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  • If your parents are like me, you have been told..

  • 'Beta, get a job after graduation and stay loyal to that company until you retire.'

  • And the only financial advice you got

  • was, 'How to write a check'

  • With this Golden Knowledge, at the age of 21, I became a Software Engineer

  • at an I.T company that was literally paying me peanuts.

  • The money was bad, salary hike was almost zero,

  • work was pathetic

  • and my growth was stagnant.

  • Every month my salary would barely survive the end of the month.

  • But a girl needs money..

  • To study further, to travel,

  • to save for emergencies,

  • to buy a house, to save for retirement.

  • But most importantly, I needed money so that I can make my own life decisions

  • without having to depend on someone else.

  • We all talk about gender equality.

  • But it will come only when we first become financially independent.

  • And trust me, a 9 to 7 job is not going to get you that independence.

  • And yet, I am the only one in my family who

  • bought a house before turning 25.

  • And for that, you don't need to work for 10 hours everyday.

  • You need to make smart financial decisions.

  • And trust me, this is something that every girl should know.

  • Because, not only will it help your career

  • but it also changes the dynamics of the relationships you are in.

  • Be it mother, daughter or wife.

  • Because you will not be treated as a dependent anymore.

  • So girls, no matter if you are 20, 30 or 40.

  • By the end of this video, I will tell you

  • even if you have more responsibilities, low income, debt, taxes, how you can start investing now.

  • Because it's not about how much money you make.

  • It's about what you do with it.

  • But before that, if you like what I am saying,

  • then hit that big fat LIKE button

  • because that will motivate me to keep making more videos.

  • Let's begin.

  • So ladies, you can spend money on 2 things.

  • Assets and Liabilities.

  • Liabilities are something that take money away from you.

  • Like for example, if you have a car

  • you have to pay for it's gas, it's maintenance.

  • It's not making you any money. So, that's a liability.

  • On the other hand, assets make money for you.

  • For example, if you have a small apartment

  • and people are paying you rent every month - that's an asset.

  • If you write a blog, article or make a YouTube video that's generating you revenue even after

  • years of you creating it - that's an asset.

  • Mutual Funds, Stocks, even Solar Panels that you install, because

  • they will save you electricity in the future.

  • All of these are assets.

  • If you want to be financially independent

  • you need to have more assets than liabilities.

  • Sure you can spend money on some liabilities like an iPhone or an iPad

  • but before that you should first have more money coming in than going out.

  • So to ensure that you have more money coming in,

  • today we are going to discuss, different investment options available.

  • And by the end of this video, as a bonus, I'll also tell you

  • how to divide your money in these investment options

  • so that you get the best returns and eventually

  • your 'Apna Ghar'.

  • Saving Options can be divided into 2 categories.

  • Short-Term (0 to 5 Years) and Long Term (5+ Years).

  • We are going to analyse each saving option based on 3 parameters.

  • 1) Liquidity. Suppose you have an emergency and need money right away.

  • Then how soon can you get that money from that investment, is called liquidity.

  • 2. Risk, which is the possibility that you might not get all of your money back.

  • 3. Returns, which is how much can your money grow.

  • Let's start with Short-Term Options.

  • Now, the first Short-Term option to save is obviously in the form of Cash.

  • Any notes that you see lying around and is yours,

  • save it.

  • Cash is available whenever you want to use them,

  • so that makes it's liquidity, HIGH.

  • The risk is LOW. It's not zero because somebody can still steal your cash.

  • And returns are also ZERO.

  • Why?

  • Because if you leave your cash in your purse for 5 years, it's not going to grow by itself.

  • So that makes returns, Zero.

  • Fixed Deposit, is when you give the bank, a certain amount for a Fixed Period.

  • But at a higher interest rate than a Savings Account.

  • For example, SBI gives somewhere around 4% for Savings Account

  • but for a Fixed Deposit, it ranges anywhere between 5.75% to 6.75%.

  • And it depends on how long are you giving your money for.

  • Are you giving it for 7 Days, 6 Months, 1 Year.

  • Now, coming to it's parameters.

  • Liquidity is HIGH.

  • Because even if you don't want to wait for those 7 days, 6 months or 1 Year

  • you can withdraw your money anytime you want.

  • Risk is ZERO.

  • Because your money is safe with the bank and the bank has to return your money back, along with interest.

  • And returns are LOW.

