3 Golden Rules for Saving Money

00:00:05 Speaker 1: Hi guys here and I welcome you all to another lecture. So today, what we are going to learn is that understanding three golden rules of how you can start your savings journey and in turn start your investment journey. 00:00:20 Speaker 1: So let's start with our first golden rule. The first golden rule is to go through a friendship test. Now you might be wondering what is this friendship test? Let me give you a simple example. It might be possible that many of your friends love to go to exotic outings or they always love to go to big budget hotels. It might be possible that for you, these big budget hotels might not suit your pocket every single time and sometimes it feels really awkward for you to tell them that. Ok, I can't afford that. 00:00:49 Speaker 1: Do you really need to feel awkward? No, it is absolutely ok. To tell them that I might not be able to come to this hotel today because it is not in my plan right now. Tell them clearly what your plan is. Let's say your plan is to save 10,000 by the end of this year. This is especially for teenagers. Or those who are in their early twenties. Let's say your plan is to save 10,000. Let's say your plan is to have your very first investment in the stock market. And that's the reason why you're saving. Tell them your goal. 00:01:17 Speaker 1: If they are able to understand, then only they are your true friends. If not, you know who to stay with, whom not to stay with. Right. Let's say, after one year on first of January 2022 you show them your B A T account, you show them that. Look, I had sacrificed something to earn something. They will really feel proud of. You. 00:01:39 Speaker 1: Just ask yourself, is it OK if you don't have one or two more pictures on Instagram at some exotic locations. It's absolutely OK. Guys just remember one thing. It's always better to be rich rather than just look rich. 00:01:54 Speaker 1: Golden rule number two is to undergo a binge shopping test. Now, what is this? I'll tell you quickly. I know many of my female friends who say that Rana today we went shopping, we were feeling very low, you know, but when we had two bags full of shopping material, that's where we felt that. Yes. Now I'm in a happy state of mind 00:02:14 Speaker 1: when I actually hear them say all these things, I really try to wonder, OK, understood that. It, it is apparently said that when you shop some happy hormone is released and you feel better. Agreed but then is there some other way where you can actually cut down on these expenses and still feel better? 00:02:32 Speaker 1: So take a specific reference of this, I had read a book on habits when it mentions that a human habit is, is went through or undergoes three typical points. What are the three typical points? Number one, there is a trigger. Number two, there is a routine and number three, there is a reward. Ok? So let's understand this. Number one, what was the trigger trigger? Was that? My friend was feeling very low. And then she, she said that to have a reward of feeling happy. I should have a routine of shopping. Ok? 00:03:02 Speaker 1: So now let's understand, we have to keep that reward which will be same reward should be that you should feel happy. That should be your reward. What is the trigger trigger is that you are feeling low? What needs to be changed? That routine needs to be changed right now. What is your routine? You go to shopping the moment you're feeling low. Now let's try to have alternate options for that. 00:03:22 Speaker 1: Try to call up your friends who you have not talked for. Like let's say past one month and see if you feel better. Possibility. Number two, what I do is I just take out my car. I listen to my favorite music. I go out for a ride. I come back like after half an hour, I feel very happy. Try out to play a sport and see if you can feel happy. So try out these alternate routines. So as I mentioned, let the trigger be same, let the reward be same. 00:03:48 Speaker 1: Change the routine. That's where you can save more and spend less. 00:03:54 Speaker 1: Golden rule. Number three is the cost per use test. Now, you might be wondering what tests Rachna is coming up with today. These are interesting tests. Guys. Listen to me. 00:04:04 Speaker 1: This is a story about me which happened almost 34 years ago when I had decided to go for a tour. Ok. When I was searching on the internet, I came across lovely pictures of Europe, many, many exotic locations, Switzerland, so on da da da da whatever. OK. And then I thought that, oh my God, I need to have an amazing camera. So she's well. But when I got this camera, this camera cost me roughly ₹50,000. 00:04:34 Speaker 1: I might have used this camera for like uh three times to date. And I don't remember last time when I actually used it. So now you can imagine this ₹50,000 camera. I've used it three times. I'm not sure when I'm going to use it after today. So this is like ₹17,000 cost per use. 00:04:55 Speaker 1: Isn't that crazy? Now, when I look back, I feel that had I brought a good camera on rent. It could have cost me just two or ₹3000 right? So it's very, very important for you to understand that before you go on shopping to buy some very expensive products, try to check how many times are you going to really use it so that you can definitely save on a good amount of spending guys. I want you all to write in the comments section about at least one thing which is very similar to what wrong decision I have taken. 00:05:27 Speaker 1: Oops, wait, let me also give you a very important bonus tip. We talked about how to save. Let's understand how and how much to invest. So let's take a simple scenario for this. Assume it's your birthday party and you have invited a few friends and you go out to eat Domino's pizza. Ok? 00:05:45 Speaker 1: Assume that you are eight or 10 friends and easily the minimum bill that you are going to shell out money for is going to be ₹2500 easily. 00:05:54 Speaker 1: So now what you have done, you have splurged 2500. It's ok. I'm not saying that you should not save even spend even ₹1 at a hotel. It's ok. It's ok to spend also. But then make it a point that whatever you are splurging whatever you're spending that amount, at least minimum, that much of amount should go in your investments. Ok. So just to give you an equivalent example, assume 2500 you spent on a pizza party, why not invest 2500 in the same share, which is of Jubilant Food Works, which is Domino's Pizza, right? 00:06:22 Speaker 1: Just to give you a fun fact. Had you taken the same thought process 10 years ago? 00:06:28 Speaker 1: Assume 10 years ago, you alone went to a Domino's store and you bought like one pizza for 2 ₹50. At that time, Domino's share was around 2 ₹50.02 ₹50 share 10 years ago. Today, the share is at ₹2500. That small cake or that small size of Domino's pizza would have been 10 times bigger. Ok, so have that same thought process. Assume you invest 2500 today, 00:06:54 Speaker 1: it can happen that it grows may not be 10 times after 10 years, at least five times after 10 years. That's possible. So make it a point that you invest an equivalent amount of how much you are spending 00:07:08 Speaker 1: a small request. Please share this video with your better house or with your kids or with your family friends, especially with those who are in their teenagers or maybe in their early twenties. Help them to understand some basic golden rules of saving, help them understand how they can start their investment journey by saving small, by investing small or dreaming big. Tell them take care. Bye bye.