Strategies To Effectively Manage Your Money | Wealth-Building Secrets | Avi Arya | Kamal Jeswani |

Okay, so this is a pizza of a bank FD where you have three different slices. Safety, liquidity and returns. Somebody comes to me and says, I want a bigger slice of returns.

Your quick story and then you tell us yours.

So I'm not sure how exactly this hero introduction works. I'll just tell my story in short, as to how I got into this profession is because people always ask me that you are doing a very nice job, you are earning a very good package. And what made you leave all that and start working in the financial field? Financial coaching and financial planning. So there were two episodes which I saw. One was an episode where we had gone to Gurgaon. I was working with Nissan Motors that time. I was the head of business intelligence. And we had a sales meeting at Gurgaon. There was one person, he was hardly 42. I spoke to him in the afternoon and we were discussing, you know, how he is working really hard for the company. He's not well. Still he came to office until he came for the meeting at Gurgaon from Jaipur. And in the evening he was having dinner, he has a plate in his hand. All of a sudden he started collapsing and he just collapsed immediately. People, you know, although it was a five star hotel, but there was no doctor on call. So he was taken to the hospital. And then all the sales had, you know, the zonal sales at the regional sales. And they were like discussing one thing. How would we inform his family that he is no more? That was really a very, very shocking incident. And everyone was in a state of shock. And the main thing was everyone wanted to support, everyone wanted to help, but everyone had their own limitations of money. So they said, how can we support this family? And then one person said, like, you know, no, don't worry, you know, the company would support him, company would help him. But even company had its own limitations of supporting. So that's where I felt that, you know, there has to be a support system built up by the people themselves, you know, for their own families if anything happens like that. And the second episode which happened was that all the people in the company were told to leave. There was some legal dispute with the parent company. And everyone, you know, the person who was earning 3000 and the person was earning 3 lakhs, both of them had the same question, like, how would I pay my EMIs? How would I pay my child school fees? Why this particular month? You know, because next month I have to pay my child fees, next few months I have to get my father operated. You know, all these kind of challenges were coming in. And I was basically confused that a person who is earning 10, 10, 10,000 rupees has these problems. That's fine, I understand that. But a person who is earning 30 times more, why that person is having the same problem, Right? Good point. That's what made me think. And then I actually got more curious and I started reading the stories of people who won the 1 crore at Kaun Banega Karupathi. What happened to them? And then I got to know that it's not what you earn, it's how you manage it. And that's what is going to create your wealth. And so these two episodes of my life made me take a decision of, you know, what is it? Basically starting a new graph. Because you know, since the day I joined the corporate world my graph was like this. Almost every year I got a promotion and I used to work on my terms and conditions of very relaxed life. Monday to Friday you are going to office. Saturday Sunday you are enjoying with your family. And even on Monday to Friday when you are back, you are back at home. It was super cool life for me. Then I started again from zero. So after working for 18 years in MNCs and then starting from zero again facing the family and I can, I'm sure that you know the entrepreneurs here can be relate to all these things. You know, when you have to start your own journey and if your family is not a business family, if they don't have seen, they're not seen anyone working in business, it's very, very difficult, you know because every time you are answerable not to your boss but to your family. When would you start making money? So that's my journey. And I said one thing that now my graph would not focus on the income. Now my graph would focus on the contribution. And contribution eventually helps you earn huge income. Because that is real in the nature, in the universe. When you are giving a lot, you end up receiving a lot. The only condition is you may not receive from where you have given, right? You will receive from somewhere but where you cannot be sure. So it's like, you know, you are just so I said let me be a farmer rather than being a hunter. So I just, I'll keep on putting seeds everywhere and somewhere. You know, these seeds would start giving. Because now seeds are of different types. Some give flowers in maybe few days. Some give fruits maybe in few years. But it's okay, let me continue doing my work. And so that's how I am here. So I'm doing two things. One is I, I do a lot of complimentary sessions but they are for like, you know, it's like a doctor who goes to a charitable hospital so there he would not charge anything. But the same doctor, when he's in his own clinic, he will charge a bomb because he also has to make money. So when I do it for corporates, yes, I do charge them because I'm doing for Times of India for the last so many years now, Raymond Ford, in fact recently I did for me show and American Cyber System. So for the corporates I do have to charge them but for individual sessions, I keep many of my sessions complimentary so that the objective of doing something good for the society, especially the middle class. Because a middle class person is never approached by professionals or maybe they hardly approached by professionals. Because middle class. Yeah, because financial. So they are like, you know, my friend will guide me about the investment. My, you know, I can ask anyone. I can read newspaper and all. Absolutely. You are so right, you know, so abhi, you cannot change that mindset immediately. So what you have to do is I said let me give a professional guidance to these people waiving of the charges at least for the first 10,000. That was my original decision of 10,000 because already I've crossed 55,000 people. Complimentary guidance. So complimentary guidance, they understand the difference between the professional guidance because the other people, when they come, they are just here to either give you random advice.

You know.

Nobody would tell you or they are here to sell you maybe insurance policies or mutual funds or property. So the marketing language they would have to use, nobody would give you the holistic knowledge about how do, how do you plan your life? And I was really impressed, Avi, when I joined this session because I thought I will ask everyone, do you believe in energies? But when I saw a session starting with the understanding of these energies and working on the mindset, I was pretty impressed that fine, I don't have to say anything about the energy. Avi is superbly guiding them with all, you know, creating those, attracting those abundance using the power of affirmations. So really great.

Awesome.

Thank you so much. This is beautiful. Those stories start. Yeah, beautiful guys, please give it, give a big start. I think we need to give a big, big, big thank you for a beautiful start in the comments. So what we're going to do is that we have about 70 people total Aajka session 91. I think more people are going to join us. So guys please take notes because Facebook pay or Instagram pay, we're going to be asking you what was the biggest takeaway from Kamal Deswani session or comments? So be ready to put your learnings on the Facebook group. And Pradnya and Divyansh and everybody please make sure that you put that question and answer on Instagram and Facebook group as well. And presentation. So I'm going to get out of your way. It's between you and the audience. Thank you.

Thank you so much.

Thank you.

So let me. Pradna, can you please enable the exit for sharing the presentation?

Yes.

Is it visible now?

All clear.

Yes.

Yes, visible. Great. Thank you.

So I'll move away from there. So this training, this disclaimer is very important for the professional that right now what I'm sharing with you is knowledge. It's education, it's not an investment advice. The reason being, I cannot give an investment advice without knowing your background, without knowing your current financial status or your goals. I cannot give any kind of investment advice. So this is knowledge which will help you do your own, manage your own money. So this is all about creating a secured wealth without sacrificing a good lifestyle. Typically we have seen people go at extremes and you know, there are two types of regrets. By the way, are we what language we should be using? Because corporate, you know, mostly we use Hindi language.

English is perfect. English combination is perfect.

Okay, fine, yeah. So there are two types of regrets.

Okay.

