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(The
above video is in Hindi language and if you are not familiar with Hindi
language, then read this post to understand the video content.)
Hey
welcome back!
This article will answer the question, How to do smart Mutual fund sip with Zerodha's Coin platform where you can buy commission free mutual funds.
Today is 10th December 2020 and you will get the video tomorrow that is on 11th December 2020 @ 8 O'clock in the morning. we are ready with this month's Smart Mutual Fund
SIP.
1st of
all, Let's check the valuation of the stock market.
P/E
Price to Earnings Valuation of Sensex on 10th December 2021
BSE -
Sensex - 45959
PE (Price
to Earning) – 32.84
Price to Book
Value – 3.05
Dividend
Yield - 0.88
Right now
stock market valuation is at 32.84PE (Price to Earning) means for earning one
rupee we have to give 32.84 rupees right now, which is expensive deal as it is
delivering just 3.04% return, and right now bank saving accounts are offering
3.5% to 4% interest rate and hence the expected return is much less than the
bank saving account. Bank saving account offers risk free return of 3.5% to 4%
return then why the hell we will take risk of investing the money in stock
market for 3.04% returns expectations.
So, we will not infuse new money
in stock market right now and instead we will wait for either earnings of the
companies to pick up to justify the valuation or vice versa. We don’t have any
problem buying the markets at higher level, but we will only buy it after we
get valuation justification. Till then we will park the money in debt fund
especially, in GILT Fund.
The Fund
that we are investing is, Nippon India Gilt Securities Fund.
SIP
AMOUNT - 5000
NAV - 32.7961
No. of
Units allotted - 152.45
and this
is the current status of stock market portfolio
(The above video is in Hindi language and if you are not familiar with Hindi language then read this article in your language to gain knowledge of money management system.)
We have already created two videos (Articles) on Wealth Creation process/Money Management System/ Personal Finance so if you haven't read that then click on the below links and read it first so that you can learn the concept perfectly.
Now, This is the 3rd part of the series, and in this article we will be learning, how we can save 10% money from your salary or income on regular basis. In short, in this video we will be discussing about 7 rules that will be helping you in saving 10% money from your income.
There are two types of people found in our world. 1st ordinary people and 2nd those people who have stand apart from this list of ordinary people and have become special one. I used to call this special category people as an "Investor Mindset" people. There is a clear cut difference found between ordinary and investor mindset people, ordinary people always knows how much their monthly income is but they don't know about their monthly expenses. On the other hand Investor mindset people are well aware about their monthly income and expenses. and this is the reason investor mindset people are well at managing money. Investors always write down their income and expenses to remember it. They note down their smallest ever expenses too. In real world too all the successful people have adopted this very good habit of writing down their income and expenses. Not only successful people, government itself, small and big companies, big institutions, and every organisation write downs their income and expenses to remember it. The elements like Profit and loss statement and balance sheets exists only because of this reason. This example is enough to explain how important for you to write down your income and expense. And if you want to become investor you too have to make habit of writing down your income and expense. This way you will be able to see, where you are spending your hard earned money and what are the pockets that you can cut down your spending and/or completely lower the spending.
There are 7 points that are very common about spending. And that's why we have made 7 Rules that will help you in 10% money from your salary or income.
1. Take control over "Parkinson's Law" -
This is world renown principle that explains that its a human tendency that whenever there is increase in the income the person tends to increase his/her expenses too. So if you want to be financially successful then you have to be aware of the "Parkinson's law" and make conscious efforts to keep your expenses lower than your income.
2. Differentiate between "Needs" and "Wants":
See, most of the expenses are falling under two categories. first is "Needs" and second is "Wants". You have to give more importance to your basic needs like "Food, Cloth and Shelter" and you have to pay less importance to your wants because your wants are limitless. Your wants will be always higher than your income. for example, imagine you have to go from one place to another place then, your 1st desire will be you must have shoes, then from shoes to cycle, then from cycle to scooter or motor cycle, then from motor cycle to car and then from car to plane your desires (wants) will keep growing. So control your desires and all those desires that you are not able to fulfil you have to postpone it. This way you will be able to fulfil your small desires and every fulfilled desire will work as motivation to fulfil bigger desires and all those desires that won't be fulfilled, will work as your goals. This way you will be having double advantage.
