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EP-73 – தேவைகள் ஜாக்கிரதை - Greatness Series - Zero to Hero 100
days Personal Transformation Journey
days Personal Transformation Journey
We are in
Episode 73.
Episode 73.
இந்த YouTube channel லை வாழ வைக்கும் தெய்வங்களாகிய எல்லா
ஹீரோயின்களுக்கும், ஹீரோக்களுக்கும்
வணக்கம்.
ஹீரோயின்களுக்கும், ஹீரோக்களுக்கும்
வணக்கம்.
As we have
completed all the 7 Habits of Stephen Covey, I want take up “Greatness Series” to
address other best behaviours, habits, simplifying tools, good books, Videos,
TED Talks and resources.
completed all the 7 Habits of Stephen Covey, I want take up “Greatness Series” to
address other best behaviours, habits, simplifying tools, good books, Videos,
TED Talks and resources.
We did deep drive
on Hierarchy of Needs, Needs and Wants (அலசி ஆராய்த்தோம்). Today I want to take about Personal
Finance Trap.
on Hierarchy of Needs, Needs and Wants (அலசி ஆராய்த்தோம்). Today I want to take about Personal
Finance Trap.
Little disclaimer
here: I am not an expert in Personal Finance. I am sharing my thoughts and
opinions based on my experiences.
here: I am not an expert in Personal Finance. I am sharing my thoughts and
opinions based on my experiences.
Yesterday I spoke
about Vadivelu’s comedy scene வாமா மின்னலு.
about Vadivelu’s comedy scene வாமா மின்னலு.
I personally
experienced the same thing. My மின்னலு
was my salary. It gets
deposited on 1st of every month. Vanishes like a மின்னலு within five days. I was clueless.
experienced the same thing. My மின்னலு
was my salary. It gets
deposited on 1st of every month. Vanishes like a மின்னலு within five days. I was clueless.
Similar to me, one
of my very close friends fell into this trap. As Salary vanishes, immediately he
got hooked on to Personal Loan, Credit loan in addition to EMI and car loan.
of my very close friends fell into this trap. As Salary vanishes, immediately he
got hooked on to Personal Loan, Credit loan in addition to EMI and car loan.
Basically he was a
Zero with respect to Personal loan. He was struggling a lot. No peace of mind,
no proper sleep. All his wife jewels were in Bank lockers. He was in deep
trouble.
Zero with respect to Personal loan. He was struggling a lot. No peace of mind,
no proper sleep. All his wife jewels were in Bank lockers. He was in deep
trouble.
He approached me
for a deeper coaching conversation. Over a period of the conversation, I asked
him, “How much money did he owe it to the creditors.”
for a deeper coaching conversation. Over a period of the conversation, I asked
him, “How much money did he owe it to the creditors.”
He had around 6
different types of loans. She was also earning member in the family. I asked
him to have a deeper conversation with his wife and clearly explaining his
stand to her.. It helped a lot. Then he came back and added two more loans from
his wife’s side.
different types of loans. She was also earning member in the family. I asked
him to have a deeper conversation with his wife and clearly explaining his
stand to her.. It helped a lot. Then he came back and added two more loans from
his wife’s side.
As Warren buffet
says, if you cannot increase your income, you can cut down on your expenses. It
is also equivalent to income.
says, if you cannot increase your income, you can cut down on your expenses. It
is also equivalent to income.
Some personal
finance tips that I learnt from Anand:-
I dedicate this Episode to Mr. Anand. Hats off to Anand.
finance tips that I learnt from Anand:-
I dedicate this Episode to Mr. Anand. Hats off to Anand.
·
He is
graduated from IIT and IIM. He never has any one credit card till date. I used
to think him as Alien and not adopting to the trend.
He is
graduated from IIT and IIM. He never has any one credit card till date. I used
to think him as Alien and not adopting to the trend.
·
I have
one friend who is very intelligent which I realized after 10 years.
I have
one friend who is very intelligent which I realized after 10 years.
·
He
won’t do any expenses unnecessary. He has a lot of money. He won’t buy things
for sake of societal pressure.
He
won’t do any expenses unnecessary. He has a lot of money. He won’t buy things
for sake of societal pressure.
·
He does
not own any car till date. He is staying very close to Nungambakkam station. He
owns a first class ticket for local trains. He pretty much travels in Train if
it is convenient. He also uses Uber, Ola to meet other conveniences.
He does
not own any car till date. He is staying very close to Nungambakkam station. He
owns a first class ticket for local trains. He pretty much travels in Train if
it is convenient. He also uses Uber, Ola to meet other conveniences.
·
All
these big companies are slowly injected this virus(needs) into our system. We
think having more credit cards are a prestigious status. That is not true.. I
personally realized now. He says,
கடன் வாங்கறதும் தப்பு கடன் கொடுக்கறதும் தப்பு.
All the credit card, personal loan
can be avoided if we follow this one rule.
