I have written my last blog post about why investment and saving is necessary and the same has been explained by a short movie “One Idiot” . I don’t know why but this movie has left a deep impact on me. I am 100% sure that saving and investment is utmost necessary, I should save, I should invest, my portfolio should be diversified this way and that way and all but These all are only talks since July 2011. I am just thinking, thinking and thinking from July 2011 when I started earning money online.
Though my majority of the money has been invested in real estate only and money is growing also at rapid rate, but here I am talking about proper and systematic planning of your income. How much you should spend on which things and all ! I don’t have any idea, How much money I got and where they were spend. Each and every time when I feel lack of cash, I just withdraw it from ATM ! 😛 This is a pathetic behavior towards spending money (Of which I am aware of).
I have some other habits also towards spending money. When I watched this movie, I was just shocked like !” What the hell I am doing..? I know these are wrong things then also I am doing it? ” So I quickly took up a pen and paper and started making a list of actions to be taken.
#1 : Materialize the Coins :
I don’t this is a good habit or bad but I never have coins in my wallets or pockets. So when I buy anything, the counter person give me change. At the end of the day when I come to my room I keep aside all those coins and the next day again I keep my pocket empty..! No Coins..! I think, I have accumulated more than 3,000/- from these coins since May 2009 which are lying in my hostel locker 🙂 I decided to give those coins to shopkeeper who requires it in return of currency note. Like in Surat, If you give 90 Rs coins then they will give you 100 Rs currency note. 10 Rs is commission …! So this will beat my inflation cost 🙂 😛
#2 : Open a Demat Account :
For Investing money, I evaluated mutual funds, SIPs, Bonds, FDs and much more, but finally I end up with holding stocks in demat account. I just need to buy it after proper research for which I am reading hard. So, I decided to open a demat account for buying stocks for longterm. I am planning to hold 54,000 Rs stocks by the End of 2013. So, I will open that account with in this week it self. 🙂
#3 : Learn Hard ! “Akkal ka Laddu Khaao” :
In that movie, the idiots says, “Akkal ka Laddu Khaao” ( Nourish your Knowledge ). That’s true. Unless and until you in a learning mode, you will not make a leap. This apply to me also. There is no Pen Drive which can copy some data to our mind and we can use it. For that we need to invest time and money for a particular thing, and That’s what I decided. I will read top 5 books on investing this year. In investing also, Technical Analysis is not in my preference though I will get idea of it, but I will focus more on Value Investing. I found some wonderful guides on Value Investing. Safal Niveshak is a good platform to learn investing. I am also starting from that one only. I attended one workshop also by Safal Niveshak.
#4 : Planned my Inflows and Outflows :
I just prepared my whole year expected inflows and out flow. What I did is, I figured out what will be my estimated minimum income, then I set a goal for investing and saving amount. Next, I distributed that amount monthly then I allocated my income to expenses. This gave me boundary limits for spending money on specific things like Patrol, Food, Cloths, Parties, Doodads Etc . Now, at this time, I have clear idea, How much fund I wanted in a whole year and when ? What if I over spend on somethings ? etc. This gave me a confidence and I am out of some sort of worry which persist now and then about money.
#5 : Records of Daily Expense :
I think, This is useful because from last 3.5 years I just kept on spending money. I don’t have any records like how much I paid for tuition fees, Institute Fees, Patrol Exp, Food Exp, Parties and outings, Cloths, Mobiles, Internet and much more..! From last 1 year, Each and every night I had dinner in some restaurant because I don’t like hostel mesh food. I spent like anything after eating in this 3.5 years and ruined my health as well 😛 Now I want to cut down all those exp and for that I need to analyse my exp pattern and this will help me..! for sure..!
So, These are some steps which I decided to take and I hope this will work out well. I am planning to share my stock holding on my blog and share my view why I invested in particular stocks. I will also update how daily expense records made me stop spending money on particular thing.
If you have any suggestion please comment below. Thanks 🙂