3. Try to minimize the common expenses:
There are few expenses that falls under common expenses, like cloths,
Shoes,
Artificial Jewellery,
cosmetics,
decorative items and
going outside for taking lunch and dinner.
so, you have to lower the expenses on these above items. (Remember, I am not telling you to live the life of miser, but you have to consciously manage your expenses on above items so that you can live comfortable financial life).
4. Don't Show off:
You must not waste your hard earned money on show off, because at the end of the day you will realise that show off is the most foolish thing. Remember, our aim is to become rich and wealthy and not looking rich and wealthy because once you become rich and wealthy you will automatically get recognition of being wealthy. So focus on your goals of becoming rich and wealthy and you will be automatically look wealthy. so stop spending money and show off to get attention and appreciation from others.
5. Always have shopping list ready:
This is very small thing, but very important aspect. Whenever you go out for shopping then you must have list of items that you need to purchase from the shopping mall and don't buy any additional item from the mall.
6. Postpone the buying decision to next 30 days:
You must not buy any item that is not a basic need and its just a want or desire instantly. Instead you should wait for the next 30 days to validate the requirement of that item and if after 30 days you evaluate the situation and requirement of the item and if it fits then you take buying decision else skip it or postpone it by making it future goal. More on, you have to first save the money to buy the item during this 30 days so that you won't fall in debt trap.
7. Never mix Insurance and Investment:
You should never buy useless life insurance products. Life insurance is only taken for the earner of the family and its not for everyone else. The person who is earning must have the "Life Insurance" as it will give safety to its family that in unwanted circumstances this life insurance will be helping his family. But buying life insurance products of other family members who are not earning anything is just waste of money and buying kids insurance is the total rubbish concept because kids never needs life insurance. Instead invest this money and see how fast it grows and helps you get financial freedom.
So, These are the 7 small rules that you followed successfully then you will be able to save 10% money easily and investing this 10% money gives you financial freedom using our "Smart Mutual Fund SIP".
(The above video is in Hindi language and if you are not familiar with Hindi language, then read this post to understand the video content.)
Hello Investors,
In last video, "Amiri Se Introduction"(Introduction to be being wealthy) we have seen that richness or being wealthy is depended on 3 pillars; 1st Earn, 2nd Save and 3rd Invest. If you haven't seen that video then go to my Youtube channel and see it or click on the below link to read it in article form so that you can understand the concept fully.
In this video, we will be talking about the 2nd element that is "To Save".
See, I really like to talk straight forward in clear cut tone and in this video too I will be telling you the simple way how you can start saving money.
so let's start, Out of every 100 rupee you earn, you have to save 10 rupee and invest it. that's it. This is the biggest secret of wealth creation.
If you have to become rich then, you have to save 10% of your total income each and every time and don't worry its very easy to save 10% money. Its fact, If your household expenses are covered in 10,000 rupee monthly income or 50000 rupee monthly income then its will be covered in 9000 rupee or 45000 rupee too. It is possible. Its working. We have personally applied, implemented this concept and its working you should give it a try and I am sure it will work for you as its a universal rule.
If you still have doubts then let me explain you the same concept in different words, as it is right now corona pandemic period you would be able to understand even better.
Suppose, take an unrealistic example, for any known or unknown reason your salary is being cut by 10% salary then what should you do. Would you leave the job? I think you won't be leaving the job as you must be knowing that this is tough time and you won't be getting new job easily. And if you got new job then you might not like it. and even you like the new job then you won't be getting big salary hikes. so you will be doing the same job with 10% salary cut without complaining and that's fact.
Now think, logically.
If you are ready work with 10% less salary because of the external factors like Corona pandemic then with the genuine goal of wealth creation why you are not ready to save 10%?
So from today start believing that your salary is 10% less, and start investing this 10%. Now if you ask where to invest then the perfect answer that I can give you is, invest in the "Smart Mutual fund SIP" concept where I am investing my money and you can practically learn how to invest in mutual funds smartly... click on the below link to see the playlist of "smart mutual fund sip" by clicking below link
Few of you, might even say that I won't be ready to do job, instead they will change the job. Then I am having real world example that I want to share it. If you are government employee then you must be knowing that there are 2 times a year you will get salary increase as dearness allowance being given 1 in January and 2 in July month of every year but due to corona, this time dearness allowance has not be given in July month as government clearly stated that dearness allowance will not be given as part of cost cutting. And how many of you have left the job because of not getting the dearness allowance? No one! Right!
