3 Golden Rules for Saving Money in 2021 | CA Rachana Ranade - YouTube

Hi guys, CA Rachana Ranade here and I welcome  you all to another lecture, which is about  

my new year resolution for 2021. Let me guess  what your new year resolutions can be, um it  

could be getting up at 6 am, it could be working  out every day, it could be eating healthy food.  

Well, I think none of them is going to go long for  more than two or three days. So let me give you  

simpler options. You can either subscribe to my  channel, or at least just hit the like button. So,  

my new year resolution for 2021 took a specific  shape, when I checked out my channel statistics.  

If you can see here, the female subscribers are  barely 12 and a half percent. That's even a little  

bit less than that. So, I thought why not have  a specific goal, a specific focus of increasing  

the financial literacy amongst women, and I feel  my resolution can be met with your support. So,  

please show my videos to your female friends,  who will then start their journey of financial  

education, right. So, today what we are going to  learn in this video is that we are going to kick  

start our 2021 year just two three days before it  actually starts, by understanding, three golden  

rules, of how you can start your savings journey,  and in turn start your investment journey.

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 okay I can't afford that.  

Do you really need to feel awkward, no it  is absolutely okay 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 special especially for teenagers or  those who are in their early 20s. Let's say your  

plan is to save 10 000. Let's say your plan is to  have your very first investment in stock market  

and that's the reason why you're saving. Tell them  your goal, 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 see after one year on first of January 2022  you show them your demat account. You show them  

that, look I had sacrificed something, to earn  something. They will really feel proud of you.  

Just ask yourself is it okay if you don't have  one or two more pictures on Instagram at some  

exotic locations? It's absolutely okay guys. Just  remember one thing, it's always better to be rich,  

rather than just look rich. 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 Rachana,  

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.  

When I actually hear them say all these things,  I really try to wonder, okay, understood that 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. So to 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,  

okay. So let's understand this, number  one what was the trigger? Trigger was that  

my friend was feeling very low and then she  said that to have a reward of feeling happy  

I should have a routine of shopping, okay. 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 do shopping the moment you are feeling  low. Now let's try to have alternate options for  

that. Try to call up your friends whom we 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. Change the routine.  

That's where you can save more and spend less.  Golden rule number three is the cost per use test.  

Now you might be wondering what tests Rachana is  coming up with today. These are interesting tests  

guys, listen to me. This is a story about me which  happened almost three four years ago, when I had  

decided to go to Europe for a tour, okay. When  I was searching on the internet, I came across  

lovely pictures of Europe uh many many exotic  locations, Switzerland So whatever, okay, and then  

I thought that oh my god I need to have an amazing  camera and guess what I got... say cheese...

Well, but when I got this camera this camera cost  me roughly 50000 rupees. I might have used this  

camera for like uh three times till date and I I  don't remember last time when I actually used it.  

So, now you can imagine this, 50000 rupees camera,  I’ve used it three times. I’m not sure when I’m  

going to use it after today. So, this is like  17000 rupees cost per use. 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 three thousand  rupees, 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  comment section about at least one thing which is  

very similar to what wrong decision I have taken.  Let me know in the comment section I would be  

really happy to read about all these things. Oops!  wait, let me also give you a very important bonus  

tip. In the entire video 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,  okay. Assume that you are eight or ten friends and  

easily the minimum bill that you're going to shell  out money for is going to be 2500 rupees easily.  

So, now what you have done, you have splurged  2500, it's okay, I’m not saying that you should  

not save even spend even one rupee at a  hotel. It's okay, it's okay to spend also,  

but then make it a point that whatever  you're splurging, whatever you're spending,  

that amount, at least minimum that much  of amount, should go in your investments,  

okay. 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. Just to give you a fun fact, had you taken  this same thought process 10 years ago, assume 10  

years ago you alone went to a domino store and you  bought like one pizza for 250 rupees. At that time  

domino's share was around 250 rupees. 250 rupee  share 10 years ago, today the share is at 2500  

rupees. That small cake or that small size of  domino's pizza would have been 10 times bigger,  

okay. So, have that same thought process. Assume  you invest 2500 today, it can happen that it grows  

may not be 10 per 10 times after 10 years, at  least five times after after 10 years, that's  

possible. So make it a point that you invest an  equivalent amount of how much you are spending.  

A small request, please share this video  with your better halves or with your kids  

or with your family friends, especially  with those who are in their teen ages  

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, but dreaming big.  That's how you can help me to achieve  

my new year resolution for 2021. Till then  take care bye bye and also Happy New Year