Tag Archives: financial freedom

Are we Saving it?

Hello Riters, hope you are having a good time, enjoying yourself and making loads of Money. No? Yes? well regardless, these tips will help you grow your wealth. So lets dive in! (Opinion Alert – most of these below are my personal opinion)

5 Tips to Save your Money

  1. Automate your Savings – yes! you need to Automate this. As they say out of sight is out of mind, every first of month or whenever your Income gets credited Automate a recurring deposit to another account that you can’t / won’t access for your expenses. Even if its just 10% of your Income, over time it can grow to a substantial amount which you can later Invest. Remember Save first spend later.
  2. Don’t Shop when you are hungry – Please avoid running to a mart or your favorite restaurant at the very moment you are hungry. Plan it well before or else your mind will be fogged by that juicy extra Guacamole or that Cheese round the corner.
  3. Get your Caffeine fix at home – You may need to avoid daily Chai Point Tea or that Starbucks Coffee as a recurring soul not so satiating. Instead buy a Coffee Maker (Indians out there just get that pan) and have some mouth watering Dark Roast Ethiopian Coffee, and you can get the cost down from few dollars to few cents (150 Rupees to just 20 rupees).
  4. 30 Day Rule – This one is controversial, good to have, not exactly saver but a thumb rule to save on expensive expenditures. Whenever you want to make a big purchase like that Gucci Scarf , sleep on it not one day but full month, yes, unless its peanuts money for you, wait till that luxury is yours, so when you buy it you know you really need it!
  5. Cut those Credit Cards – Stop those Credit bills from drowning you in debt. Only own the card if you can repay it! Yes, if you can’t pay on time, ditch it! This one really depends if you sure can repay within a month go ahead and avail those extra points and benefits, but if you can’t destroy, burn it to grounds or just put it away from your sight.
credit cards

Thank you for reading, if you are already following Two or more of these tips do let us know how is it going. Keep Learning.

Money Matters

Two weeks back we discussed about the Worth of Money where we mentioned things that are above Money, and why they are above Money. Today lets discuss about why Money Matters!, if you haven’t read my previous blog post the Worth of Money i highly encourage you to do so.

Money, means a whole lot of emotions to many of us. Often times we either avoid the topic or doesn’t discuss thinking what others will think. Majority of us have associated the negative emotions like Greed, Lust, Selfishness with Money. The way majority think about Money is also the reason why majority lacks it. Today we urge you to think like Minority.

Let us think of Money as Freedom, Money as a Tool, Money as a Servant not just for you but also for your loved ones. Make Money a positive emotion and wealth will follow you. That said, I am not saying Money doesn’t make a few of us blind, and force us to do even the gruesome crimes like murder, rape etc. But before criticizing Money lets not forget it is just a Tool, And a Tool is as good as the person using it. All Money do is give you the Power, and the Freedom of Choice. How you use this power or freedom is totally up to you. You can use Money to give back to the society, or you can use it to further exploit the society. Just like you holding the cash have the choice where, how and when to spend.

Most of us live paycheck to paycheck, and are a few paychecks away from insolvency. Some of us are already broke and are spending way above the means i.e. we earn 100 dollars and spend 110 (this situation is worse in some countries than other). The point is many of us lack financial literacy, because it isn’t taught in any class or anywhere in this professional world! The Education system is designed in a way to not let you be free but instead follow the instructions. It doesn’t teach you how to think, but what to think. That is why you need to take control in your hand. You need to switch gears, or it will be too late before you reach the destination. The first step to be Financially Literate is to understand the financial mean – the Money. So, lets discuss why Money Matters.

5 reasons why Money Matters –

1.Basic NeedsMoney help you build a shelter, buy some clothes and get food on your plate. Without these you pretty much can’t survive.

2.Dream Executor Money can help you execute your dreams. It give wings to your desire. You want to be a pilot, go enroll in a University. You want to be a hotelier go own a Hotel. You can also start a Business of your choice, without the headache of getting it the required fund, because even if you are not funding it fully with money comes the networking, the contacts, the people whom you can ask to invest. With proper funding dreams get traction in the physical world.

3.As a Fuel – Money act as a fuel for the causes you care about. You can start a project or a movement to help the needy, the weak or the underprivileged. Money is not just for the self it can also help fuel your selfless desire, and things you truly care about.

4.Gives a ChoiceMoney gives you an opportunity to choose what you like. Think for a second, Did you buy a car you like or the one you had to? Did you buy the watch you always wanted or the one you just had to? Did you buy your dream house or the one you can afford? With enough Money you can afford that Dream Car you always wanted, or the Mansion you always dreamed about. Money can give you access to all the exclusive & luxury items.

5. To achieve the highest self Money helps you live with abundance & prosperity, true to your purpose. Your consciousness matters! With Money you can spread the consciousness, open up your heart, and feel the bliss, spreading joy everywhere.

Still not convinced, just imagine the smile you can give to a child, buy just buying them a little balloon. So next time you think about MONEY, choose your words wisely.

Thank You Riters, I hope you are enjoying this beautiful Sunday with your loved ones. Like if you liked this post, follow us and do check some of the tips and tricks to financial freedom.

