As a child, I used to save
every coin that I would get my hands on
in this ghullak, a.k.a...Piggy Bank
and write across it what am I saving it for.
It usually used to be for novels.
Because of this, I was labelled in my family as the
Ultimate Saving 'Guru'.
But then, adulthood happened
and I realised that I need to save a lot more
for things that are far more expensive than
the 6th Edition of Harry Potter!
I wouldn't say I am reckless
but as an adult, every time I'd get money
I would have this itch of spending it somewhere
because I did not know how to handle it,
especially when everybody around me was selling me something.
So I read a couple of books, spoke to some financial gurus
and I discovered that I can save a lot
only by making a few changes to my lifestyle
and thanks to those changes
today, I have a house
and I even saved for the future of my family
and today I am going to tell you exactly how!
So it doesn't matter if you are a Student or a Home-maker or a Salaried Employee
the sooner you start, the better.
So in today's video we are going to discover 5 unique ways to save money,
things that you must do on the 1st of every month.
But most importantly, towards the end, I'll give you a Bonus Tip
to ensure that the money you save grows automatically
so that you and your family have a comfortable present and future.
But before that, if you like me or if you like what I am doing
then make sure you hit that 'Like' button.
Let's begin.
Don't take salary loans, avoid taking credit cards, yadda yadda yadda...
I'm not going to bore you with the obvious.
You are an Urban Fighter and I trust that you are smarter than those people
who spend money that they don't have
just to buy the latest phone or 'Limited Edition' hoodie.
So let's dig deeper and discuss the 5 real methods
to save money.
#1: Don't use money as a distraction.
Let me explain.
There was a time when I was not going through the best phase of my life.
On one of those bad days, I went window shopping
and on a well-lit mannequin, I saw this dress
with a price tag that said.....10,000 INR.
I know it's crazzzzzyyyy
and I swear before swiping the card, I hesitated
but I really needed something to make me feel better
and I was hoping that this dress would do it.
The problem is, these days we are spending money
to distract ourselves temporarily
from the stress or the pain that's there in our lives.
That's why the junk food, cigarettes, impulsive shopping
or that expensive cup of coffee
so that we feel a little bit better on a crappy day.
Isn't that correct?
Now, I don't want to sound Kanjoos
but let's do some Maths here.
Suppose you spend Rs. 200 on a distraction everyday.
If you save it instead, then
200 X 30 will give you Rs. 6,000 per month.
If you invest this money somewhere, let's say Mutual Funds
then after 5 years, it will give you 4.9 Lakhs!!
And imagine the travel that you can do with this money!
Hey, I am nobody to give you any advice.
I spent Rs. 10,000 on this piece of cr*p
but now I know that spending money will not solve my problems or my pain.
But I found a way to convert my pain into money
and I'll tell you how in point #5.
#2: Pay Less.
Look, I am not asking you to bargain.
Infact, I find it heartless that people
bargain with local vendors for Rs. 10/-
holding a Rs. 80,000/- phone.
But there are some smart ways to reduce your monthly expenses.
a. Car-Pooling
Whenever you are travelling, use Uber-Pool, Ola-Share
or find somebody in your building who goes to your office.
You will save money, you will save the environment
but most importantly, you will receive all of our blessings...
becase you will reduce traffic.
b. Cook at home.
I know I am asking too much but hear me out.
Rs. 50, Rs. 100 for Breakfast, Rs. 150 Lunch,
Rs. 50 Snacks, Rs. 200 Dinner amounts to...
too much
and I am being lenient with the prices here.
I have despised cooking for 30 years of my life until recently
and you can't believe the amount of money it is saving me now.
Plus, it is easy, healthy and believe it or not
a great stress-buster.
If you want to learn cooking like I did in just 5 days
then check out this video.
I've left the link in the description.
c. Cancel subscriptions that you don't need.
Like any beauty boxes, magazines..
I recently got my cable removed
because a) the news is toxic and
b) the serials insult my intelligence
I mean...what's happening here?!
*May be you won't recognise me today..
but this fly.....is your very own Simar* (Facepalm)
So these were the 3 that I knew of.
I am sure you know of other ways of saving money
like carrying your own bottle, buying in bulk
or squeezing every last bit of that tooth-paste.
So comment and let me know what are your ways of saving money
so that all of us can follow you.
#3: Maintain Records.
Suppose you buy a Mixer Grinder
and it stops working after 1 month.