The regret of dying early. If you have been only saving money and not enjoying your life then you will surely have that regret if in case something happens at the early age. But then there are people who have another type of regret. And that regret is about not dying early, you know, who have been enjoying life like anything, as if there is no tomorrow, spending everything today. In fact, you know, during our school days we learned that we should save for the future. But what we see now is people spend from the future, okay? I mean that people spend from the future, not save for the future. Which means if you are taking any kind of loan for your life, for your enjoying your life, I'm not talking about business loan. Business loan is for growing your income, okay? That's an investment. But if you are taking loan for like you know, maybe a car loan, a bike loan or a property loan and all that, what you are doing is you are spending today what you are going to earn in future. Because in future also you will be paying the emi. So whatever you have not earned till now that you have committed by taking that kind of a loan for enjoyment, okay? So if we really want to have a good lifestyle, there are Ways out.

Okay.

And which we will be. Which I'll be taking you through by the end of this session. About Me I'm India's first internationally certified financial success coach. In fact, you know, I would like to say something about the commitment part. If you are committed. If you are committed, you know it can bring you result in a magical way which you cannot even imagine. And when I say committed. Committed also includes discipline.

Okay.

Like you know, I created my LinkedIn profile more than a decade ago. And I used to be there. I used to update the profile. I was not aware as to when would I start getting the fruits of that.

Okay.

But I used to do that. I always used to invest money on my education.

Okay.

So when. When you. When you look at this list of education and qualification and certifications. Most of these, almost 90% of these were acquired while I was working.

Okay.

So when I started my job I didn't even have a proper completed BCom. There also one subject was pending. The only thing that time I had was a higher Diploma in Software engineering.

Okay.

After that I started after. You know, while I was working I used to keep investing for upgrading my knowledge. And that used to be from my own fund, not from the company fund. So whatever certification you see, even MBA in finance, MBA in Retail operations. All of these I did with my own money. Because that is the best investment investment on your education.

Okay.

So what commitment can give you? If you go to Google and search India's number one financial coach. Put any name, just search India's number one financial coach. You know what it will give you? I will give you a hint. It will not give you my website which is kamal jaiswani.in it will not give you that. It will give you something else. And that is a result of commitment.

Okay.

So again I'll skip this slide. Also which investment is best? Directly go to the main part of it. Which investment is best? You can reply in the chat. According to you, which investment is best?

Okay.

Apart from education and investment on self.

Okay.

Sip. Mutual funds. Yes. Land stocks. Mutual fund. Land stock.

Okay.

Wow. It's a pattern. Insurance and mutual fund. Gold. Diversified stock. Crypto Index funds.

Okay.

Any. Any other investment? Gold. Okay. Mutual fund. Farmland.

Okay.

So also.

Yes.

Life insurance. Anything now in the present.

Okay.

Very nice. Anything now in the present. Stocks, real estate, Crypto. Okay fine. Let me just share with you. Which investment is best? Okay. And this answer would surprise you. There is nothing called a best investment.

Okay.

There's nothing called as best investment. There can only be a good mix okay? And also, there is no standard mix. So if you have been getting messages like, you know, 10% in this, 20 in that, 40% in this, 50 in that, if you're getting those kind of messages, okay, that could be a good mix for that particular person. It may not be a good mix for you because there is no standard mix. Everyone would have their own different mix, and that would depend on their own current financial status and their financial goals, okay? So their current financial status and their financial goals, okay? Because if you see what is the financial plan? Financial plan is nothing but a journey, okay? From point A, that means the place where you stand right now, okay? Your current financial status, which includes your goals, your investments and all that. And from this point, you have to reach another point which is where your goals are being fulfilled. So from your current status to the desired status, that journey is called a financial plan. When we are looking at how to arrange the money so that I get the money when I need it. Cash flow is always the king. Investments are. Assets are only in the interim. You know, even if you buy land, ultimately you do not consume land, okay? What you consume is the cash flow coming out of it. Even if you invest in mutual funds, ultimately what you do is you redeem those mutual funds to get the money and utilize it, okay? So these assets are only in the interim. So this mix would always be determined by your own financial plan, okay? So for this, what you need to understand is the most important thing is three dimensions of financial assets. Typically when people come to me and they say, sir, I want to invest this much, what do you think? They ask for an investment which will give dash. You have to fill the blank. An investment which will give me dash.

Okay?

Returns, okay? Do you think it only returns? Do they ask for returns or do they ask for good returns or Super, Okay. Returns and security fees and returns. Okay? Higher returns. Double my money. Yes, double my money is a common question in the bank. All three.

Okay, great.

No, Moumita and Prabhaka, you'd be surprised. People do not ask me for monthly cash flow. Ideally, that should be the right one, you know, ask for a monthly cash flow. But they always ask for returns. And yes, there are people who also ask that, you know, I cannot take a chance. I cannot take risk. Even at the age of 23, 24, people come to me with a package of 25, 30 lakhs. And they say, sir, suggest me a good investment option where there is no risk. Do you think that person is wrong? Obviously not. Okay, they are not wrong. Yes, So I, I read one statement which said they would ask for returns higher than bank fd. Yes, Ashish, we would come to that point. Absolutely. People always ask for returns which are higher than bank fd. Okay? So for that we need to understand, because by the end, we know by the end of these understanding of this topic of three dimensions, you would be able to tell me which investment is best for you, okay? So you have to understand this correctly and completely. Don't miss any word of it, okay? Because these three dimensions, you know, help you play with the investments with the assets. So one dimension is obviously the returns, the yield out of it. And the returns could be in the form of interest, bonus, dividend, capital appreciation, you know, different form, but these are the returns. So what you get out of that asset. Another is the safety. Safety dimension is, you know, safety is of two types. One is safety of your principal and another is safety of the returns, okay? Both these things are there. One is safety of your principal and another safety of the returns. And whenever a person invests money, he always wants higher returns. But the moment he comes to know that there is a huge risk to that investment, he would be like, even if I am able to get my principal back, I am perfectly fine person keeping money in the bank FD for five years. Now he comes to know that something is happening to the bank, he would be like, f at least give my principal back. People keeping money in the chat fund, okay? And one fine day they come to know there is a problem, immediately forget about returns, you give me my principal back, okay? So safety of principal and safety of returns, both these things are very important, okay? And the third dimension is safety means guaranteed return from them. No, safety could be one is whatever amount you have paid that has to be safe. So that is principal safety. And when we talk about safety of the return, that at least some money has to come out of it, okay? Amount may not be fixed, it may not be a guaranteed 6%, 7%, 8%. No, but at least they want that, you know, at least I should be earning something out of it, okay? And the third dimension is the liquidity. Liquidity means how easily and quickly you can convert that asset into cash. Because as we discussed earlier, that assets are only internal. Ultimately you have to convert that asset into cash so that you can consume, you can buy products. So liquidity is how easily and quickly you can convert it into cash without losing much of its value. Without losing much of its value, okay? So if you look at a bank fd, if I want to break it hardly any charges. There's a very small amount which is charged as a penalty.

Okay.