A Duty of Care

Welcome everybody, today we are talking about ‘Duty’ [starts firing – gun shots everywhere], no no hold-on not ‘Call of Duty’, oh no!

Lets talk about your Duty towards your loved ones – ‘Insurance’, specifically ‘Life Insurance‘.

In Layman terms, Insurance is something people buy that protects themselves from losing money in case of an unfortunate event. Be it ‘Car Insurance’ that insures your car against any potential damage, or ‘Life Insurance’ that insures you that your nominee will be paid in case of your demise.

Like everything in life, it too comes with a cost, ‘Premium’ – an amount to be paid (often monthly). But that can be seen as a small price to be paid for the mental peace & financial security of your loved ones. Life insurance = financial security for nominees in case of death of policy holder and Financial security = fulfillment of the family’s financial needs.

Now Life Insurance are broadly of two types – Term Insurance & Endowment (if you wish to read more about other types of Insurance you can check the link here). Endowment is something where policy holder get a particular set amount on maturity, while Term Insurance is a pure Insurance policy where policy holders’ nominee gets a fixed amount on the unfortunate event of policy holders’ demise.

This is where it gets interesting no Insurance Agent advertises or sell you Term Insurance, while everyone will pitch in for an Endowment stating it to be an Investment / Saving Option. So are they right about it, or are they simply doing it for their cut aka commission? Well yes, its in their favor!, Endowment plans charge a hefty amount in premiums and a huge portion of it goes to insurance agents as commissions and administrative costs (read more here about things Agent never tell you)

Lets discuss about the benefits of Term Insurance over Endowment, why you may need one? and also I hope by the end of this blog post you will know Term Insurance is the only real Life Insurance.

1. Premium aka the priceIn Term Insurance you can get the same cover as Endowment at a much lower premium, for example – If you are a smoker male in your late 20s, you can get a cover of 1 crore by paying INR 1500 every month for 30 years. while you get the same cover of 1 crore if you pay over INR 10,000 every month for 30 years for an Endowment plan, around 7 times the price compared to Term insurance. Think it this way, you end up saving around 6 times the premium (i.e. 30 lacs in this case), if you go for a Term Insurance. Well yes, you won’t get anything on maturity if you are still alive but nevertheless its a life insurance it meant to be like that, why not invest the cash you saved on a better asset! Buying Term Insurance in above scenario saving around 8.5k per month, if you invest the same amount in Stock Market and get an average market return of 10% annually you can make around 2 crore, twice the amount you get on maturity from an Endowment plan. Isn’t it cool? That said I am not promoting one thing over the other, all I want to say don’t listen to a random agent or fake financial gurus be it offline or online, do your own due diligence before Investing/Insuring.

2. Sum assuredIn Term Insurance you get a sum assured way higher compared to an Endowment plan for the same amount of premium.  As a thumb rule, you are allowed to buy cover of up to 20 times your annual income (cover ranging from 10 lakh to 20 crore). Now, thing to keep in mind you will only be paid the promised amount in case of your death during the policy tenure (after all its a insurance against your life).

3. Features / payout options – Term Insurance provide you flexibility when it comes to the pay-out the nominee receives the sum assured in lump sum, equal installments or a combination on the death of the policy holder during the policy tenure. The policyholder has option to customize the payout based on their family needs. In an endowment plan, the payout is lump sum either on the death of the policyholder or as a maturity benefit on completion of the policy term.

Above are the major benefits, now when it comes to buying a Term plan there are certain things you need to take care of – Coverage, Policy Duration, Features of Plan, Premium Affordability to name a few. To know more about the same you may wish to read an article here or here.

Finally if you are wondering where to avail a plan, you can consider checking out policybazaar.com and you may probably need to do your own due diligence. In the end if you are left with the extra cash and considering to Invest read our blog post here, and follow us for more tips & tricks on how to Manage Money and Invest Wisely for Financial Freedom.

