Personal Finance & Building Decade for youths- I

 Personal Finance & Building Decade- I

“Beware of little expenses; a small leak will sink a great ship.”

Hello readers,

In this article you are going to read about personal finance management.

In personal finance management we are talking about how you can make roadmap for your stable future. Before that I want to give you my short intro.

I am Mayur Jagtap. I am attached with market since 2018 when peoples not aware about it and many peoples criticized me that time when I decided to join this field. And as of now you know there is flood of new peoples in market post pandemic stock market crisis. And peoples become crazy to invest as there is boom in market since last 2 years. This boom is liquidity driven boom and any stock you picked randomly that gave tremendous returns to stock holders. Here I used word ‘Stock holder’ purposefully as there is difference between investor and stock holder. There are many companies which are not generating profit of single penny but they gave multi-fold returns to stock holders. But be aware market is not easy even many of us made money from market in last 2 years. Always remember market is game of ZERO SUM means someone’s profit is loss of someone, means cash is only running from one account to another account there is no printing press.

As peoples are inspired from dialogue of web series- ‘ye stock market pure desh ki paise ki pyas bhuja sakata hai’, so keep it as dialogue only because it is false 

statement in real life. The money in market is always belong to some person. Exchange/regulator/RBI not putting fresh money in market by printing it in press.   Although Govt. planning to get money from your account by selling its stake from LIC. Here I am not demotivating you but just putting facts in front of you. So Equity investment is not everything so diversify your capital in other asset classes also.

Here I have one example, a person he brought some piece of land in 1995 for some 70-80 thousand rupees. And that piece of land today worth of more than 1.3Cr just calculate % returns so conclusion is stock market is one of the place where you can invest your money but it is not only stock market where you can put money search other investment opportunities also.

"Budgeting is not about limiting yourself, 

it is about making the things that excite you possible." 

The investment opportunities-

Invest time in yourself – by learning and acquiring skills.
Stocks

Real Estate- Land, Commercial property (Flats and bungalow are not worth as terms of returns if it is not at prime locations in metro cities)

Mutual Funds- If you not have time to study stock market or stocks

Funding to small/medium businesses with proper documentations

Bonds- Fixed income securities for guaranteed income. /FDs

Digital Gold

" I am always saying Market & real world both are beyond the your 21”, 52’' and 72” inch screens. And to understand this you may take years."  

So now next is Spending habits.

A student ABC passed from college and after struggle of a year got a good job. As his age is young and getting money of own hard work so, he started enjoying his life as he now not dependent on parent for expenses. He brought sport bike, started using high prices branded things. This all because he wants to make his image cool and impressive on social media. After some years as he getting new responsibilities in life and his salary even after good hike become short for expenses. All salary getting consumed in EMI’s and expenses. And he getting stressed of this all things, due to stress he got some health issue. Here, key is before buying anything ask yourself is it really needed to you?

"Never bet in market by someone’s tips."

So, what is purpose of this story-

The lesson is as normally we spend our 20’s on education after that no one telling or mentoring peoples how to spend our building decade of 30’s. But here we are with some points which helps you to take charge of your own growth of life. 30’s is building decade of life where you shaping your whole future life on foundation of your education. So, this decade you must utilize on acquiring new skills and knowledge. Along with your job or higher studies you need to start side hustle. Need to fully focused on Capital building- Financial as well as intellectual capital. In this decade say no to EMI’s, don’t buy thing on EMI which not generating returns 12% annually. And focus on maximum saving which will save your future and make your life stress-free. Because stress-free mind is important for doing every task efficiently in our life and to generate new ideas for our growth.

There is very strong misconception in our society, peoples or friend around you provoke you by saying why you taking so efforts, enjoy your bachelor life, once bachelor life end then you can’t able to enjoy. But be firm on yourself and your dedication, because if you not putting efforts in your 30’s then you have to struggle in life like above story. Its your life and you have you design it, because if we sow the seed today then we not get fruits tomorrow it takes time. So, putting efforts in your 30’s will lead peaceful life in 40’s, 50’s, and so on….

Here, key is build and invest your financial and intellectual capital in 30’s so you will get good returns from it in your rest of life. No matter how much income you make, keep a modest lifestyle, and convert your paychecks to capital. Use your money as a tool to create more money and financial peace. If you get trapped in huge mortgages and car payments your boss will own you forever.

 

………………………………………………………………………………….. (To be continued )

 

Mayur Jagtap

Investment Consultant.

jagtapmayur.v@gmail.com

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