For breaking the FD earlier. But if I want to sell a property, if I want the money tomorrow and you know what I will have to do. There's a word for it. Can anybody share that word with me? That if I have to sell the property overnight, what would I have to do? Liquidate. Emergency. It's called Kori KE Dham. Very good. Yeah. It's called distress selling. Yes. Yes, Mita. That's the right word. Distress selling. Which means you are willing to sell it at Kori KE daam. Or maybe a lower. Lower than the market price. Okay? So you are losing a lot of value out of it. So that means it does not have the liquidity. Now since you have understood what are these three dimensions and just imagine that this is a pizza.

Okay?

This is a pizza of a bank FD. So in FD you have around 6% returns.

Okay?

In a bank FD you have 6% returns up to 5 lakh rupees. Your amount is insured. So if you have up to 5 lakh rupees in a bank that is safe.

Okay?

Because I. I know about a client. You know, when he came to me he had 1.25 crore in Bank FD. Because his assumption was that you know, there I want safety of my money. I said you have kept 1.25 crore in that bank.

Okay?

If anything happens to that bank they will give you only 5 lakh rupees. The 1.2 crore anyways is at a risk. Okay? But at least 5 lakh rupees safe. So safety part is also there. Returns is also there. 6% and liquidity there. Because you can withdraw the money anytime. You can break that.

Okay?

So this is a pizza of a bank fd. Where you have three different slices. Safety, liquidity and returns. Now only look at this circle. Don't look at anything else. Don't think of any kind of investment like property, mutual fund. Don't think of that. Just look at this circle. Now this is a pizza. You know where somebody comes to me and says I want a bigger slice of returns. I want a bigger slice of returns.

Okay?

Without compromising on safety. I do not want to take any risk. But I want a bigger slice of returns. What would I need to do to this circle?

Okay?

To this pizza. To ensure that he gets a bigger slice of returns. But without compromising on the safety. What would I do to this visa? To ensure that he gets a bigger slice of so Anybody can reply to this. I cannot increase the size of the pizza. Very good. So you got it right? That compromise on liquidity. Okay. So what happens is I reduce the liquidity to increase my returns. Now this earlier pizza was a pizza of fd. But if I'm reducing the liquidity to increase my returns this pizza is becoming a pizza of what? PPF. What happens in a PPF? 15 years lock in period.

Okay.

Or tax saving, mutual funds. 5 year, 3 year lock in period. Tax saving, FD lock in period.

Okay.

Or your PF, you get more than 7.5%. Now I think it's 7.8 or 8.1% return on a PF. A VPF, EPF.

Okay.

So you get higher return. But what you are doing is compromising on the liquidity. If you do not want to compromise on the safety. If you are not willing to compromise on safety then you have to reduce the liquidity to get higher returns.

Okay.

Now again come back to the visa of that bank. Fd. Another person comes to me and says sir, I should be able to withdraw anytime.

Okay?

For me liquidity is very important. But still I want a bigger slice of returns. I want a bigger slice of returns. But for me I should be able to withdraw anytime. Maybe I want to buy a car or maybe I want to do something.

Okay.

Okay, fine. I'm getting all the answers and all the answers are same. Yes. Compromise on safety.

Okay.

So what I do is I reduce the safety to increase the returns. Now this pizza is of what you tell me in the chat in this visa where the returns, the safety has been compromised to increase the returns but without compromising on liquidity. Okay. Vikas says stock market, mutual fund. You. You all know about it. I don't have to tell you anything. You all know it. Yes. Yes. It's mutual fund stocks. You know, what happens is you may have the liquidity, okay. But the safety is not there. Like somebody who invested the money eight months back. And if I tell him that fine, I need your money. You could withdraw it today. He will have to withdraw it at a loss.

Okay.

Somebody invested in the LIC IPO in the month of May and in the month of June. He wanted the money more than 28% loss. So it can give you liquidity.

Okay?

But what happens is the safety is compromised.

Okay?

Safety. In fact, you know, some people come and try to, you know, argue with me, discuss with me on, debate with me on the. You know that there are certain mutual funds, you know, which are very safe.

Okay.

Like for example, Child education mutual fund. Okay, so that's of another amc. I would not name the amc. But then, you know, if you, if you look at the child, children mutual funds of any amc, you know, on tv, whenever they show the mutual fund ad or even if you listen on the radio, they would always say one statement. And what is that statement? What is the statement? After every mutual fund add, there is one statement. Mutual funds are subject to market risk document. They say mutual funds are subject to market risk. Please read the offer document carefully. Forget about carefully. How many of us actually go and read the document? Forget about carefully. I'm talking about how many of us we actually read the document. Forget about completely reading the document. Do we even look at the risk o meter? You know, SEBI guidelines? Because of the SEBI guidelines, they put one, you know, a riscometer on that. Just the way if you look at your car dashboard, it shows that you know the at what speed you are going and there you'll see that you know the line which will show that pine of the red or blue and all that, okay? Same happens on your bike also. Similarly, we have a riscometer and it shows the line, okay? If it is on the right hand side, right hand side means very high risk, left hand side means low risk, okay? And right hand side, towards right hand side, you know, there's something called moderately high risk. So even for people who cannot read, who cannot understand English, even if they go and just look at the risk o meter, they should be able to understand that what risk they are taking, okay? So if you have never seen the mutual fund offer document, just go on Google today, whichever mutual fund you have invested in, just take up the document of that from Google. You will see the risk o meter. So for that child education plan I showed her, I said, look at the risk o meter, you know, where is it, where is it pointing? It was at moderately high, moderately high. And then there was a line which was written. The investor understands that their principle, not the return, their principal is at a moderately high risk, okay? So it means we have to understand that when we are investing in mutual fund, we are taking a risk by investing for a long term. If you are putting it for long term, we are reducing the risk, okay? We are just reducing the risk. Okay, question, like, you know, if something happens to a bank, what happens to the items in the locker? You know, the lockers are supposed to be, you know, where you are supposed to keep only documents. You are not supposed to keep any money and gold. So if anything happens, the bank you know, just they take off their hand. They say we don't know what you had kept. We are not seeing whether you have kept gold and all that. So you know, it becomes very, very difficult. So lockers are. Yes, supportive. Also answered his question that yes, lockers are not insured. So now let's look at the again. Go back to the FD PISA which is a very very common, very, very popular. Everyone puts their money in that. So understand from that aspect only. So again we are back to the bank visa. Now third person comes to me and says I don't care for safety. I don't care for liquidity. Can you help me get higher returns? So I'm sure you would have guessed it by now. That I can reduce the safety and liquidity. I can reduce the safety and liquidity both.

Okay?

To give him higher returns. And this pizza is a pizza of what? You can reply in the chat. This pizza is a pizza of what? No, it is not equity. It is not life insurance. It is not stock. Yes, it is property. It is property.

Okay.

Because there we do not have liquidity. We don't have safety. Which means if there is an encroachment in the area.

Okay.

Or if there is a dumping ground. Because this has happened in Mumbai near Pawai Hira Andani area. A very famous area which was being developed. And then all the surrounding area also, you know, the rates went very high. And one fine day they decided to move the dumping ground over there from Mulun to that Powai area. To the Kanjurmag area. Which you can say immediately the rates went down.

Okay?

