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3 Golden Rules for Saving Money in 2021

In this article we are going to learn three golden rules for saving money. The three golden rules how you can start your savings journey and interns start your investment journey.

Golden rule number 1- FRIENDSHIP TEST

So let’s start with our first gold golden rule to go through a friendship test. Now you might be wondering this friendship test? Let me give you a simple example: it might be possible that meaning of your friends love to go to exotic outings, for they always love to go to big budget hotels. It might not be possible for you that, this big budget hotels might not suit your pocket every single time. And sometimes it feels really awkward you to tell them that, you can’t afford that.

Do you really need to feel awkward? No! It is absolutely ok, to tell them, that you might be not able to come to this hotel today, because it is not my plan right now. Tell them clearly what your plan is. Let’s say your plan is to save 10000 by the end of this year. This is especially for teenagers in the early twenties. Let’s say your plan is to invest in the stock market. That’s the reason why you are saving. Tell them you are the goal. If they are able to understand, then only they are your true friends. If not you know to whom you stay with to whom not to stay with.

Let’s say after 1 year you so that your Demat account, that you have sacrifice something to earn something. They will really feel proud of you. Just ask yourself; is it ok, if you don’t have one or two more pictures on Instagram at some exotic locations. It’s absolutely ok guys. Just remember one thing it’s always better to be rather than just look rich.

Golden rule number 2- BINGE SHOPPING TEST

To go under the binge shopping test. Now. I will tell you quickly what is this binge shopping test. I know many of my female friends who said that we are going shopping today. We are feeling very low. But when we have two bags full of shopping material, that’s where we felt that now i am in a happy state of mind.

When i actually hear them say all these things i really wonder. When you shop some happy hormones is released and you feel better. But is there any other way where you can actually cut down on these expenses and still feel better?

On taking specific reference of a book the power of habits where it mentions that human habit is undergone three typical points.

  1. Trigger
  2. Routine
  3. Reward

Let’s understand this. What is the trigger? For example, my friend feeling very low and then she said that to have a reward of feeling happy, i should have a routine of shopping.

So now let’s understand we have to keep that reward which will be the same. The reward is that you should feel happy. What is the trigger here? The triggers here is, that you are feeling low. That routine needs to be changed.

Now let’s find out what are the alternate options for that?

  • Try to call off your friends whom you have not talked to for last month.
  • Just take your car and listen to your favorite music and go out for a ride
  • Try out to play a sport

Try different alternate things that make you happy. Let the trigger be the same, let the reward be the same, change the routine, that’s where you can save more spend less.

Golden rule number 3- COST PER USE TEST

It is the cost per use test. This is a story about me which happened about three years ago. When i have decided to go to Europe for a tour. When i was searching on the internet i came across some lovely pictures of Europe and many exotic locations. Then i thought that i need to have an amazing camera. And i bought that. But when i got that camera it roughly cost me 50000 rupees. I might have used this camera three times to date. And i don’t remember when the last time i was actually used that.

Now you can imagine this 50000 rupees camera used it only three times. And i am not sure when i am going to use it after today. So this is like 17000 rupees cost peruse. Isn’t that crazy? Now when i look back i feel that, if i had brought a good camera on rent it’s just cost 3000 rupees.

So it’s very important for you to understand that before you go on shopping, to buy some very expensive product, try to check how many times you are going to really use it. So that you can definitely save on a good amount of spending.

Bonus tip

In the entire article, we have talked about how to save. Let’s understand how and how much invest? So let’s take a simple example.

Assume it’s your birthday party. You have invited few friends and you go out to eat domino’s pizza. Assume that you are eight friends. So the minimum bill you are going to spend, around 2500 rupees. Now here splurged 2500 rupees. It’s ok.

But make it a point that what you have spending, at least that amount should go to your investment.

So just to give you an equivalent example, you spent 2500 on a pizza party, why not you invest in the same share which is jubilant food works.

Assume that 10 years ago you alone went to domino’s pizza and you bought one pizza for 250 rupees. At that time dominos share was 250 rupees which are now 2500 rupees. That small size dominos pizza today would have been 10 x bigger.

So invest equivalent amount of how much you are spending.


Share it with your friends and families especially with teenagers or maybe in their early twenties. Help them to understand some basic golden rules of saving and tell them how can start their investment journey by saving small, by investing small but dreaming big.

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