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How to Set Savings Goals

Financial Planning

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January 13, 2023

Savings goals are an essential component of financial health. By setting realistic yet ambitious saving targets, individuals can ensure they are regularly putting money away to secure their financial future. It gives individuals a concrete indicator of whether they are taking control of their finances and helps them allocate resources to reach milestones, such as buying a home or starting a business venture.

Additionally, having a savings plan incentivises loyalty to the goal by providing motivation to hit the target each month. Savings goals also allow individuals to adjust their plans depending on fluctuations in income and other unforeseen events. Finally, having structured savings goals is important for long-term retirement planning since it allows the individual to save according to their specific needs and timeline.

How to Set Savings Goals

Setting savings goals is a pivotal component of creating a financially responsible lifestyle. Achieving these financial milestones will require clarity, discipline, and diligence. This essay outlines how to identify and achieve realistic savings goals.

Establish Your Financial Goals

The first step is to establish your financial goals. Identify your individual needs and desires, such as having an emergency fund of 3 months of expenses, buying a home, paying off student loans, or retiring at a certain age.

Write down your goals and consider what they would take to accomplish, such as a timeline or target balance. Consider the importance of each goal and prioritize them according to value.

Create a Budget

The next step is to create a budget. Track your income and daily expenses for a month, and then create a spending plan based on your desired goals. Establish a realistic budget that covers your basic needs, such as rent and groceries, with the rest directed toward savings.

Cut out unnecessary expenses and find ways to increase income to maximize savings. Set a specific amount to save each month and if possible, then automate your savings to be transferred from your checking to your savings account. This will make saving easier and keep you on track.

With your budget and goals in place, you can now begin to build toward your ultimate goal. Find creative ways to save money, such as utilizing coupons and eating out less. Consider consolidating small debts like credit cards. Since debt consolidation typically lowers interest rates, you will save more money in the long run. If possible, then consult a financial expert who can provide advice on investments and retirement plans.

Assess Your Progress

Finally, evaluate your progress often. This will help you stay focused on your goals and track your progress overall. Make small incremental changes if needed and find ways to motivate yourself to keep going. Re-evaluate every six months to make sure you are making progress toward your goals.

Setting achievable savings goals will require you to identify your needs, set a budget, cut unnecessary spending, and save regularly. With discipline and diligence, you can progress toward financial solvency and a happier, more secure lifestyle.

One Word That Can Make You Rich

Money & Wealth

Shitanshu Kapadia

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January 7, 2023

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What’s the one word, that makes people rich, millionaires, and billionaires?

Let’s take a pen and paper and do one exercise. Think for 2 minutes and write down one word that can make you rich.

Now, what did you write down?

Did you write down luck? Timing, attitude, mindset, product, quality, team.

What did you write down?

I want you to imagine this. If you had ₹86400, in your bank account and someone stole ₹10 from you.

Would you throw away the remaining ₹86390? And try to get back to that person.

Or would you say, you know what forget it and move on?

I think you will say, let’s forget it.

Imagine there’s a bank account, that credits you ₹86400, to your account, every single day.

But there’s one catch.

It carries over no balance. It means whatever you don’t invest, you don’t take out that day, it gets to zero.

Now, what would you do? You would draw every damn rupee now, wouldn’t you?

Well you know, we do have that bank account.

And that bank account is called time.

Every single day, you have, 86400 seconds, to deposit to your life, your time bank.

How would you spend that time?

It carries over no balance and it doesn’t allow any overdraft.

So, Make sure to spend your time wisely.

You see you’ve heard of the concept of Return on Investment.

R.O.I.

Now but here’s a more powerful concept and that is ROTI, and that is Return on Time Invested.

That’s correct.

Now you see most people when they think about that one word, that makes people millionaires and billionaires.

Very often, the word that comes to mind is what?

Struggle, you gotta work your face off. You need to work hard and spend a lot of years to become rich.

And you know what?

Struggle, that’s part of success. That is like the price of admission, to get in the future door.

You don’t even struggle, forget about even trying to get in the game without that word.

That’s just to get your foot in the door. But that’s not the word, that makes people rich, millionaires and billionaires.

When I was getting started, I was struggling.

Right, I was living in a one-bedroom apartment with my family. I was the sole earner and I had a lot to do to come out from the rat race to become financially free.

I had bills to pay.

I was the only earner in my family.