All
these big companies are slowly injected this virus(needs) into our system. We
think having more credit cards are a prestigious status. That is not true.. I
personally realized now. He says,
கடன் வாங்கறதும் தப்பு கடன் கொடுக்கறதும் தப்பு.
All the credit card, personal loan
can be avoided if we follow this one rule.
·
If you really
want to control your expenses, it is very easy. In fact, this is what our
parents, forefathers used to do as well, do all your transactions in cash.
If you really
want to control your expenses, it is very easy. In fact, this is what our
parents, forefathers used to do as well, do all your transactions in cash.
o
There
is a Science behind this which I have seen in the discovery channel, when we
swipe our cards, left, right and center, we did not consciously aware of our
expenses. We started accumulating more and more stuffs similar to Story of
Stuff. That is the reason they create these credit cards and poker coins to
convert our cards to plastic. These are all done to fool us consciously and
unconsciously.
There
is a Science behind this which I have seen in the discovery channel, when we
swipe our cards, left, right and center, we did not consciously aware of our
expenses. We started accumulating more and more stuffs similar to Story of
Stuff. That is the reason they create these credit cards and poker coins to
convert our cards to plastic. These are all done to fool us consciously and
unconsciously.
·
Why do
casinos use chips instead of money?
Why do
casinos use chips instead of money?
o
The
primary reason casinos prefer chips over cash is because chips add a little
mental separation between the gambler and his valuable money. It's a little
easier for you, the gambler, to place a big bet because it's just chips.
The
primary reason casinos prefer chips over cash is because chips add a little
mental separation between the gambler and his valuable money. It's a little
easier for you, the gambler, to place a big bet because it's just chips.
o
Psychology
Psychology
§
The
primary reason casinos prefer chips over cash is because chips add a little
mental separation between the gambler and his valuable money. It’s a little
easier for you, the gambler, to place a big bet because it’s just chips.
Logically, you know what those chips represent. But since it’s not actual cash
in your hand, you feel slightly less inhibition towards taking bigger risks.
The
primary reason casinos prefer chips over cash is because chips add a little
mental separation between the gambler and his valuable money. It’s a little
easier for you, the gambler, to place a big bet because it’s just chips.
Logically, you know what those chips represent. But since it’s not actual cash
in your hand, you feel slightly less inhibition towards taking bigger risks.
§
Basically,
it’s a matter of psychology. You can also think about it like this. If you
wanted to place a $500 bet on blackjack and all you had was cash, you would
have to sit there and count out the currency. It might be twenty-five $20 bills
or a small wad of fresh, crisp hundred dollar bills. It’s very real and it’s
staring you in the face. It gives time for what you’re doing to really sink in.
Basically,
it’s a matter of psychology. You can also think about it like this. If you
wanted to place a $500 bet on blackjack and all you had was cash, you would
have to sit there and count out the currency. It might be twenty-five $20 bills
or a small wad of fresh, crisp hundred dollar bills. It’s very real and it’s
staring you in the face. It gives time for what you’re doing to really sink in.
§
But if
you use chips, all you need to do is throw a single, purple chip down on the
table. It doesn’t look like much. It’s just a single, lonely chip sitting there
in the middle of a green felt sea. All it takes is a second and the money is
gone.
But if
you use chips, all you need to do is throw a single, purple chip down on the
table. It doesn’t look like much. It’s just a single, lonely chip sitting there
in the middle of a green felt sea. All it takes is a second and the money is
gone.
·
All the
credit card companies are growing in leaps and bounds because of the
defaulter’s money. Please do not fell into the credit cards, personal loan
trap.
All the
credit card companies are growing in leaps and bounds because of the
defaulter’s money. Please do not fell into the credit cards, personal loan
trap.
·
I used
to have 6 various credit cards, now I limited to only one credit card.
I used
to have 6 various credit cards, now I limited to only one credit card.
·
If you
do all transaction in cash, at least discretionary expenses, we will become cautious
of our spending. That conscience itself will help you to reduce our expenses.
If you
do all transaction in cash, at least discretionary expenses, we will become cautious
of our spending. That conscience itself will help you to reduce our expenses.
·
Even
our forefathers, parent writes their daily expenses. This is a way of cutting
down on expenses. This is control our expenses.
Even
our forefathers, parent writes their daily expenses. This is a way of cutting
down on expenses. This is control our expenses.
·
Have 2
to 6 months of monthly salary in any deposits to meet your emergency needs. I
see this as a contingency planning.
Have 2
to 6 months of monthly salary in any deposits to meet your emergency needs. I
see this as a contingency planning.
·
Slowly
we are following into the trap set by big companies.ஆடம்பரங்கள் அவசியமாகுகிறது
–
Slowly
we are following into the trap set by big companies.ஆடம்பரங்கள் அவசியமாகுகிறது
–
o
Every 3
months we are changing our phones
Every 3
months we are changing our phones
o
Every 3
years we are changing our cars.
Every 3
years we are changing our cars.
·
Our
earning potential and income are limited. It is not limitless like Akshaya
Patharam.