Now, if you don't have the bill and the warranty card
won't you be wasting money on the repair?
Infact, just yesterday I returned a steel okhli
to a grocery store worth Rs. 340/-
because it turned out to be rusty
and thankfully I had the bill.
Anything money related should be saved and organised.
Not just bank and investment details but also Bills and Warranty Cards
which is why I maintain separate files
for Bills, Bank Stuff and ofcourse..
Warranty Cards
so that I don't pay for the manufacturer's mistakes.
#4: Invest in your Health.
Let's not kid ourselves....You and I are getting old.
And no hospital or medicine can get back a perfectly functional
heart,
brain,
bones,
muscles,
digestive system,
eye si..
Okay, stop.
But do you know what can?
Eating right and Exercising.
Don't lift 100 Kgs.
Just go for a walk,
play badminton, pick up cycling.
Find a workout that you enjoy and that's all it takes.
It will help you in 2 ways...
#1. It will save lakhs on hospital bills and
#2. You will be more productive and eventually, earn more.
#5: Invest in Yourself.
The best use of money is to invest in Self-Development.
But what is Self-Development?
Self-Development is solving what's causing you pain,
it's what stressing you out.
Let me explain.
If you are stressed about your job then instead of spending money on
cigarettes or impulsive shopping
use that money to take courses or attend classes
that will get you your dream job.
If you are stressed about gaining weight
then instead of eating more to forget about it
why not invest it in a workout that you love to do?
I used to be super-stressed at my old job
because I just didn't like it.
So I invested my money in joining public speaking clubs,
attending fitness classes, buying softwares to learn editing
and I updated my skills so that I shift my career.
And I am much happier than I was in my old job.
Isn't that a better use of money rather than using it as a distraction
like we discussed in point #1.
And who knows? May be the passion or the hobby
that you develop, might become your new source of income.
If you want me to make a separate video about
how to find your passion then comment below and let me know.
The best and the worst financial decisions are made on the 1st of every month.
So if you want to save money, then these are the things that you must do on the 1st..
1. Pay your Bills
because you wouldn't want them piling up towards the end of the month
or worse...pay extra as fine.
2. Set aside the amount that you want to save.
If you want to develop financial discipline
then this is something you must do on the 1st.
Now calculate your 'Everyday Kharcha' number.
Let's assume you get Rs. 30,000 per month.
Subtract your expense i.e food, rent, transportation..
Let's assume you are left with Rs. 15,000.
Now subtract the amount you want to save every month. Say it's Rs. 9,000.
Now you are left with Rs. 6000.
Divide that by 30...
which means that you can spend Rs. 200 per day.
So the 'Everyday Kharcha' number is a metric for how much you can indulge.
#4: Impose a Luxury Tax on yourself.
Suppose on a over-stressful day, you went ahead and spent
Rs. 2000 on junk food or alcohol or whatever..
then as a self-imposed Luxury Tax,
add 50%of that amount into the next month's savings.
So next month, Rs. 9,000 + Rs. 1,000 will go into your savings.
This Luxury Tax will keep a tab on your over expenditure
until you form a habit.
Now coming to the Bonus Tip..
but before I tell you that, make sure you 'Subscribe' to my channel
and hit that 'Bell' icon
so that I know you like me..
and also because I make Career and Finance videos every week.
Now what to do to make sure that your money grows?
There are a plethora of investment options available
but before you do any of that,
create an Emergency Fund
which is 4-5 months of your monthly salary
and have it accessible, like in a Liquid Fund or FD.
Do not touch this money unless it's an Emergency.
Now after you have created your Emergency Fund
if you want to know what other investment options are available,
their risks, their returns..
then check out this video.
It has everything you need to know
about getting started on growing your money.
I've left the link in the description.
As a kid, I have seen my family cut corners to make ends meet.
I have even worn used clothes of other kids, who were not a part of my family.
It's okay. I am not ashamed of it.
I was lucky that I had food, clothing and shelter.
Back then, saving money was the only option available.
But now, everybody is trying to sell us something..
food is super delicious
and swiping a card is so easy.
So we are spending a lot more than what we should
hoping that it'll make us happy.
But from what I have experienced,
true happiness is found in..
work,
in family,
even at the end of a workout.
So, invest in that.
On that note, I promise to see you again next week
until then..
If you miss me, you can catch me on Instagram
at @theurbanfight
and don't forget to keep fighting..
The Urban Fight to be Fit!