Nothing else changed. Only the thing was that dumping ground came in that area. Similarly the areas where the airport comes up or the metro station comes up, the rate changes. So there is a risk.

Okay?

We cannot say for 100 that properties are safe. No properties do have a risk. And if not other is then risk of encroachment and liquidity. You have invested in a property 1 crore and you want it today you cannot get it. You have invested in kept 1 crore in mutual fund. You can get it today. You have kept 1 crore in Bank FD. You can get it today. You have kept 1 crore in gold. You can get it today. But if you put 1 crore in property, you cannot get 1 crore. Then you will have to go for a distress selling. It does not even have a partial equity. Let's say you have kept. You have bought a property of 1 crore and you need 10 lakh rupees. You cannot go and sell the bathrooms. Fine. I want 10 lakh rupees. Let me sell one of my bathrooms. No, you will have to sell the entire flat. So it does not even have the partial equity.

Okay.

So now having understood these things that how this works, how the three dimensions work, let us understand how to utilize this knowledge for our investments.

Okay.

Let us understand how to utilize this knowledge for our investment. Now looking at these three dimensions, let's say if you want to keep emergency fund. Okay. Somebody has given example of MB Valley also got into some problems. Yeah, these do happen. Yeah. So now coming back to this point, let's say if you want to keep emergency fund and for that you need to decide where to keep. So for that financial asset where you are keeping your emergency fund, what are the dimensions which you would focus on? What are the dimensions which you would focus on when you are parking your emergency fund? Yes, you got it right.

Perfect.

Safety and liquidity. Yes, you will focus only on safety and liquidity. When it comes to emergency fund, you will not focus on the return. And that is the reason some of your emergency fund is in cash, some is in in bank saving account or maybe fd. Why? Because there the focus is not on the return. The focus is on safety and liquidity. Good, you understood that point. Now let's look at another goal.

Okay.

One was that emergency fund goal. Now let's look at another goal for your retirement.

Okay.

For your retirement. Now you know that today, whatever you are spending, you are spending on two types of expenses. Your expenses are. One is for the need, another is for the lifestyle. One is for the need, another is for the want.

Okay.

One is for the need, another is for the expiration. So you have these two types of expenses happening at present. Even these type of expenses would remain in the future. Also today you are giving that money for those expenses from your current income. After retirement, you will have to give that money for those expenses from your accumulated income. Okay? But you will have to make provision for that. You will have to spend money on that. So in future you will have the need. You will have the wants and aspirations. And what are needs? So to give a simple example, whatever amount you spent during lockdown was mostly on your need. Because that time there were no restaurant, no hotels, no malls, nothing. You were spending on needs. And what are those needs? Typically, people give me an answer. Food, clothing, shelter. Sorry, that's not the only need. Nowadays, in addition to these three deeds, there are three. More. So apart from food, clothing, shelter, there is Internet, electricity and entertainment. It's such a big need that the government of India had to make provision for playing those Ramayan and Mahabharata and all that. And yes, the OTT platform, they had a huge business during that period, Netflix and all. So now we all understood that our basic needs are not food, clothing, shelter. Apart from food, clothing, shelter, we also have electricity, Internet and entertainment. Yes, health expenses are always, always, always there for as a need. Okay, so we need to plan for these things even in the future after you retire. So having said that, now if you have to plan for your retirement needs.

Okay.

We will have to do two types of planning. One is planning for the retirement needs. Another is planning for the retirement lifestyle aspirations, wants. Like buying a farmhouse, going for a world tour. Okay, so these are one, these are desires. So we have to plan for those also. We have to plan for needs also. When you are planning for retirement needs and main assumption is your retirement is after more than 10 years. Okay, I repeat the assumption after more than 10 years retirement. So retirement needs. If you are planning which dimension you would like to focus on, which out of the three dimensions, which dimension you will focus on? Okay. Very good. So yes, safety and returns. The perfect answer is safety and returns. Why? Because you are planning for your retirement need and which is after 10 years. So you don't have to worry about the liquidity. What you need is the safety and the return. Safety. Why safety? Because it's for the retirement need. Now if I am planning for the retirement wants, world tour, farmhouse and all those things, then which dimension I would be focusing on? Rajesh says returns.

Okay.

Any other answer? Returns. Returns. Yes. Yes. Yes. You all are right. You all are right. The answer would be returns. You will focus only on the returns part. Why? Because you are planning for a want and you are allowed to take some risk over there. Okay, so you are allowed to ignore the safety part when you are planning for your wants. Because you know that kind of flexibility is given to you. Because these are want, these are not your needs. But when it comes to needs, you cannot ignore the safety part. Good, you understood that. Let's talk. Let me talk about the another big goal or another goal where you require big money. Apart from retirement, there is another goal where you require big money and that is child education. Assuming that you need money for your child's higher education after 10 years then you know you need some money for Indian. Because Indian education is something which we have to provide our child. At least Indian education. Although we may have the aspiration of providing them maybe a broad education, overseas education, we might have that aspiration let's say that you know, abroad education cost you 1 crore. And Indian education would cost you 25 lakhs. So there also we would have to do a planning two ways. You know. One is the first 25 lakhs we have to plan in one way. And the remaining 75 lakhs we have to plan other way. So now when I'm Planning the first 25 lakhs, which dimension I would focus on? See, I'm just asking and you are all answering. So you know it. Safety and returns.

Okay.

Any other answer? Safety and returns. Perfectly right. Safety and returns. Why? Because I am planning for Indian education at least 25 like minimum that the need. So that that's where I would not take a risk. But while I'm planning For the remaining 75 lakhs I can take a risk. So there I will focus only on the returns. There I will focus only on the returns.

Okay?

Because there I can take a risk. So this is how you will know. You know which investment is good for you. It will depend on your goal.

Okay?

You have to look at whether that goal is immediate or it is after some time. If it is immediate then you will have to look at liquidity also. If it is immediate then you will have to look at liquidity also. You have to focus on liquidity also. But if it is not immediate, you can ignore the liquidity. Safety. When you have to focus on safety, when it is a financial goal is a need, then you have to focus on safety. When it's not a need, it's a want, it's a dream, it's an aspiration. Then you can ignore the safety part.

Okay?

That's how you can do your planning. Because returns are anyways you will focus on. But where do we focus the most for a particular goal? That's how you can decide based on these three dimensions. If it is the three dimensions are clear, please type Y in the chat window. Why means yes if it is clear.

Okay.

So that we can go to the next point.

Okay, fine.

Thank you so much. We'll go to the next point now. Okay. So what is important for all of us is whenever we are planning for a. For a creating of wealth.

Okay.

We have to understand that there should not be any hole in our bucket. If I'm filling a bucket with water. But if there is a hole in the bucket, what will happen? I will keep trying. I'll spend my entire life, you know, putting more water in the bucket and will go away. So what it means is even when it comes to Your financial wealth. You have to ensure that first you basically plug all those holes in the bucket. So what are these holes? If you know, I'll share some stories with you which will help you understand quickly what are these holes. One person, you know, he was because he was at one of the largest media house. I would not name the company. So he was a director over there. He extended after retirement he extended his thing for one more year. So he continued working for one more year. But he did not get the health insurance that time because health insurance was only for a particular age.