Thank you Readers

The Rich Way

7 Things that Rich do different than Poor. Welcome on-board, lets help you put that extra buck in your pocket.

  1. Passive Income – Rich earn even in their sleep. Yes, they have a source of Income that puts Money constantly into their pocket even when they are not working. Passive Income of 1000 INR is worth more than 10,000 INR, how?, just imagine the time saved and the freedom gained. After all wealth is for ones Financial Freedom. One source of passive Income is by buying stocks that pays you dividends regularly (after every quarter or so). You can start with a small investment, all you need to do is open a Demat account with a brokerage like Zerodha and take it from there (check out our blog post on how to avoid investment mistake before investing, also follow this space for more tips and tricks)
  2. Keeping money is harder than making – Money management is not easy. The expenditure for majority of people grow proportionally with their Income. This is also the reason why almost all lottery winners end up spending what they have won. The urge to spend the money to show Rich than to be Rich is strong. Rich definitely know better Money Management than Poor. Once you made your first crore to make the second all you need to do is replicate. But how to save & invest and let your Money grow on its own is not something majority understands.
  3. Focus on Increasing income not cutting the cost – Yes, you heard it right. Rich don’t try cut the cost in small things. Majority will walk an extra mile saving cost rather than focusing on earning more. Instead of cutting cost every now & than, we urge you to first think like Minority and Increase your Income, so that you can afford all the nice things in your life. How?, May be learn a new skill that pays you more, or do some side hustle that help put some extra cash in your pocket.
  4. Over 50% of Rich earnings go to investments – Yes, Invest like crazy! If you want to be wealthy, you need to have a tight grasp on your savings & investments. You need to be able to park enough money (the more the better) in different assets. You may diversify your portfolio in assets like Gold, Real Estate and Stocks. If you want some quick tips on Investment do check out our very first blog here. Almost all wealthy people and brands invest more than 50% of their earnings. If you are beginner and don’t know where to start you may like to read our blog post here.
  5. Don’t borrow Money if it is not to make Money – This rule applies strictly for the elites. Rich don’t borrow unless the money helps them make more Money. They won’t pay bank the interest unless they make their cut. By borrowing money like majority to finance your new house or buy a new car your making the Bank & Bankers wealthy while putting yourself in debt. Debt not taken for the assets that put Money in your pocket is useless. So think whom you want to make rich, yourself? or them?
  6. Multiple Streams of Income – To be wealthy you definitely need to have the money flowing in through multiple ways. A side hustle, a full time Business or job, a passive source of Income; you need to work hard to at least grow the 3 sources of Income. Multiple Source of Income also keeps you portfolio hedge against a Crisis. You are less likely to be victim of a Crisis, and more likely to be at peace. An Online side hustle, free lancing etc may come handy.
  7. Invest in self – Investing in self is one of the most underrated advice. Ever wondered why Successful people read more than an average person?, the answer is simple your knowledge = future returns, the more skills you know the greater the opportunity to multiply your Money. This is the same reason why a Businessman earns more than an employee, they have figured out a solution, they know the full breadth of the System and not just a single piece of the puzzle like the employee who may be specialized on a single task. So learn a new skill, or grab a book, even better listen to two free books of your choice here at Audible.

Lastly but not the least, if you want to know more definitely check out this video by Alux.com. This article is inspired by the same. While the opinion above is completely ours, the primary source nevertheless remains this video.

Thank you for reading. Do follow us for more. Together lets be Financially Free.

Caution! Dalal Street Ahead

Yes, you heard it right, there are things that you should avoid, no matter what its a Big No. Like Trespassing Area 51, or buying the stock of your favorite Pizza Chain. Just Kidding, there is more to it, today lets talk Stocks.

When it comes to Stock Market Investing you should do your due diligence before Investing and never listen to any random guy online, but trust me you can listen this random guy (me) on this one.

Below are the 5 mistakes every Investors should be avoid –

  1. FOMO (Fear of Missing Out) – As the name suggest it refers to the Fear of missing out on the Opportunity. It is one of most common mistake that a new Investor makes. Basically when you see a stock rally you worry that you might miss the boat and hence try to invest as much as you can to get your share of the pie. But often times it leads to unnecessary investment, and at times you end up buying stock way too higher than its intrinsic value.
  2. Panic Selling – Selling a stock when its price is low i.e. in a Bear Market. When a stock is undergoing correction or has been the victim of some bad speculations, we as an Investor turn on our Panic mode and again let the emotions rule our judgement resulting into selling of the stock when it is undervalued.
  3. Trying to Time the Market – The common mistake every Investor make is trying hard to time the Market and failing to do so (which almost everybody do). Rather a good Investment strategy is to invest consistently for the long terms and be patient about your Investments. Remember nobody can accurately time the Market, not even Warren Buffet.
  4. Sunk Cost Fallacy Tendency to Invest in the fallen stock in order to recover the money invested. For example – I bought xyz corp share for INR 100 and the price fell to INR 50 in few weeks, without rethinking my strategy, doing research/analysis, I kept on buying more and more shares in order to average out the cost to be able to reap the benefits of future rise, But the future rise may never come.
  5. Failing to Diversify – One mistake every investor should avoid in long run is to invest only in a single sector or a very few stocks. One should diversify his/her portfolio in order to reduce the risk by investing in multiple sector so that if there is a Crisis or the Investment value goes down across one sector the other is there to back it up, hedging against the risk.

Greed, Fear, lack of Patience and often the lack of Understanding of the Investment is something we all should avoid as an Investor. A Investment should be done with all due diligence and rationality. Emotions, get rich quick schemes and lack of understanding is not good for any Investment. It is something I learnt the hard way, I too have committed to a few of the above mistakes. One thing you should always remember in the long run Market always tend to go up and hence by all means one should avoid emotions rule the decision making process. And if you are new to Investment, it is always a better idea to start with some sort of Index fund in order to lower the risk from Market fluctuations.

Bonus Content – One good Investment Strategy to follow during crisis like Covid is to be a Nibbler i.e. to keep buying small bites of a great company slowly as its share price fall, given it has enough cash reserve to survive the pandemic.

That’s all folks. Until next time, stay healthy, stay happy and keep Investing!

And if you are new to Investment you can consider opening a Demat Account at a brokerage firm like Zerodha.