This series ‘Investor Stories’ is an initiative to share the learnings and experiences of investors to help all other investors, especially millennials and investing beginners. Here is our first story from a real life investor –Shwetha Kiran

Money speaks only one language-  ‘If you save me today, I will save you tomorrow’.

Yes, Money is not just a piece of paper! As the saying goes, an empty pocket and a hungry stomach teaches millions of things in life. Even this Covid-19 lockdown is teaching us great lessons about life, relationship and of course the importance of saving money for hard times.

I doubt there is anyone who could say lockdown didn’t affect his life in any way. It has taken out many lives, food, job, aspirations and dreams. Therefore, one should seriously need to revisit their health condition, lifestyle and mainly personal finance. I wonder, if just one month of lockdown made us weak financially, then for what and why did we work hard all these years, sacrificing health, happiness, family? Well, question yourself!!!

The very first thing which came into my mind is, what if I get affected by covid-19, What if I die? 

Well, am bit relieved because my basics are covered –

• I have sufficient Term Insurance to protect my dependents financially in my absence 
• Health Insurance by my employer in addition by self too and 
• I have an emergency fund equivalent to six months expenses.

We, as a family, follow the basic saving mantras which made us comfortable even in this lockdown. Since our marriage, we were very strict about our finances and maintained a diary to track our expenses. We follow a rule – not to spend money before earning it. Subsequently, helping us not to fall prey to any unnecessary debt.

Now, let me share what major changes happened in my daily routine: –

1. Due to lockdown, our maid could not come, thus I had to do all the household chores by myself. It was quite unmanageable in the beginning but after a few days it made me realize that I can do some chores by myself and need not be dependent on anyone. This helped me in saving almost 2000/ rupees.
2. We used to spend quite a good sum every month towards paneer/cheese, dry snacks and a few other items which are generally liked by kids. Due to lockdown, we did not get them as the supply was interrupted. This time I decided to give a try to make some snacks and paneer at home. With the help of the internet, I am able to make fresh and healthier versions of many such items without any preservatives at home. The happiest thing is it’s free from chemicals and preservatives. Thus, I ended up in saving around 2000/- rupees again. All these things made me realize If I can cut down my sleep time or entertainment time by 1-2 hours a day, I can save money but also keep my family healthy. Health is wealth, what else is needed when wealth comes along with health!
3. I have seen many of my friends spending lavishly in the name of weekend hangouts! They just roam around malls, multiplexes and end up in purchasing things which are not needed. I noticed that if one can cut down at least one week from such weekend parties, he/she can easily cover his/her term insurance yearly premium. 

Let’s take an example:

A couple, Sachin and Seema are working as Software Engineers. Sachin is 30-year-old and Seema 25-year-old and they have a 2-year-old kid. Suppose, they are spending 1,000 rupees every week in the name of weekend shopping/hangout/eat out then they may end up in spending around Rs.52000/-  a year. 

Now, Sachin and Seema, each could get Term Insurance cover of one crore each with annual premiums of Rs.12,000 /-and Rs.8,000 /-  respectively. Additionally, they can get Family Floater Health Insurance with coverage of 5 Lakhs for annual premium of around Rs.12000/-. Still they will be left with Rs.20,000/- for weekend hangouts. They can easily cover term insurance premium and family health insurance premium along with saving income tax for both. What else is needed when you can cover your basics so wisely!

Hard times make us realize the importance of saving. Even birds save food for the monsoon season. We humans, who claim as one of the intelligent creations of God, don’t bother to save and invest for the future. It’s better to alter spending habits now rather than begging in future. Let’s not be a burden to our children in future.

Plan for retirement wisely, that you need not depend on anyone in your old age and can lead a respectable and peaceful retirement life. Believe in simple living, high thinking. You may forget this bad time and effect of covid-19 lockdown but should never forget the lessons it taught! The race to financial goal is often won by investments rather than earnings. 

Stay invested! Happy Investing!

Shwetha Kiran R