Okay.

So since he exceeded that one year he could not get it. And that year the person fell sick. He was in ICU for a few months. 60 lakh rupees which he had saved working his entire life. They all were gone in that one year. So now tell me what is that one hole in the bucket? Thank you so much Dhananjay for that compliment. I really love that you are decoding the kind of investment like abc. Great, great example. So thank you so much. Yeah. So now let's come back to the. What is that whole health insurance. Yes, you got it right. So everyone should have at least some health insurance to take care of them if there is any such kind of requirement. And you know people saw that during the COVID time one person getting admitted in Hospital spending 9 lakh rupees in just a matter of two weeks. So we saw those cases, people you know having an health insurance of 2 lakh rupees and they are asking for charity. If you would have gone to any charity website on, you know, on Facebook also there are pages where people are requesting for help, financial help. These are the people who also used to have that 2.5 like 3 lakh health insurance and that was consumed because that was 2 lakhs. So at least 10 lakh to 25 lakh health insurance will be there. My, my health Insurance cover is 75 lakh. Second hole is a family, very good family, wealthy family. He was a film star. A film star as well as a music musician I think. Adish Srivastava, he passed away and then one day his wife has to had to make a statement that you know, now I will have to start working to make the ends meet. So what is that other hole in the bucket? Okay, now many people have used the word term insurance. Please understand it's life insurance. It's not term insurance. Okay, what you have been reading probably it's a marketing language that go for a term insurance and buy a sip. Don't make the investment in this insurance. So these are marketing statements, okay? But we have to understand the hard fact. It's not term insurance, it's life insurance. Term insurance means only for a particular term, okay? And now where does this come from? It comes, you know, because most of the knowledge we get in India is from the books written in us. And you know, that's where the culture is different. After 18, the child would go and stay separately. The parents are anyways living separately. They don't have kids staying with them. In India. My mom is 60 plus and she told me, Kamal, can you go and buy one more life insurance plan for me? Because when I die I want to leave something more for my kids. That's what my mom said, okay? At the age of 60 she's saying, can you buy one more life insurance? So in India we don't need for a particular term, we need it for lifetime or maybe as long as possible, okay? So that whenever we leave the world, we leave something for our kids, our grandkids and all that, okay? When we leave the world. So we'll say we will use the word life cover rather than using term insurance. So health insurance, term insurance. Somebody fell down from the stairs, okay? And he was hospitalized. And after that he was on bed rest for three months. And that time the income was not coming. So if he would have had a personal accidental cover, you know, every week he would have got at least 15,000 rupees. So I'm giving it from my own example because I have bought one personal accidental cover for one crore. Where if any temporary disability like fracture and all that, which is temporary. So then 15,000 rupees per week is given. If permanent disability like if even if there's a loss of one finger, then two lakh to four lakh rupees. If two limbs gone, then entire one crore rupees. If accidental death, then family gets the one crore. And for that entire package I'm paying 9,300 rupees per year. So that is personal accidental cover. And also if there is any kind of income loss like what happened during COVID businesses, you know, they suffered the losses for a shorter period. Even jobs, you know, people got salary cut 20%, 50%. I'm talking about big companies. They're also they got 50% up to 50% salary cut, okay? Some somewhere the salaries were delayed. So during that time if you do not fill one particular hole, you will have to borrow money at a high interest rate from people, okay? So that hole is called an emergency fund. So we should also have an emergency fund. You know, if there is any kind of a temporary income laws or income reduction, we should be able to type through it. Emergency fund is not for hospitalization. For hospitalization we have health insurance. For any kind of death in the family, we have life insurance. And for personal, accidental and all that, we have personal accidental cover. For critical illness like cancer, we have cancer cover, okay? But for income loss or income reduction for a short period, we have the emergency fund. So that is all about wealth protection. And once you have plugged that hole, now whatever money is left, you can focus on wealth growth also, okay? So you have to ensure the balance between the two. And how do we ensure that we are able to save more money without compromising on our lifestyle? So that is the last topic for today. We have to understand the difference between need and want to. Can anybody please share in the chat? What is the difference between need and want?

Okay?

Exceptional optional need. Basic needs are for survival, daily necessities and wishes. Needs are in emergency. Yes, so we already took that example that whatever you spent during lockdown was the amount on the need, okay? And the remaining is your want. So want the, you know there is a very, very powerful plus point in the want. Very, very powerful. And plus point needs are non negotiable. That means if somebody is hospitalized, you need the money, you will borrow it even at higher interest rate. To give that money, you have to pay the child's education fees. If you don't have the money, you will borrow it to pay that. So needs are non negotiable. They don't give you any kind of freedom, okay? You, if it is a need is there, you have to pay it compulsory, okay? And whereas a want that gives you the power, that gives you the freedom because you can play with it, you can reduce it, you can cancel it, you can postpone it, you can do anything with the want, okay? To ensure that you are able to save more money. So want gives you the power because wants are negotiable and needs are non negotiable, okay? A need. We all know what are the need. A want could be, let's say if you want to buy a mobile phone today, whereas your current mobile phone is working fine and still you want a better version, better upgraded version and all that. So that's a want, okay? Maybe you read it somewhere, they find there's a new mobile phone in the market. Or maybe one friend showed you that. Or maybe you, you, it could also be a smart tv, okay? You, you already have a smart tv. But then a new version has come up, a new company has launched, a smart tv. And now you want that. So that's a want. So how do you play with that? How to reduce our expenses? First thing, whenever the want comes in your mind that I should buy this, whenever it's a huge amount, okay, you should just ask yourself, first of all, you have to wait for a few hours. So don't buy immediately. Wait for a few hours, because that want could be coming from an external force. And that force could be maybe an advertisement on the TV or a radio, or your friend carrying that particular thing, or maybe some discount offer running on Amazon, Flipkart and all that. So that could be an external force. So to ensure that the power of that force is reduced, we have to wait for at least a few hours. And then ask yourself, do I really want it? Do I really want it? If the answer is yes, I really want it. If the answer is no, you are saved. But if the answer is yes, I really want it, ask yourself second question. How much can I delete? How much can I delay it? And the answer has to be, you know, it cannot be a no, I cannot delay it. It has to be how much? How much Means it could be one day, one week, six weeks, six months. Whatever answer you get, you are actually getting time for two things to rethink and to arrange money for it. And probably while you are arranging money for it, you might rethink about it, whether I really want it or not, okay? And that can actually ensure that your expenses are less. Third is make a monthly and annual budget. If you're not able to make annual budget, make a monthly budget that in this month I would spend this much amount, okay? And then based on that, you will notice that automatically your expenses are reducing. And for your regular wants, like going to restaurant, going to movie, I. I would not tell you to completely stop it.

Go, okay?

