### Introduction
In the introduction, the author discusses the desire to fulfill the needs and wants of oneself, one's parents, children, or spouse, even when there is a lack of money in the household. The author acknowledges that everyone has various financial goals, such as owning a house, a car, or taking vacations, and the aim is to be in an "Ideal Financial Situation" where one can meet all these obligations, whether it's education, marriage, loans, or medical expenses. The author then promises to share 9 simple habits that can help improve one's financial condition without sacrificing one's desires. The author assures the viewer that these habits are easy to follow and can be adopted by students, employees, business owners, or homemakers. The author also mentions that the sponsors of the video are "Stable Money," an app that allows users to compare and book fixed deposits offering up to 9.21% returns, with an RBI-insured deposit guarantee and a referral program.
### Habit 9
Habit 9 emphasizes the importance of avoiding unnecessary credit or loans. The author recounts an incident from their previous startup, where they hired an IIT alumnus as a co-founder who would frequently demand advance salary payments, often spending the money within 25 days. When the company refused to provide further advances, the co-founder left the job and was found to have borrowed money from various colleagues, even failing to pay a small tea seller's bill. The author acknowledges that borrowing money can be justified in certain situations, such as purchasing an asset or for business expansion, but cautions against taking loans merely to buy cars, bikes, or electronics without a guaranteed future cash flow to repay the principal and interest. The author notes the ease of obtaining credit cards and instant loans these days, often with interest-free periods, but warns that these entities are waiting for borrowers to default in order to charge high interest rates. The key takeaway is to avoid credit and loans, except for essential, well-planned purposes.
### Habit 8
Habit 8 emphasizes the importance of maintaining detailed financial records and accounts. The author notes that while a homemaker may easily recall their daily expenses, most people struggle to provide specific figures on their spending, relying too much on their memory which can be biased. The author recounts how, upon maintaining a monthly account, they discovered that their major non-essential expense was actually transportation, such as Ola, Uber, and flight tickets, rather than their initial assumption of excessive eating out. The key is to not trust one's mind but to diligently write down all expenses, categorized by different heads, at the end of each day before going to bed. This exercise, whether done in a self-created template, a diary, or a dedicated app, provides valuable insights that enable finding methods to save money effectively.
### Habit 7
Habit 7 emphasizes the significant financial benefits of quitting bad habits, using the example of smoking 5-6 cigarettes per day. The author calculates that giving up this habit can save an individual Rs. 2,400 per month and almost Rs. 29,200 per year. The author points out that these small daily expenses often go unnoticed, but when viewed from a macro perspective, the cumulative amount becomes substantial. The author further suggests investing the saved amount in a bank fixed deposit, which can yield an even higher return over time. Additionally, the author highlights that the long-term health consequences of bad habits can incur even higher costs, making a strong financial case for quitting them.
### Habit 6
Habit 6 emphasizes the importance of maintaining proper records and documentation to avoid late payments, lapsed policies, and unnecessary penalties. The author shares personal experiences and common scenarios where individuals have incurred losses due to forgetting to renew insurance policies, misplacing warranty cards, or failing to pay utility bills on time. The author credits this habit to their father, who diligently organizes and maintains designated folders for various documents, such as invoices, bills, and insurance records, with clear indications of renewal dates. The author encourages readers to adopt this habit, whether through the use of digital tools like calendar apps or a physical filing system, to ensure the proper upkeep of crucial records, including insurance, medical, banking, tax, and employment documents, as well as daily expense bills. By keeping all identification cards in a designated box, the author suggests that individuals can further streamline their record-keeping and access important documents whenever needed, ultimately preventing potential financial losses and penalties.
### Habit 5
Habit 5 emphasizes the importance of not buying products solely for their brand name or logo, but rather focusing on the functional value and quality. The author provides the example of their cousin who wants to buy an expensive car just because it looks "cool" and is watched by many people. The author highlights that while it is not wrong to purchase a car, the criteria for the purchase should be based on actual needs and requirements, rather than driven by the desire to display a brand. The author shares their own experience of buying their first car by creating a list of requirements and choosing the most affordable option that met those needs, rather than opting for a more expensive branded car. The author further elaborates that the true respect and status of a person should be determined by their work and achievements, not by the brands they wear or the accessories they possess. The author cites the example of wealthy individuals like Mukesh Ambani, Ratan Tata, and Warren Buffet, who are often seen wearing functional and practical clothing, rather than focusing on expensive branded items.
### Habit 4
Habit 4 emphasizes the importance of not only saving money but also investing it to beat inflation. The author provides the example of how the value of money has depreciated over time, with the cost of 1 liter of petrol increasing from Rs 33 in 2010 to Rs 110 currently. The author explains that this depreciation in the value of money is known as 'Inflation,' and simply keeping money in a bank or locker is not enough as it is slowly eroded by inflation. The author suggests that it is crucial to invest the saved money in instruments that can outpace inflation and provide a small return. The author shares the example of a relative who received a significant amount of gratuity upon retirement and was advised to invest in fixed deposits (FDs) at higher interest rates, particularly in small finance banks, to ensure their money beats inflation. The author also mentions the Stable Money app, which can help individuals easily invest in FDs with features like no penalty for premature withdrawal, allowing the FD to be used as an emergency fund. The author emphasizes the importance of investing in asset classes that one understands clearly, even if the returns are slightly lower, to ensure a good night's sleep and avoid the risk of losing one's entire savings.
### Habit 3
Habit 3 emphasizes the importance of buying in bulk to save money. The example provided shows that the cost per liter of bottled water is significantly higher than the cost per liter when purchased in a larger 5-liter can. Similarly, a 20-liter can of the same product can be obtained for an even lower per-liter cost. The author suggests that this principle applies to many household consumables, such as rice, where buying in bulk can lead to substantial savings compared to purchasing smaller quantities. The author highlights that maintaining proper records and understanding the monthly consumption patterns of a household can help identify opportunities to buy in bulk and save 10-20% on monthly expenses. Additionally, the author suggests that buying in bulk allows for better negotiation with the shopkeeper and the opportunity to avail of discounts, further increasing the potential for savings.
### Habit 2
Habit 2 emphasizes the importance of prioritizing health, even in one's younger days when it may be easy to neglect. The author highlights a famous quote that suggests people often work hard to accumulate wealth, only to spend that wealth trying to regain their health in retirement. The author cautions against the temptation to ignore health-related expenses, such as gym memberships or yoga classes, under the assumption that they are unnecessary. Instead, the author encourages the development of a habit to take care of one's body, as health problems can become the sole focus if they arise, regardless of one's financial standing. The author emphasizes that neglecting health in pursuit of wealth can ultimately prevent one from fully enjoying the fruits of their labor.
### Habit 1
Habit 1 emphasizes the importance of never-ending learning. The author acknowledges that many traditional jobs are becoming obsolete due to automation and technological advancements, but emphasizes that this does not mean a lack of job opportunities. Rather, new types of jobs and work are emerging, and the key to adaptability and success is to maintain a habit of continuous learning. The author suggests that learning can often be done for free, such as through online platforms, and encourages the viewer to take advantage of these resources. The author also mentions a referral program for a financial app that can provide additional incentives for learning and sharing knowledge.
### Bonuss :)
The chapter 'Bonuss :)' describes the father's meticulous organizational system, which includes a structured folder system for various household documents and records. The father maintains separate folders for passbooks, cheque books, invoices, bills, insurance files, and electricity bills, with each person's documents organized accordingly. The electricity bill folder includes details on the solar system and monthly usage readings. Additionally, there is a box containing each family member's identification documents, organized by person, and a file for warranty cards sorted by date.
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