Means the reality is, we are ready to do the job with less salary too. And this saving 10% money is called the "Pay yourself first" concept and all the investors are following this and not only that all global governments are following this concept. Have you heard the word, Provident Fund, commonly used as PF. If you are not knowing this then let me show you with example.
See, you salary slip and in that you will find CPF or PF box there you will be finding the deduction of 10% (12% to be precise) of the basic salary. This is the amount that has been deducted from your salary and being invested and might be possible that you even don't know it.
You know the biggest hurdle that is stopping you being rich and wealthy is, not using the "Common Sense". From the starting of your job you must be having this 10% deduction of pf initially it was 12%. Means in front of your eyes this 10% rule is working, it was working in past as well and still you have seen it and still not applied. Global government gives pension and other retirement benefits using this 10% rule and this is the proof that this rule is reality and it works and all the employees who are has retired and got retirement corpus and pension of 40000 - 50000 rupee are live example.
Now think it this way, Government that has responsibility of doing each and every task of big scale for full country and if they trust this 10% rule then me and you can definitely make more wealth using this 10% rule. When government use 10% rule then they have so many rules and restrictions as they have to manage it nation wide. and when we use this 10% rule our self then we will not be having that many restrictions.
The biggest benefit that wealth created using this rule will keep growing even after the death of the employee. In case of government policy of pf pension is stopped or lowered after the death of employee; our wealth will keep growing with time.
So, from today itself, start using 10% rule and start investing.
So, that's all for now...
See you in the next video (article) meanwhile you subscribe to my Youtube channel and book mark this blog and other social networking sites so that we keep connected.
(The
above video is in Hindi language and if you are not familiar with Hindi
language, then read this post to understand the video content.)
Hey
welcome back!
The world we live is two world. one is world of poor and second id world of rich. Day by day rich gets richer and poor gets poorer and this is not only happening in today's times its historically happening and will continue in future as well.
Let me tell you second thing, I just shown the fidelity survey of the year 2017, in that survey there was very surprising fact was mentioned. The fact was, 88% of millionaires are those people who are self made. These 88% are those people who has escaped the poverty and become millionaires (see the video for screen shot).
Now the above 2 statements are contradictory. in the 1st part I said the rich gets richer and in 2nd part I shown you the survey that shown that any person can escape poverty and become rich and most of the people are those who was poor and then has made fortunes.
So have you ever imagined why this thing happens?
Haven't imagined yet! no worries. don't indulge your mind in thought process now. I am telling you the answer in the simplest words.
See, in this world, the person who has more money is called rich and money is made in just 3 ways.
1. Earn. 2. Save. 3. Invest.
And if you want to become rich then you must be good at this 3 things.
Now let's me explain you one by one how you can escape poverty and become rich. I will start it from basics so that everyone can become rich in reality.
1) Earn:
1st of all, to become rich, all you need to is money and right now you are not having money. No worries. You can earn money doing job. Get a suitable job part time or full time job and start earning money. The whole world is doing the same, More than 90 to 95% of total population is doing the same 9 to 5 job to earn money and you have to start doing it. And with the time become expert in your job this way you will be able to get salary hikes and you will be having more money. Means start doing job and start learning, sharpen your skills and this way you will grow. But there is one small problem here, irrespective of expertise you have, you will be having just 24 hours a day to work and if you keep working 24 hours out of 24 hours till then you won't be able make money above certain limits. This is called the time limitations. And hence you have to be stay more focused on saving money then earning money and exactly this is our second point. How to save money.
2) Save:
It is always more important to save money than earn money because "A Penny saved is Dollar is Earned". Remember, You have to make efforts to earn money every day, every time and once you saved money it is your money forever. it is just a one time effort and then it will be always work for you. So if you give 100% importance to earn money then you have to give 200% importance. Stop the nonsense expenses and start saving money. And there are fix rules on how to save money and we will learn that too in upcoming videos.
3. Invest
Now, let's continue discussion, the money that you saved is not invested properly then its a waste. And hence, you have to learn investing.
1st of all, let's see the instrument where you can invest your money.