Even for vacation, go there. But if it is a want, then you have the flexibility to use that power. Reduce the frequency of that. Instead of going four times in a month, maybe you can go two times in a month, twice in a month, okay? So by reducing the frequency, you are ensuring that you are not killing your wants. You are still having a good lifestyle, okay? But at the same time, you are able to save more money. Fifth point, wherever you know that. You know, many a time people say, sir, I don't know, I don't want to do it, already I'm running in debts. But still. So for those people or people who call themselves as shopaholic for them. At least for the next few months. Next few months, start using cash instead of card or digital wallets. Because when you are using the card or digital wallet, your brain is not registering any kind of pain or pleasure. It's not registering it.

Okay?

So if you really want to rewire your brain, what you should do is you start using cash. So whenever you spend money, you first of all you withdraw the money from the atm, you count that cash and when you spend it, you give that cash.

Okay?

When you come back, you count your cash. The cash is left. Now the brain would register that pain that, you know, the pleasure when I got the money, entire money from the ATM and the pain which I felt when I gave that money to the shopkeeper and the pain which I felt after, you know, coming home and counting that money, it is less. So that pain and pleasure, you know, when it gets registered, the brain automatically gets rewired to reduce your expenses without you realizing it.

Okay?

So that's the only thing I'm not telling them to cut the expenses, I'm just telling them to start using cash at least for the next few months. Because by the time the brain gets rewired and after that you can come back to the digital format. So yes, during this period there would be some losses and the loss would be whatever points you are getting on your credit card and all that digital wallet and all that, that would be lost.

Okay?

But then that's the temporary one, okay? And that has to be there. If you want to save 100 rupees, then you should be willing to forego that 5 rupees which you are going to save.

Okay?

So now an action item checklist for all of you which you can, you know, do it at your home. These are very, very important things, you know. So that's why I, even if you want, you can take a screenshot of this, I'll just explain to you in short capture details of all your insurance policies and store it in digital as well as physical format. One mistake. Lot of people LIC had more than a few years back, I'm talking about it had more than 12,000 crores unclaimed amount. In fact, that day I read an article where it was talking about more than 75,000 crores unclaimed amount with banks, insurance companies and all that. Why? Because people do not have that record at one place and their family is not aware of it. So your family should be aware of it. So what I have done for myself, I have made a list of all My insurance policies, my. My insurance policy, my wife's insurance policy, parents insurance policy. I have mailed that Excel file to myself and my wife and also my sisters.

Okay?

So even they have that list. Because many times couple goes together and they may not come back. So there has to be someone. Okay? So my. My clients, what they do is they send one copy of their file to me also. And it's very, very useful. So one use it. What happened was last year one CA had sent his file to me. He was hardly 45, 47. And last year October, you know, he had brain stroke. He had the BP issue and all that. So he had brain stroke and within three days he passed away. So his health insurance also was taken from me only. So I immediately ensure that he gets his family gets that claim amount. Okay? That hospital releases the body and all. And for that person, his wife said, I do not know what are all his investments or insurance policy. I said, don't worry, he has sent one Excel file to me. I will send it to you. Another challenge came in was like, you know, some places his wife did not have the password for opening certain files. So I told her, don't worry, he had sent me the password also that this is what he keeps as a password for his financial documents. So you can use that. So I'm talking about a recent example, just last year, October. So you know, these cases do happen at any age. So don't wait till you become old. Give it today itself.

Okay?

So capture details of all your policies and store it in physical and digital. Physical format means in one locker. Second is make a list of all your financial goals. Make a list of all your financial goals, okay? Because that will tell you where do you have to reach. And then make a list of your investments. Typically when I ask people how much amount you have in your bank, I do not know. Let me remove all the FDs and make a count of that. So they remove all the FD documents and then they tally them and to find out the amount. That should not be the case. Okay. Ideally, your list of investments should be there in Excel file. So make a list of all your investment and against each investment, assign the goal that for what purpose you are going to use that investment. And how would you assign the goal based on the knowledge of three dimensions. If it is a need, a future. If it is the goal is a need, and if it is after 10 years or 5 years, then which investment tool option should be used over there. So use that knowledge to assign the goal for each investment. Create an emergency fund. If you are a salaried person then six months. If you are not a salary person, if you are a business person, then at least one year of your household expenses plus EMI should be there as an emergency fund. It could be kept in cash bank liquid fund. Okay, so these are the options. Life insurance at least 200 times. Sorry, today we do not have much time to explain you the logic behind it. But understand there is a logic behind it. It has to be 200 times of whatever you are giving at home every month. Or you can also use the formula of 200 times of your monthly take home. Okay, so that would be the life cover health insurance 10 lakh to 25 lakh family floater. At least I have helped people buy health insurance even like, you know, 50 lakh health coverage just for 12,000 rupees by buying a top up plan. So that can also be done plan secured investment for your needs. And you can use other options for your wants. Okay, and so this is a slide which I use in my corporate training. So here somehow I'm using that slide. Because yesterday evening only I got to know that we are doing a session today here. So that's why. So this complimentary guidance I could not remove it. So let me retain this for you. Yes, we. There would be a complaint entry guidance given to anyone who would be sending an email to connect.

Okay.

Because I want to finish that goal of 1 lakh. So 55,000 is already done and there will be no charges. 15,000 are the charges usually, but they will be waived off completely for your group. How do I know it? So a few gifts, you know from my side. Because that is something which I'm doing for the society. And so even you all can get it. Gift for you is all about health insurance. Would be a session, you know, even if you have the health insurance policy still you should join the session to understand the finer points of it. So one. One example is you should have your health insurance card, mediclaim card in your wallet or purse every time. Okay, Every time. Because you never know when that would be needed. And that time your family. Because this one person, he actually he was. He met with an accident and he went into coma. Now his wife was not aware where the health insurance policy and all that. And they were struggling. They were trying to arrange money so that they could save this person. And this person already had a health insurance of 50 lakh rupees. But there was no health insurance card in his wallet. And wife was not aware where the health insurance Policy and this poor lady had to struggle to arrange money to save the person who had already been smart enough to buy health insurance but not smart enough to keep that health insurance card in his wallet. Okay, so this is one of the point. There are many more points which I share when in the health insurance session. Protection from digital frauds. Again one recent example happened where one lady who had attended my training at Raymond Co. Her father was saved of a digital fraud because they were aware as to what kind of fraud is this so they did not pay the money. And third is the attract money because now you all work on the energy so attracting money using the switch word. So I share switchword, the modern day mantra. Again that's a thing watch which I do for society. So these three sessions would be complementary and you can scan the QR code or you can go to this link. So this would be exclusively for the people who are attending the avaria session. So I believe that's it from my side I hope. Yeah, I think we have exceeded the time. So now I think we are open to the question answers.

That has been fantastic guys. Can we give a big, big, big thank you in the comments? That was really, really simple. Guys, Facebook group, what has been your biggest learning from Kamal Jaswani? So can you just go to the Facebook group and type what you have learned? And also Pradnya, if you can share the link of the Facebook group with Kamalji so he can also join the group or group. So Pradnya will just join.

There we go. Sure.

And just give him access to the group as well. And I'm going to take a one minute break. One minute to type in the group. What is the biggest thing that you've.

Learned.

After that One minute. Can I answer some of the questions in the chat?