I had to take care of my father as he was suffering from paralysis. The paralysis was mainly due to job pressure.

And I couldn’t wait for 30-40 years.

I had to make some money and I had to make some money right now.

Nothing wrong with struggle, but that’s not what made me a multi-millionaires.

Now so what’s that one word?

One Word That Can Make You Rich

That word is leverage.

I want you to imagine if you want to lift a big heavy stone.

And you try to do it with your two hands, right?

And it doesn’t even move.

And you try your very best.

However, if we can use something like a long pole, use some kind of lever and we can lift that up.

Suddenly, with the same manpower, now I could lift that heavy stone.

That’s leverage.

The definition of leverage is maximum productivity with minimum effort.

Maximum productivity with minimum effort.

So, let me give you some examples.

There are many, many forms of leverage.

Many forms of leverage.

I give you, let’s say four today.

#1 Money Leverage

Imagine you are buying a piece of, let’s say real estate. A property.

And you borrow from the bank.

You put down your 5%, 10%, or 15%, down payment, you’ve heard of that concept.

And then you borrow the rest. Could be 80%, 85%, or 90%, from the bank.

That’s a Money Leverage.

You’re using the bank’s money to create more wealth and to build your business.

Or, you want to buy some kind of new equipment, for your company and you go to the bank.

Or you go to an investor to borrow some money.

That’s a form of money leverage, right? Or it could be a line of credit from the bank, that’s money leverage.

#2 Marketing leverage

Now, what do I mean by that?

Imagine if, let’s say I’m running an ad on social media.

And I create that ad once.

And I run that ad and it’s seen by 1000 people, or, 10000 people or, a hundred thousand people.

So even though I am not there, quote-unquote, marketing, and selling,

but my ad is working for me.

It’s being exposed, it’s being viewed by tens of thousands, or even millions of people.

Yes, that’s a form of leverage, it’s called marketing leverage.

#3 People Leverage

So what do I mean by people leverage? By having the team, hire someone to do the task, that may be your time, your hourly rate that is x amount of rupee and you can hire someone.

You can outsource talents, and you can delegate.

Someone whose hourly rate is a bit lower than you and who can handle certain tasks.

Having that team member, that’s people leverage.

#4 System Leverage

For example, let’s say here for my bookkeeping, I am using Tally, to manage my finance.

To do the bookkeeping.

That’s a form of leverage, system leverage.

Or, let’s say I am managing my email list. I’m using an email system that allows me, to craft one message and it goes out to thousands of people.

Well, that’s an email system.

That’s technology, I’m leveraging technology to grow.

That’s another form of leverage.

There are many, many forms of leverage.

Now, let’s go back to the old question and think about anyone rich, a millionaire, or a billionaire.

They have highly, highly utilized, different forms of leverage in terms of finance, people, marketing, and system.

So that’s the one word that makes people, rich, millionaires, and billionaires – LEVERAGE.

Make use of leverage and become rich.

Why Should You Choose Aditya Birla Mutual Fund?

Mutual Funds

Shitanshu Kapadia

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January 2, 2023

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The stock market is one of the most dynamic fields where a change is evident every now and then. Nowadays, investing, and capitalizing funds and money by putting money in mutual funds and other financial instruments is a popular trend. One such fund which has been in existence since 1994 is Aditya Birla Sun Life Mutual Fund, a fund which has been consistent in returns and revenues.

It is one of the most preferred funds for ensuring a regular income for later years. Since its inception, the returns on investment have been so high that it has become a favourable investment opportunity. Though it took some time to gain popularity, it soon proved to be the most suitable decision for one’s future. Mutual funds and stocks are those financial instruments which give good returns in the long term and stability of investment. By investing in various options like debt funds, stocks and shares, mutual fund companies ensure adequate returns for depositors and investors.

Aditya Birla is a brand name, and any fund supported by this group is reliable and trustworthy. It is because they are professionally managed. The fund enjoys a diversified portfolio which reduces the risk by distributing it among the varied instruments. The fund boasts easy liquidity options in addition to being affordable and reliable.

Let us lay out the crucial reasons why investment in Aditya Birla Sun Life MFs is a prudent decision:

What is Aditya Birla Sun Life Mutual Fund’s history?

