SAVINGS!!!

When you drink beer and waste your

money Think of a POOR CHILD

SPEND WISELY• If you buy things you don't need, you will soon sell things you need. -

Warren Buffett

• All of us suffer from the urge to splurge and we justify our spending

using the pretext of special occasions, peer pressure, lifestyle, family,

emotions and even smart decisions. Most marketing companies

understand this urge and try to exploit it by making offers that give

consumers the false notion of having made the right decision.

Unhealthy carbonated drinks are sold with promises of happiness,

adventure, youthfulness, etc. Take the example of the current EMI

options on expensive smartphones.

• When one could do with a Rs 15,000 phone (within budget), the EMI

option gives a false sense of smart decision and instead makes you

buy a Rs 35,000 phone (overstretched budget). Spending wisely is not

being stingy but being smart and aware. Every rupee spent on

unnecessary urges contributes to lost wealth.

• What you should do: Always ask these

questions: Do I really need this? Am I

overspending? Can I save some money without

compromising on the value I want from a

particular product/service? Encourage your

family members to follow this path.

• Lesson: Rule No. 1 : Never lose money. Rule

No.2: Never forget Rule No.1 - Warren Buffett

SAVE FOR UNEXPECTED

• Someone's sitting in the shade today because someone planted a tree a long time ago. - Warren Buffett

• All of us know that saving is important for a better future. But it is alarming to observe that most of us do not even save enough for emergencies. This happens due to our myopic view about personal finance.

• Instant gratification today matters more than saving for tomorrow. In fact, saving is perceived as sacrifice by people.

• What you should do: Follow "pay yourself first" principle. Set aside money for your future goals (and risk) as soon as you receive your monthly paycheck. Take professional advice to know where and how much you should invest for achieving goals.

• Lesson: Don't save what is left after spending; spend what is left after saving. - Warren Buffett

Think long-term and be patient"No matter how great

the talent or efforts, some things just take time. You can't produce a baby in one month by getting nine women pregnant." -Warren Buffett