Absolutely.

Absolutely. So after one minute we will be answering. Let me have a at least.

So guys, Facebook just say done. Facebook group, just say done once you have. Okay. And I will also just accept Kamalji on that group. Just one minute.

Can she send me the link on WhatsApp?

Yeah, can you send the link on WhatsApp please?

Parth.

Very good. Prabhakar ji, as always you have always given the right answers. Thanks Amit, Very nice. Om Prakash Sharma. Momita. Very good. Mahantesh, Harshit Santosh. Guys, you know what then it gives a very big thank you to the guest. Because you've given the right. You spend time, you know, once you write it, you realize what it is. So anybody who is not Ashish Begoria, thank you for Always, always. Ashish is always contributing whenever he is ready. That's great Ashish. Anybody else? There are 66 people over here don't shy away from because Kamal is also going to join us over there. Rajesh Gupta. Very good. Purti, you're obviously a champion at this. Poorty already knows a lot of this stuff. She's from the bank. But then ready Reckoners, validations from experts are always very important. Financial pizza. J says financial pizza Mantesh. Very good. Okay. So Kamal, have you been able to join our group?

I'm just going to get the link on WhatsApp or maybe you can email to me because I'm not able to open it on my laptop here.

Oh, no problem. She'll send it to you. Okay, so now we can take some questions. Guys, we have good 10 minutes for Q& A. Go for it.

Okay, so I can see one question Ashish says. What's your opinion about generating money from trading and then investing in stocks or other. Other assets generating income can be done from. If you're looking at a normal trading. I'm not, I'm not sure whether you're talking about the share market trading. If you're looking at the normal kind of trading, yes, you generate money from there investing in stocks and other assets. It would depend on your goal. Why? Always the why comes first and how comes later. So if you know that you are investing it for growing your wealth or you are investing it for buying a property or buying a bungalow and all that then you know it's a want, it's a dream, it's an aspiration. So for that, yes, you can invest in stocks and other assets. But just be careful about when you are putting your money in stocks. Don't go by the tips because the tips would always leave you midway. Don't go by the tips. If you have time to invest in acquiring knowledge, learning about, you know, technical analysis as well as fundamental analysis and willing to put in the time and effort then go for the stocks. Otherwise a safer option would be go for the mutual fund where somebody else is doing that work for you. I hope that answers your query. If not you can again ask till that time. Let me go to the second one. Prabhakar says in the marked up version of premiums on health insurance today, isn't there a trade off between premium versus some issue somewhere? I have not seen that because it depends on the type of policy you take.

Okay.

Because you know nowadays you can get many people, they have that wrong understanding that if you are going for A bigger sum assured then you have to pay a very high premium. You know the premium for 25 lakhs. If let's say the premium for 25 lakh is 25,000. The premium for 50 lakh would not be 50,000. The premium for 50 Lakh might be around 30,000. So 25 lakh. 25,000. 50 lakh. 30,000. And if you are going for a 1 crore then it might be around 42,000. Why? Why? Because even health insurance companies know that most of the claims they would be within the limit of 3 to 5 lakhs. Most of the claims, okay. 70 to 80% claim would fall in that range of 3 to 5 lakh. So there the premium is high. But the moment you cross the 10 lakh figure the premium, you know, does not reduce increase at the same speed. It will always increase at a lower speed.

So.

Yes. So in fact one couple from Hyderabad, they contacted me. They said right now we do not have more money because we already under debts.

Okay.

But still we need a health insurance cover. Should I go for a 2 lakh rupees? I said what is your budget? And he said 12 to 14,000. I said I will give you in the same amount. I will give you a cover of 50 lakh rupees. Okay. Because the husband, wife, both are working. I said how much is the health insurance in your company is at around three lakh rupees. And wife said five lakh rupees. I said fine. If there is any expense up to 3 lakh rupees you will have to pay from that company's health insurance. Your company's health insurance, anything about that? Up to 50 lakh rupees. My health insurance company will pay you and we will charge you premium of only 12,000 rupees. So you know there are ways out by you which you can reduce the expenses.

Okay.

So I think other questions are in the chat instead of the Q A. What about. Can you also please write about health insurance of parents about 60 years? Yes, you can get health insurance for your parents about 60 years. So there is something called in. In Star Health they have something called red carpet. Even in HDFC they have the plans. So nowadays health insurance companies are giving plans even for senior citizens.

Okay.

And. And the premium is not that high. So for my father I have bought a red carpet plan, a senior citizen plan. So the premium is not much high. Only thing is if you are buying a senior citizen special plan they also know that there are certain expenses very highly possible. So they do not give you the full amount of the claim. So they have a feature called opay, which means 30% they, you will have to pay. So if they approve the claim of five lakh rupees, so 30%, which means 1.5 lakh, you will have to pay 3.5 lakh, they will pay. So, but then they can get the plan. Even the people who already have diabetes, there are special plans for them. People who already have heart issues, there are special plan for them, okay? People who have cancer, for them also there are special plans. And people who do not have cancer, they ideally should buy a cancer cover plan. So I have also bought it a 10 lakh rupees cancer cover plan, you know, which gives you benefit of up to 22 lakh rupees, is available for just 22 rupees per day. So all these plans are available. And in fact, you know, everybody should take it, you know, because whatever I buy for myself and my family, I always strongly promote that thing to others also, because I know that it is important. In fact, when cancer cover plan was launched for the first one and a half year, I did not buy it for myself. So I did not even sell it. But once I realized the importance, then only I bought and then only I.

Sold.

Investments in cryptos and NFTs. So it is, I would say, although people may use a different language, yes, it is a gamble. It is a gamble. People may say that you do not understand. That's why you are calling it a gamble. And the fact is, most of us in India do not understand crypto correctly. What we understand is what we have been only fed by the people who are into that.

Okay?

So you, you should be aware that if you can afford to lose that money without losing your sleep, then go ahead with it.

Okay?

And you, you have, you must have seen one day Elon Musk comes and face, I would go and you know, he does not even say in direct language. He does not talk English. On Twitter, he uses the certain word okay, which are understood by some people. And accordingly, the crypto can go up and go down in one day, it can go down by 30%. So this is what happens with the crypto. So you. And apart from that, Indians are not even trained properly to protect their digital data. Phones are getting hacked, computers are getting hacked. And then we say that, you know, we will store it in the digital format. What is crypto? Can, can anybody trace it? Okay, the traceability and all that thing, you know, is compromised over there. And that's where, you know, it becomes more Riskier for people. How do you rate LIC's policies compared to other companies? I always, you know, whenever it's about risk, I always go for the company which has the least risk, okay. Or which has a backup option. So when it comes to life insurance, I go for lic. My all policies are LIC policies. I do have one plan which is from ICICI which I had taken much before. So in LIC policy the benefit which I get is there's also something called a sovereign guarantee which means if anything happens to lic, if, God forbid, if anything happens to the healthy, the lit company itself, government of India would pay every single rupee. So that's why. So fine. Another question. Life LIC term plans are too expensive. Probably you are not seeing the cost three years back, four years back. So that time also I bought a LIC plan four years back. That time the premium used to be three times of the other companies, okay? But now they have. What they have done is they have differentiated between smokers and non smokers accordingly the premium. Because I'm a non smoker, so the premium is quite less for me. So if you go in the non smoker category, you can get a LIC policy also at a much lower cost. And always if you. If you want to buy a term plan, in case, if you want to buy a term plan, buy it with refund of the premium. Not for the financial decisions, not for the rational or logical decision, okay? Because rational logical would tell you no go for a term plan. But you have to understand that we humans are emotions, okay? We have our emotions. Nowadays they are trying to put the emotions in the machines, okay? What is AI? It's not just intelligence. They are trying to put emotions in that. And on other hand you are being told that when you are into the market, leave your emotions aside. Boss, if it was possible for human being to leave emotions aside, okay? You wouldn't see these Babas in the world. In every country, not just in India, in every country if you see there are Babas who are making thousands of crores, okay? In every country people still worship. So these are all emotions. And the moment you remove the emotions from the people, the entire share market of world would collapse. Because that share market is working on two emotions. Fear and greed.