Aditya Birla Sun Life Mutual Fund is a fund which was established in 1994 to give the opportunity to investors to safeguard their funds and also accentuate the value of their savings by putting the money in the right avenues. Entering into a JV with Sun Life AMC Investments, Canada, Aditya Birla group ensured that a new product which brought enhanced returns to the investors was created. With a presence in over 280 countries, the group sustains a workforce of over 14000. All these factors render the group a strong standing in the market.

Benefits of Investing in Aditya Birla Mutual Funds

Mutual funds are taken as the easiest method to invest and earn money. They have existed for more than two decades now. With a wide range of investment schemes, Aditya Birla Mutual Fund gives you an extensive range to choose from. The different categories and sub-categories are mentioned hereunder for your reference:

Main categories-

Funds in Equity
Funds in Debt
Funds in Hybrid investment
Other funds

Further, they are sub-categorized as

Funds for wealth creation
Funds for savings
Funds for earning income
Funds to save taxes

As mentioned earlier, there are numerous benefits of investing in mutual funds offered by Aditya Group.

Ease of access:Easy to purchase and redeem, mutual funds make an ideal investment option for depositors to invest. Not only can one start small, but they also give the flexibility to invest as per the available funds. There is an option to add funds in chunks in between, also. Different plans, like systematic investment plans, can be started with less than Rs.1k.

Diversified:By investing in various choices, Birla fund ensures that the risk is distributed among different market investment alternatives. This includes the fund investing in debt and equity, thereby spreading the risk that the investment encounters. In case of a sharp fall, all the investors’ money is not at risk.

Managed professionally:Since the Aditya Group is well-managed by experienced professionals, the funds are handled appropriately, and investment is safe in their hands. It gives the investor the liberty to focus on other areas as all the research, analysis, and buy or sell decisions regarding the funds are managed by experts. The investor may or may not have the expertise to park his funds suitably, but the specialized approach of the fund managers helps to bridge this gap.

Economies of scale:Since these funds are huge, the available funds are invested suitably in large chunks, thereby providing the benefit of economies of scale. An individual investor may not be able to avail of this advantage, but the profit of bulk is passed onto him when he invests in Aditya Birla Mutual Funds.

Wealth Creation:Mutual funds supplement the achievement of individual goals along with wealth creation in the long run. Different options are available for investors to choose from for short-term, long term and even intermittent investment and return planning in addition to planning for one’s retirement.

Selecting the right scheme for investing and parking your funds is of utmost importance as it involves putting one’s hard-earned money to risk. The more experienced the fund, the lesser market risk it will pose. As a part of one’s financial planning, mutual funds now contribute a significant chunk of investment opportunities to let your money earn for you.

Here’s a concise list of the fund options offered under the Aditya Birla Mutual Funds umbrella:

Equity Funds:

Aditya Birla Sun Life Digital India Fund – Fund size 3249 Crores giving a 5yr return of 26.32% approx.
Aditya Birla Sun Life GenNext Fund – Fund size 3277 Crores giving a 5yr return of 18.86% approx.
Aditya Birla Sun Life Infrastructure Fund – Fund size 565 Crores giving a 5yr return of 18.37% approx.
Aditya Birla Sun Life Dividend Yield Fund – Fund size 852 Crores giving a 5yr return of 17.53% approx.
Aditya Birla Sun Life Nifty 50 Index Fund – Fund size 471 Crores giving a 5yr return of 16.47% approx.

Conclusion

Today a variety of options are available to ensure that the money of the investors does not get eroded due to thoughtless speculation in the market. At Aditya, special care is taken to invest right and safely, keeping the return to the investor in mind. The funds have performed constantly and remarkably with an impressive two-figure return assurance in the long term. Choosing from a variety of funds available in the market can be time-consuming and full of risk. Aditya Birla Sun Life is a readymade solution to all your investment woes. So, talk to the Aditya Birla Mutual Fund expert and safeguard your present and future.

Financial Freedom & Financial Confidence – Big Difference

Financial Planning

Shitanshu Kapadia

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December 30, 2022

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Do you know the difference between financial confidence versus financial freedom?

You see I used to believe in this – That financial freedom is what I wanted.

Right? Cause I have read so many books that talk about –

“Oh, you want to be financially free? Hey, do you want to be financially free?

Then do all these things.

Now the definition of financial freedom might change. Sometimes some people might say that always when your passive income exceeds your personal expense. Then you no longer have to work for money, then you are free. Or you have a portfolio of investments or a large sum of money then you are financially free.

