Hi friends and welcome to this podcast by Angel One.
Doston, if you call yourself a millennial, there are likely some interesting facts about your life that you share with the larger community despite your impeccable individuality and differences with others who were born around the same time as you.
However, millennials ne India mein savings aur investments par ek naya perspective apnaya hai, and have managed to change some long-held beliefs about money, debt, spending and financial planning - while this comes from a visibly different approach to life than their parents, some millennials have struggled to build resilience in their financial lives. Kal main apni friend Saaya se baat kar raha tha, and she was talking about our mutual friend Shivi, jisne Saya ke laptop par coffee spill kar di - and this happened while they were coworking in a cafe!
Shivi was broke, and so was Saya - and while Shivi offered Saya to work on her laptop until she can pay back for her computer, Saya politely refused, and had to ask for a loan from her parents!
Ab doston, accidents can and do happen. Shivi and Saya are very tight friends, and they both wondered as to why they didn’t have the money to buy a new computer right away. And they realized that they are missing out on a crucial part of life - the resilience and the stability that is needed to withstand such accidents and shocks in life.
Another friend of mine, jiska naam Raj hai, was talking about how he didn’t have the money to travel to some beaches that he has been eyeing since college. Raj do saal se employed hai, aur Mumbai mein rehte hue Raj earns 60k a month. Sounds like a decent sum of money, lekin savings banana Raj ka strong hand nahi hai. Raj likes to dine out and he actively spends on improving his digital life by buying apps and subscriptions for digital services.
Kya aapne aise kuch issues apni life mein face kiye hain? It's time for Investing 101 - doston is primer ke saath I promise that you will be able to fulfil some dreams that you have been dreaming for a long time! Toh let’s explore these five strategies, which will help you big time with your finances.
Number 1 - Understand the power of investing
Doston investing might look boring compared to other fun things like dining out for a great experience, ya fir Raj ke digital purchases. Lekin over time, the power of compounding does something magical to your savings. 20th century ke ek famous physicist ne kaha tha ki human race ka exponential function ko na samajh paana ek major shortcoming hai. And this holds true in money matters too! Basically, agar koi bhi cheez ki ek amount ek chote percentage se periodically grow hoti hai, toh it will grow exponentially over time. Same holds for your money - agar aap small amount of savings ko monthly basis par invest karte ho, toh this money will turn into something gigantic by the end of a few years - go check out an investment calculator to see for yourself!
Number 2 - There is a digital savvy way of investing too!
Agar aap investing ko paperwork aur boring conversations se associate karte ho, toh you need to know something - today, investing is as easy as a tap on your smartphone. You can find systematic investment plans, jinme aap apne paise automatically invest kar sakte ho, on a regular basis - without having to even think about it - set, and forget, just like your itunes or spotify subscription, except that here, you will have more money with you at the end of a designated period than you had originally put into it!
Number 3 - Small things add up to something big!
How much do you think before spending a thousand rupees on a dine out? Or a couple hundred rupees to buy a movie ticket, netflix subscription, or your favourite game on play store? I bet not a lot! But if you were to invest a thousand rupees on a monthly basis, you will see it grow into something massive by the end of ten to fifteen years! Don’t underestimate the power of small, regular savings!
Number 4 - Look beyond your bank account!
Waise toh saving money is the first prerequisite to investing, it is equally important to look beyond your bank account for the same. Savings ko bank account mein rakhna, ya fir FDs mein invest karne se you might be able to only beat the inflation. Sounds complicated? Then let’s simplify!
Inflation is basically money ki value ke depreciation ko bolte hain. Remember your parents mentioning how veggies used to cost a fraction of a rupee in their times, and how they cost many rupees now? This, precisely, is inflation at play, my friends - and if you keep your money in the form of cash, you are essentially losing money despite saving it, every second!
Isliye, look at some instruments that will help you do more than just beat the inflation - jaise stocks, systematic investment plans, ELSS, etc. These instruments expose your money to fast growing avenues, like equity markets, real estate and gold and now, even cryptocurrency! Read up on the internet about them, Angel One provides you a library of financial content to make you a vigilant investor, and also to see how your plans and finances can come on the same page.
Number 5 - Budgeting is the key!
Doston you might have recently heard about the Indian government announcing the union budget, right? EK country ko run karne ke liye budget is quintessential - but the same goes for running your own personal finances. Without a budget, even lacs of rupees earned in a month can be spent without you being able to spot where your money went! Iske liye, download a budgeting app to your phone - and its better if you can link your bank account to this app, so that you do not have to log what you spent your money on everytime. When you track your money, your spendings basically go through a filter, which tells you what you spent on, and what remains. This information will bring to your notice, what you are spending the most on, and where you would like to cut back. If you think ki aapke paas save karne ke liye paise nahi hain, toh budgeting will help you dispel this belief.
Toh doston these are a few tips that will help you become resilient enough to withstand the financial shocks that inevitably come in life, but also to really live your dreams! Achcha dreams ke subject par ek aur baat.
If you have been thinking of upgrading your computer to a gaming computer or saving up for a trip abroad, but are unable to see how you will save som much money, then you really need to focus on one single step that will help you get there.
And this single step is to just start, without thinking about how you will make it happen. Yahan par aapko investment calculator help karega. Now imagine ki aapki one month trip ki approximate cost hogi 2 lakhs. Now go to an investment calculator, enter the amount you want to save, and how much you can set aside for your goal every month - or better yet, eveyr week. Iske baad, kuch solid investment instruments ke return rates enter karke dekhen. This will give you an idea of how long it will take for you to get to your desired amount. Ye toh hua simple part, lekin is khayali pulao ko serve kaise karna hai, that is where your first step will come into play. Like I had said, just start with the first step - like starting an SIP of a thousand rupees - and keep repeating. Is tarah, you will be able to reach your goal on autopilot, without having to worry about anything at all. In fact, you will be headed to that trip within a few years, and celebrating the end of lockdowns in style!
Sounds like a plan, right? To me it does! Time to make it a reality, by starting small, but starting strong! Everyone can invest, and so can you - don’t let anyone tell you any different! Angel One wishes you the best on this journey to achieving your dreams! Until we meet next, goodbye from Angel One, and happy investing!