Okay?

So we have to. If you are buying a term plan, ideally you shouldn't go for a term plan. If you can afford to go for a normal plan or you should go for a combination. But in cape, if you have already have debts on you, you cannot pay much so go for a term plan. But go with the refund of premium. So that at any point of time you should not feel that need. Oh my God. I paid premium for the last 29 years. This is the last year. If I don't die this year, my entire premium would be wasted. God take me this year. So you should not be praying that. So what you should have is a refund of premium. That even if you don't die, at least you get whatever you paid. You get your money back.

Okay.

So bank money investment has many options. But what about the cash money investment options? Two options are there. One is cash can be converted into white. Which I cannot share how in the live session. But yes, it can be converted other is properties. Okay. That is the easiest option. That fine. If you have some cash you can put in property. You. You can make cash expenses. You can also. You know there are a lot of trainings which are very, very useful. And where you know, you can pay in cash also. So if you. The moment you want to look at option there would plenty of options would open up for you. You can pay in cash also. So if you. The moment you want to look at. Okay, very good. While taking life insurance, look at only covering the risk. Don't combine risk and returns. So whenever this thing comes to me, I always say one thing. Now here, this carefully. Do not mix investment with insurance. Correct statement. But the way it is being used. Incorrect.

Okay.

It is being used for some other purpose. It is being used to market something. But here you should understand when I say do not mix investment with insurance. Insurance is not not only for your life. Insurance is not only for your life. In future you should continue getting what you are getting today at least.

Okay.

If. If today you are getting 50000 for your expenses. In future at least you should get 50, 000 or more than that. That amount. That insurance of your income is also to be there. It's not only insurance of life. Insurance of income is equally important. And if you want to see an example, I can share or share on WhatsApp video of Vijay Per Singhania. He was the. You know. His net worth was 12000 crores. 12, 000 crores.

Okay.

Imagine if 1% of that amount. 1%. 120 crores. He would have kept aside for ensuring his income or at least ensuring his expenses. 1% which is 120 crore. You know, even if you he keeps 100 crores. What is the interest on 100 crores in a year? Can somebody please type in the chat.

Window.

Interest on 100 crores in a year. If 6% is the interest. 6%. Yeah, 6%. 6% means how much amount on 100 crores? 6% means 6 crores. So per month, how much money? If one year 6 crore then per month, how much money? 50 lakhs.

50 lakh.

You know what he has done? He has filed a case against his son. Because he says I want 7.5 lakh rupees every month for my household expenses. 7.5 lakh rupees every month I need for my household expenses. Had he kept even 1% of his net worth in some kind of an annuity plan which would have given him guaranteed 50 lakh rupees every month. 1% of his network. So for people who believe that rich people are very smart we have to understand they are smart in their business, not in money management. Money management is a different ball game altogether.

Okay.

And that comes only with the experience. So when I talk to people. So like as I said, this one person had 1.2. There's another person who just I met recently. 1.25 crore in ICICI. FD. 1.25 crore in HDFC. FD. It's not that his only money is FD. He has properties also. If net a total investment was more than 26 crores out of which some amount was in FDS and some amount was in mutual funds.

Okay.

So at some places he was earning 10%. Some places he was earning 2%, 3%. You know, different place. What percentage of your income should be utilized towards your insurance? Very good question. I'll. Let me answer with a simple example. Let's say if you are constructing a bungalow. If you are constructing a bungalow.

Okay.

The first thing you have to build is the foundation. And that is the first thing. And the strongest thing.

Okay.

So first and the strongest has to be foundation. Assuming.

Okay, so.

So I'll share again a real example which was shared by one person with me. When he constructed his bungalow, he had to spend six lakh rupees on the foundation. Total bungalow cost was around 70 lakhs. Out of which 6 lakhs on the foundation. When he started, he had only five lakh rupees. He was going to get his other money later on. He had only 5 lakh rupees. What did he do? Did he put entire 5 lakhs in the foundation or he put 2 lakhs in the foundation, 2 lakhs in constructing the walls and one leg for bringing a sofa and all that interior. What did he do? How did he spend that 5 lakh rupees? If you are in that case, what you would have done if you had only 5 lakh rupees, you are going to get other money later on. But as of now you have got 5 lakh rupees. What would you do? What would you, where would you put that money? Would you put 2 lakh in foundation, 2 lakh in the wall and 1 lakh rupee furniture or would you put the entire file rupees in the foundation? Okay, so understand that. So first thing is foundation. So he put that entire money in that foundation. After that, whatever money he kept getting, he started constructing the walls and the ceiling at the end. Once his bungalow was constructed, then whatever money he got, he spent on the interiors. So even when you have to talk about how much to go for insurance, but you have to plug that hole to whatever if minimum required for that. You have to build that foundation and then whatever money. And that's how the rich people become rich. They become rich faster because after putting their money in the foundation, they still have a lot of money left to grow, to multiply. But the middle class person, what they do is in a rush to become rich faster. They ignore the foundation and they start constructing the wall.

Okay.

And then when there is any market crash and all, then they are on the road. So this is the difference.

Awesome. Thank you Kamal. Guys, can we all give a big, big, big thank you to Kamal and please join a session. Please click on the email link that is given the tiny URL which is given or scan the barcode and do join the session because formatted session so do join the session. And I would also like my Internet moguls team. You know, we have almost about 200 people in the company. I would also maybe like to invite you to come and guide them because I think everybody in the company also. So I think session we will take out for our team and you know, I'm sure they would also be benefited from this.

Sure.

Awesome.

And these sessions for your team, they would be complimentary because you know your team is like, you know, trust me, I do admire you for the kind of work which you have been doing. So for from your team would be like my family only. So that's not about but for corporate. Yes, I do charge them.

Of course, of course. Thank you so much. Really appreciate it. I look forward to seeing you soon. I'm on a Facebook group, Engage Ki Jega. Because everybody would love it if you are also part of that group.

Sure.

I would join it right away.

Awesome. Thank you very much, Kamal.

Thank you. God bless.