Piggy Bank,
Banks saving account,
Banks Fixed Deposits,
Postal Savings Schemes,
Sukanya Samrudhi Schemes,
The above are less risky investment instruments and hence it won't be making you rich because its not able to beat the inflation rate. Inflation rate is at 6% annually and hence by the time your 100 rupee invested turn out to be 106, the product that you can by this 100 rupee a year earlier will not cost you 106. Means all your investing efforts have gone waste.
And hence you have to take risk, Calculated risk. Always remember one thing, without taking risk you have already lost the game, and if you are ready to take little calculated risk then you can win this game because the higher the risk the higher the return and with the proper knowledge you can lower the risk element. And we are doing the same in our "Smart Mutual Fund SIP".
Now we are talking about risky investments then it includes Investing into Gold and Silver, Currency, Real Estate, Stock market and commodities. Out of these investment instruments I personally invest in stock market directly and/or via mutual funds and hence in upcoming articles we will learn how to invest in stock market, how to invest in mutual funds. In upcoming videos we will learn in depth about how to invest in a way that we will easily out perform inflation and grow money.
(The
above video is in Hindi language and if you are not familiar with Hindi
language, then read this post to understand the video content.)
First of all, understand the meaning of conditioning. "What is conditioning?"
If I have to answer the above question is simplest words, then I would say it like this; "Conditioning means strongly fixing particular thought in your mind". And the bitter truth is that everyday 24/7 your mind is being conditioned by the world in one way or the other and the funniest thing is you even know this. Whether it is print media or digital media or people around you everyone is conditioning your mind with different thoughts means your mind is being conditioned 24/7. As far as this conditioning is positive its ok. no problem. nothing wrong in it. all is well. But this doesn't happen every time, many a times your mind is conditioned wrongly, not many a time, most of the times your mind conditioning is done negatively. And that's the reason negative is spread rapidly, goes viral and positivity takes a long to flourish.
Let's take 2 examples of wrong conditioning.
1st "Become Educated and do 9 to 5 Job".
first of all, this concept of "Become Educated" is world's best concept. Its very close to my heart. Its life changing concept. I just love it. Whenever I think of education I instantly recall the dialogue of Hindi movie "3 Idiots". When a boy takes birth his father said "Farhan Qureshi B.Tech Engineer. and this mindset of educating kids is awesome and even above that, the wisdom of Baba Ranchhoddas Chanchad - Boy - "Become expert in the field; success will follow automatically". And then one more movie dialogue that was truly awesome was from the Hindi movie "Super 30" - "Whenever a kid gets educated, he escapes poverty forever, for all his future generations". This dialogue is the benchmark dialogue and its 100% right. I totally agree. I just love it.
But, But the next part of the story is just a bullshit again wrong conditioning is coming into picture. Today, world is changing rapidly, technology advancement is very fast and we will not be able to catch the speed of this fast changing world following the traditional education system. And 9 to 5 job is the dangerous option as of now because as and when you stop doing job your income will be stopped and so many problems will start.
And if you want to counter this problem, get solution to this problem start building new sources of income so that you don't need to be the slave of 9 to 5 job. And I will answer how to build additional income source in the end part of this video.
Now, let's talk about the second conditioning.
2nd "Its very hard to earn money nowadays".
Now, I think this is the second wrong conditioning, that is being planted in our mind. Instead I think its very easy to earn money now a days. Just in 3 steps you can earn money easily. 1st Save money, 2nd Invest money and 3rd Re-invest money and repeat the process. This is the easiest way of becoming rich in today's time.
The one of the world's richest person Mr. Warren Buffett who has sold newspaper and magazines door to door and then had planted pinball machines in barber shops and earned money through that and invested that money in stock market and then reinvested profits earned from that and repeated this process and as an outcome he has been among the richest person of the world. And if Mr. Warren Buffett can become one of the world's richest person doing investing then you and me can too become successful. So start following this 3 steps and take the first step towards being rich and wealthy and achieve financial freedom.
Just like Harry Potter movie dialouge, "One more year has passed" and with that its a time to check the portfolio, how it has performed.
This year was special as it brought so many twists and turns starting from the stagnation in economy to COVID-19 pendamic that resulted into stock market crash and then a v shape recovery in markets.
