Starting this post with good news. BasuNivesh which started it’s journey on 9th December 2011, have crossed 10,000 hits within the span of 6 months !!!. Thanks for all who visited and encouraged me for this milestone. Hope you support me in future too.
It is often believed that to start for investing means first need to check your affordability then start investing. That thinking and deciding process usually may takes from days to years. Which will automatically harm your financial goals. In simple terms “Investment” also called as sacrificing your current expenses for the better future expenses. For example, if you are living a lavishing life style (Which Financial Planners need to say because you never say you have lavishing life style :)) and need not thinking at this stage about your retirement, will automatically spoil your retirement life. Instead with few simple sacrifices of current expenses if you start to invest for your retirement at the earliest then you can enjoy planned and dignified retirement life without depending on others. So let us see few examples how with small sacrifices you can build your corpus for our financial goals.
1) Avoiding your weekly family dinner in Hotels-I consider you have family of four members where you, your spouse and two kids are staying together and usually enjoy your weekends by having dinner in hotels on every weekend. Approximately it may cost you around Rs.1,000 for each week (I am taking approximate cost vegetarian food as I am being veggie dont know the costs of non-vegetarian items :)) . What we can do by sacrificing dinner instead of every weekend to monthly once? You can approximately save around Rs.2,500 to Rs.3,000. If you start to invest this Rs.2,500 in any normal equity oriented mutual fund which will fetch you around 12% CAGR for 25 years term then your accumulated amount will be Rs. 46,97,116 (Aprox half crore) !!!! I am not saying here to totally avoid your dinner outing. I am just giving you the figure, with just avoiding every weekend dinner in hotels if you plan for monthly then how much you can accumulate.
2) Quit Smoking-Smokers usually know the health risk attached with this habit. But unable to quit it as it became habit for them. But with strong commitments you can quit it and by this you can save your health as well as money. Let us take one example of person who’s daily expenses on smoking is around Rs.50, so monthly it will be around Rs.1,500. If you quit or started to lower your smoking habit and investing the same then you can accumulate around Rs.52,42,446 after 30 yrs with the approximate return of 12% CAGR. Half Crore within 30 years by quitting one of your bad habit !!! 🙂
3) Using Bike instead of Car-For few people it became a necessary thing to use car even when they are travelling lone. It is imperative to go by car when you have few members with you. But when you are going lone and instead of using car if you use your bike or go by public transport then you are indirectly reducing the noise and air pollution of your city. Also indirectly you are saving few bucks which can atleast can be used your current educational expenses of your kids.
4) Avoiding unnecessary talk through phone-In today’s trend of mobile savvy world where you will get new versions of handsets each day, it became a habit to change your handsets like changing your clothes daily. But have you ever thought what will be the value when you sell the same handset next day?? It will depreciate instead appreciation. It is not my recommendation to go with high featured handsets. But purchase the sets where you will get the features what you daily use. In this way you can save the wastage of money. Also by just avoiding few unnecessary calls, monthly you can save few hundreds of rupees. With that saving you can easily take Term Insurance for you life and protect your family’s finance in the case of your untoward demise.
5) Electricity Saving-With using the electric power when you actually need and switching off the instruments when not in use, you not only save the electrical energy but also save few bucks which again make you think how you can utilize this saved amount.
I used the 4th and 5th example particularly for the people who argue Term Insurance is waste product as they can’t get returns during their life time. But with just simple saving techniques of your life you can easily cover your life.
Eventhough above examples which I mentioned looks like funny things but when you actually work out and follow the systematic saving and investing approach, you can easily accumulate the good amount of wealth. Hope from now onward you think twice and act. It is not my intention to make you “KANJOOS”, but just making you aware of easy steps of wealth creations. Also with above mentioned examples you not only creating few bucks of savings but also contributing to society, environment and to your health.