Our
earning potential and income are limited. It is not limitless like Akshaya
Patharam.
·
If we
keep on spending like water, it shows its real deep trouble in due course. That
is what happened to my close friend.
If we
keep on spending like water, it shows its real deep trouble in due course. That
is what happened to my close friend.
·
Unconsciously
we all are pull down by these companies and create a maya trap (மாய நதியிலே) for us to buy more and spend more. If we
are not cautious, they eventually create a pit for all of us to fall deeper and
deeper.
Unconsciously
we all are pull down by these companies and create a maya trap (மாய நதியிலே) for us to buy more and spend more. If we
are not cautious, they eventually create a pit for all of us to fall deeper and
deeper.
·
All
these personal loan and credit card companies are constantly working hard to
dump their products or services. Slowly they are digging a deep bit for us.. If
we are not cautious of our spending. They make us Zero. If you have to be the
Hero, we have to cautious of your spending and expenses.
All
these personal loan and credit card companies are constantly working hard to
dump their products or services. Slowly they are digging a deep bit for us.. If
we are not cautious of our spending. They make us Zero. If you have to be the
Hero, we have to cautious of your spending and expenses.
·
Personal
finance is everyone’s private area. Please take wise and cautious decision
without falling into trap set by big lending companies.
Personal
finance is everyone’s private area. Please take wise and cautious decision
without falling into trap set by big lending companies.
Coming back to my
friend’s situation, we put together a personal finance credo for the family.
friend’s situation, we put together a personal finance credo for the family.
·
They
put together all their income, loans together.
They
put together all their income, loans together.
·
They
quickly wrap up the smaller loans
They
quickly wrap up the smaller loans
·
They
consolidated all their smaller loans together.
They
consolidated all their smaller loans together.
·
They
cut down their higher interest loans to smaller interest rates.
They
cut down their higher interest loans to smaller interest rates.
·
Husband and wife don’t take any fresh loans
for a period of 3 years. Till they get out of this rut situation.
Husband and wife don’t take any fresh loans
for a period of 3 years. Till they get out of this rut situation.
·
They
discuss together on any major expenses above Rs. 5000. Follow a delayed
gratification approach which we discussed in EP-72
They
discuss together on any major expenses above Rs. 5000. Follow a delayed
gratification approach which we discussed in EP-72
·
Husband
and Wife strategize together, work together on collective finances.
Husband
and Wife strategize together, work together on collective finances.
·
They
segregated the expenses as needs, wants, necessary unavoidable expenses,
discretionary expenses and big fat expenses. They limit their expenses only to
necessary unavoidable ones.
They
segregated the expenses as needs, wants, necessary unavoidable expenses,
discretionary expenses and big fat expenses. They limit their expenses only to
necessary unavoidable ones.
·
During
their recovery journey, toughest decisions for them were handling family
function (like Wedding, etc) expenses of close relatives and friends. In spite
of their miserable situation, my friend took one more loan to maintain the
social system.. Always follow the age old principle, “விரலுக்கு ஏத்த வீக்கம்”
During
their recovery journey, toughest decisions for them were handling family
function (like Wedding, etc) expenses of close relatives and friends. In spite
of their miserable situation, my friend took one more loan to maintain the
social system.. Always follow the age old principle, “விரலுக்கு ஏத்த வீக்கம்”
·
if
someone value your gifts, he may not be a true friend or relatives. நல்ல friend இருந்தா குசேலன் இருந்தாலும் friend friend தான் and Krishna accepted him with both hands.. I think
the same applies to relatives.
if
someone value your gifts, he may not be a true friend or relatives. நல்ல friend இருந்தா குசேலன் இருந்தாலும் friend friend தான் and Krishna accepted him with both hands.. I think
the same applies to relatives.
Conclusion:-
6 months back, my
friend’s wife came and told me personally that their family came out of all
their debt in matter of 18 months to 3 years. She was very happy. I could see
1000w of happiness on her face.
friend’s wife came and told me personally that their family came out of all
their debt in matter of 18 months to 3 years. She was very happy. I could see
1000w of happiness on her face.
The lesson I learnt
from this and my mantra for today to become Heroes and Heroines is
from this and my mantra for today to become Heroes and Heroines is
o
கடன் வாங்கறதும் தப்பு கடன் கொடுக்கறதும் தப்பு.
கடன் வாங்கறதும் தப்பு கடன் கொடுக்கறதும் தப்பு.
o
விரலுக்கு ஏத்த வீக்கம்
விரலுக்கு ஏத்த வீக்கம்
o
“Live
your Life on Debit card not on credit card”.
“Live
your Life on Debit card not on credit card”.
Exercise: Evaluate
your spending habit of last month. Segregate it into wants and needs.
your spending habit of last month. Segregate it into wants and needs.
Articles:-
Why Do Casinos Use Chips Instead of
Cash?
Cash?
About me:-
EP-0 - Who am I? - Rajesh Narayanan
If you do not know me personally, you can check out this
video
video
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