In last one year, I have seen the fastest correction in the market and sailed it well, just because of the well designed strategy. I am not having any losses, instead I am able to grow the money substantially during the year. In the previous year, the wealth grew to rupee 27,29,695 and this year it has grown to rupee 36,41,864. Now, right now stock market is trading at high valuation and hence I am having less exposure to markets and major portion of the funds is invested in debt funds and fix deposits (sitting on cash) with a view to grab opportunity as and when appear.
(This video is one of those raw videos when I had just started youtube. This video's audio quality is pathetic and hence I think it would be better to write down the article so that I do not need to remake the video and I can share the thought in your language so that it can be beneficial to you. Always remember, I have kept these raw videos because I always believe in progress over perfection and success is just a journey where you gradually grows.)
Hi, Have you ever thought of buying a lottery ticket? If yes! then what is the price tag of that ticket? 1 lakh, 5 lakh, 10 lakh, 50 lakh, 1 crore or 10 crore. I know most of the people (80%) will be stopped at 10 crore. And harsh reality is that you can earn quite more than 10 crore or even 100 crore or 1000 crore.
To achieve this kind of success all you need is to cultivate the mindset of abundance. "There is no upper limit for success". "Sky is the limit".
Napoleon Hill is a world renown writer and he has written very good statement in his best seller book Think and Grow Rich - "Whatever the mind can conceive and believe, the mind can achieve".
So, the first thing that we need to develop in Investor mindset is that, "Thing Big". Once you start thinking big you will start getting success easily.
One more thing, Being investor we do not believe in luck or lottery. We never believe in winning of the basis of luck as we strongly believe that there is nothing like luck. Instead we build system and our system works for and give us success.
Additionally, let me tell you one thing, Have you heard about the IPO (Initial Public Offering) that is launched on stock exchanges are kind of lottery itself. We will learn more about IPO in upcoming videos. For now we will restrict our discussion about investor mindset topic "Think Big and Grow Rich". See you in next video with new topic.
(This video is one of those raw videos when I had just started youtube. This video's audio quality is pathetic and hence I think it would be better to write down the article so that I do not need to remake the video and I can share the thought in your language so that it can be beneficial to you. Always remember, I have kept these raw videos because I always believe in progress over perfection and success is just a journey where you gradually grows.)
Welcome to my channel,
Today's topic is Who is Investor and investor's mindset and what is actually being considered as an investor mindset?
see, its very simple. At a point of time you can be either consumer or an investor. Let's understand with an example.
Let's assume, You have already taken a lunch and now you have 100 rupee note in your pocket. Now you come out of home or office and see a vadapav stall and get desire of eating a vadapav. Now its a tough time, see you have already taken lunch and you have 100 rupee in your pocket and still you rush to that vadapav stall and eat the vadapav then you became the consumer and on the other hand, if you told yourself that you are not hungry as of now as you already had lunch and hence you will eat vadapav tomorrow then you became the investor. Now this is the basic difference between the consumer and investor. And this is not the small difference. This is the biggest difference that is driving this world.
In investor language this concept is called "Pareto Principle" - In simple words it means 80/20 rule and its universal. Its found and applicable in all over the world.
For example, Basically everybody has basic needs and hence basically everybody is consumer but in this world 80 % are consumer and 20% are investor. You read it right, in this world 80% are consumer and 20% investors. Investors are also consumer but they resist buying today instead they prefer to wait, wait for buying at the right price level or buying the things at right value. This concept has been evolving since centuries, when we were kids we have read the story of Rabbit and Tortoise from the story book "The Panchtantra". The concept - The pareto principle is also applicable there, The tortoise was investor and the rabbit was the instant gratification seeker, instant success seeker, fly high get success kind of mindset holder consumer and you know the climax of story. The tortoise won the race with big margin taking small small steps consistently.
Investors are always having very high chances of success and that is too with very less efforts in reality.
And hence, through this channel, I will try my level best to bring out the Investor mindset from yourself and if you succeed to develop the investor mindset then rest of things will be be very easy for you. you will succeed in this world with very less efforts and achieve financial freedom. And hence, from now onwards all upcoming videos will be focused on investor mindset, and then mutual fund wisdom and then stock market investing. See, investing is actually very easy thing, it has been made complicated unnecessarily in wrong as being tough, in reality investing is very easy. Stock market and mutual fund investing is very easy, just follow the basics and everything will be fine. life is cool. enjoy it.