Now today I am gonna go deep. Let me debunk that for you, this is what I have learned the hard way.

This is coming from experience, writing from experience to you right now.

Here is what I believe in – first of all let’s look at the two words Financial, Freedom.

Financial Freedom

Let’s just look at the word freedom first.

“How do you define freedom you”?

Some people may say that well, freedom of speech, that I can say whatever I want.

Well, do you have that right now?

Some people might say that it’s freedom of mobility.

That I can go wherever I want.

Do you have that right now?

You see if you are in India or you are in most of the countries in the world. Unless you are in some other country. Chances are you have quite a bit of freedom in your life.

You are kind of already free.

But yeah most people set this goal and say that “hey I need to make a certain amount of money.

I need a certain amount of money coming in. Then I will be free.

That’s not what I am talking about because when you talk to most people.

When and if I sit down with them I sit down with you and I ask them go ahead and define financial freedom for me.

Chances are they will say something along these lines –

“where you can do whatever you want, wherever you want, with whomever you want for as long as you want. Without having to worry about money.”

Chances are that’s what they will say. That’s what I used to believe, but here is also what I have learned.

Just because you are free today it doesn’t mean you are free tomorrow.

Now if you have made any kind of investments that are producing income for you. You know exactly what I am talking about – The stock market, mutual funds, crypto, fixed deposit, etc.

When the investments are doing well you feel like you are the king or queen of the world.

Things are going so well, you feel good, you got money coming in, and the money is rolling in.

You are doing good you are free. But suddenly when your investments don’t do well or your businesses don’t do well; Suddenly you are less free.

So here is what I have learned –

Just because you are free today it does not mean you are free tomorrow.

So back then when I had multiple of these like mini sites on the internet.

I was selling digital products. I was running it on google Adwords. I had money coming in so fast and I was thinking to myself, “Oh wow this is so good I’ve got money coming in. I am free!”

I have way more passive income coming in than my expense, good.

Until guess what?

Changes in google, algorithm changes.

Now suddenly my ad cost skyrockets.

Before it was profitable, now every sale that I make, every digital product

is now losing money.

I was free and then suddenly now I am less free.

Because any changes within my business and changes are happening faster than ever, in our human history because of technology.

So you see, do you see how financial freedom is an illusion? It doesn’t exist.

So you are striving for something that doesn’t exist.

So what you have to realize is, number one you are already free.

You can go wherever you want.

You can drive, you can take a plane, you can do whatever you want, you can say whatever you want.

A lot of people say stupid shit on the internet.

Yes, you have the freedom you are already free.

Unless you are in prison or something like that.

But you are technically free you don’t need to strive for it.

I believe a better way to look at this is not “do whatever you want however you want.” It’s not having to do something when you don’t want to do it.

When you get to a point where you know what I am not going to do that;

I am not gonna be there, I am not gonna meet with this person, I’m not gonna take on that project.

That is a much, much more powerful concept.

So, shitanshu If I should not aim for Financial Freedom what should I aim for?

Instead of aiming for financial freedom here is what I think you should aim for.

You need to aim for Financial Confidence.

Financial Confidence

Financial confidence, now financial confidence is a completely different concept.

Because it has nothing to do with what happens externally.

It has to do with you internally what’s going on within you.

Meaning that you have confidence. You now have the confidence that that you can make money –

Regardless of what happens to your business.
Regardless of what happens to your investments.
Regardless of what happens in the economy.

You are not waiting, you are not hoping an investment will provide for you.

Or a business will provide for you.

You are not-If they do awesome but knowing that you have the confidence if knock on wood; You lose everything tomorrow.

You have the confidence that you can make it back, you can bounce back. In fact, you believe that it took you the first time maybe this much time maybe ten years to attain this level of success.

The second time around you can do it in a much shorter period of time.

You see that’s financial confidence.

When you are financially confident that’s true freedom. Because you know I could go anywhere, I could go into any city, as long as it is a capitalist society.

I could make it. I could go into any industry.

I could make it because you have the skills.

You have confidence, you know what you are capable of.

See that’s what gives you peace of mind.

That you could go anywhere and make it happen.

That you can produce results, and deliver value in the marketplace.

That’s what I am talking about that’s true freedom.

Not the freedom, not the freedom that most people talk about which is an illusion.

Financial confidence is what gives you freedom.