  • Because the interest rate is around 5% to 7%.

  • But remember, if you withdraw your money before your Lock-Down Period then the bank

  • will return your money at a slightly lesser interest rate.

  • Now there is something called as a 'Recurring Deposit'

  • which is just like a Fixed Deposit.

  • The only difference is, in Fixed Deposit, you put money just once.

  • But in Recurring Deposit, you put it every month.

  • For example, if you have decided on Rs. 500/-.

  • Then Rs. 500/- every month from your Savings Account will directly move to your Recurring Deposit amount,

  • which is actually a great option because it instills Financial Discipline in you.

  • You know that every month you have to save this much.

  • Now before we move on to Long-Term Saving Options,

  • let's talk about something that's even more important

  • and that's Health Insurance.

  • This is the first thing that you should invest in because frankly, life is unpredictable.

  • If tomorrow God-Forbid, you have an accident or you are recovering from an ailment

  • then you don't want to beg for money

  • and spend the rest of your life paying that debt.

  • Which is why a Medical Insurance becomes extremely important.

  • If your company doesn't provide it, then get one for yourself and your family.

  • You have to pay around Rs. 5000 to Rs. 7000 every year, which is like nothing.

  • And you will be insured a sum of 4-5 Lakhs to cover your Medical Bills, depending on the policy you take.

  • Moving on.

  • So far we have discussed the Short-Term investment options

  • where you work for money and then save it.

  • But if you save for long term,

  • your money will start working for you.

  • Here are your Long-Term Investment options.

  • What is Mutual Funds?

  • Mutual Funds collects money from people like us.

  • Rs. 500/- from me, Rs. 500/- from you

  • and creates a 'Money Pool'.

  • A fund manager then uses this 'Pool' to invest in Stocks, Bonds, Assets.

  • You don't have to worry about where it is being invested because the Fund Manager takes care of it for a commission of 1% to 2%.

  • Now if you want to invest Long-Term

  • this is a great option because instead of sitting idle, your money is actually doing something.

  • You can either invest in Mutual Funds just once

  • or you can chose a SIP - Systematic Investment Plan

  • where every month a fixed amount, say Rs. 500/- will move from your Bank Account to Mutual Funds.

  • Coming to it's parameters. Liquidity is MEDIUM, because it takes around 1-3 days for you to get your money back from Mutual Funds.

  • Risk is MEDIUM.

  • 'Mutual Funds are subject to market risk. Read the offer document carefully before investing', is correct.

  • Mutual Funds come with a little bit of risk.

  • But as long as you do your research and invest in Long-Term, you should be fine.

  • And returns are also MEDIUM. On an average, in the past, returns have been around 12% to 14%.

  • If you want to know more about Mutual Funds, check out MutualFundsSahiHai.com

  • and if you want me to make a separate video explaining how to invest in Mutual Funds,

  • then comment and let me know.

  • 2. Real-Estate. Is investing in Real-Estate a good option?

  • Depends.

  • See, if you buy a house and are staying in it then it is not an asset because it's not making you any money.

  • But if you buy a house, put it on rent and are using that money to invest somewhere else, then it is an asset.

  • Buying a house in the city, does not make sense.

  • Because here the prices are too high, rents are low and a city is pretty stagnant.

  • But if you buy a house somewhere in the outskirts then there is a possibility

  • that if civilization moves there, then the price of that house will increase drastically.

  • So there is a risk.

  • It may happen. It may never happen.

  • And if you want to buy a house then a friend of mine Ravi, who works in the Equity Market

  • and is also pretty great at investments

  • says that this is something you should decide after you have turned 25.

  • Because that is when you will have a better understanding of finance,

  • your future plans, where you want to settle.

  • Because it's foolish to get tied down to a home loan if you first need money to study abroad.

  • Coming to it's parameters.

  • Liquidity is LOW because it takes more than a Year to sell your house and get your money back.

  • Risk is Medium because you cannot be sure how the price of your house will fluctuate.

  • And returns are from 0 to Medium, depending on

  • whether you are staying in it or are putting it out on rent.

  • Clearly house is not a great investment.

  • But 'apna' ghar, apna ghar hota hai..

  • is a sentiment that most of us have, which is the reason why house prices have gone up drastically.

  • So I am going to tell you how to get your dream house.

  • But before that, the Bonus part.

  • Now that we have discussed various Investment options,