR: Have as few of these as as possible. Try to keep your finances clean and de-cluttered right from the start.