Gym Trainer Earning CRORES In His 20s| Fix Your Finance Ep. 64 #personalfinance #fixyourfinance

Summary

In this episode of 'Fix Your Finance', Sagar, a 26-year-old fitness entrepreneur, shares his journey from earning 16,000 in his first month to anticipating an eight-figure income for his startup. Discussing his financial strategies, including a frugal lifestyle, significant investments in direct stocks and PPF, and plans for a home loan, Sagar emphasizes the importance of managing finances wisely and taking calculated risks in business and investments.

Takeaways

• 🏋️‍♂️ Sagar runs a fitness startup that helps men and famous individuals like Ankur Warrior get fit.
• 💰 He aims to cross an 8-figure income for his company and has already achieved a high of 20 lakhs per month in January.
• 📈 Sagar started his fitness coaching career at the age of 20, earning 16,000 in his first month, and has grown his earnings significantly since then.
• 💹 He has invested around 40-50 lakhs in direct stocks, demonstrating a high-risk investment approach without conducting personal research.
• 🤔 Sagar admits to not being adept at financial management and is learning as he goes, relying on a healthy cash reserve for company operations.
• 👥 His team consists of only 4 people, yet they manage to cater to around 100 active clients at a time.
• 💼 Sagar takes a fixed monthly amount of 1.5 to 2 lakhs for personal expenses, which has increased since moving to Mumbai.
• 🏠 He is considering using a credit card to build credit history for future loans, such as a potential home loan.
• 💡 Sagar spends a significant amount on groceries and has recently increased his spending on discretionary items like gifts and clothing.
• 🏦 He maintains a frugal lifestyle and has managed to save and invest a considerable amount of his earnings, with a focus on equity markets and PPF.
• 🏡 When planning to buy a house, Sagar intends to take a home loan, even if he has enough savings, to allocate his funds for potentially higher returns elsewhere.

Q & A

What is the primary service offered by Sagar's fitness startup?

Sagar's fitness startup primarily offers online fitness consultation and coaching to men across the globe, including famous individuals like Ankur Warrior.

How old was Sagar when he started his fitness startup?

Sagar started his fitness startup when he was 20 years old, and he is currently 26.

What was Sagar's initial monthly earning when he first started?

Sagar's first earning at the age of 20 was 16,000 in the first month.

What is the projected income for Sagar's company in the current financial year?

Sagar's company is projected to cross an income of 8 figures, which is over 1 crore Indian Rupees.

What was the highest monthly revenue Sagar's company achieved and in which month?

The highest monthly revenue achieved by Sagar's company was 20 lakhs in January.

How much did Sagar invest in direct stocks and why?

Sagar invested around 40-50 lakhs in direct stocks, mainly because he trusts the recommendations from a YouTuber's community and considers himself a risky person.

What is Sagar's current monthly salary that he takes from his company?

Sagar currently takes out a fixed amount of 1.5 to 2 lakhs per month from his company.

How does Sagar manage his personal finances and investments?

Sagar invests in PPF and the equity market, with 80% of his investment going into stocks and 20% into PPF. He also maintains a minimum of 6-7 months runway for his business and personal emergency fund.

What is Sagar's approach to using a credit card and building credit score?

Sagar has not used a credit card until recently and is considering using one to build his credit score for future loans, such as a home loan.

What advice does Sagar receive regarding his investment strategy in stocks?

Sagar is advised to diversify his investments and not rely solely on the recommendations from a YouTuber without doing his own research. He is also recommended to consider working with an investment advisor or investing in mutual funds for a more balanced approach.

What is Sagar's background and how has it influenced his financial habits?

Sagar comes from a middle-class background, which has made him frugal and inclined to save money automatically. His high income and frugality have contributed to his ability to invest significant amounts at a young age.

Outlines

00:00

🏋️‍♂️ Fitness Startup Success Story

Sagar, a 26-year-old entrepreneur, shares his journey of establishing a fitness startup at the age of 20. Initially earning 16,000 in his first month, he now projects his company's income to exceed 8 figures, with a peak month of 20 lakhs in January. Despite his young age, Sagar has invested 40-50 lakhs in direct stocks, demonstrating his financial acumen and ambition. The conversation highlights the dynamic nature of his business, the importance of cash reserves, and his personal financial habits, including a fixed monthly withdrawal of 1.5 to 2 lakhs.

05:03

💳 Navigating Credit and Investments

In this segment, Sagar discusses his financial considerations, including the decision to use a credit card to build credit history for future loans. He is advised on the responsible use of credit cards to leverage interest-free credit and build a good credit score. The discussion also covers Sagar's personal expenses, such as rent, groceries, and discretionary spending, which total around 60,000 rupees per month. His investment strategy, which includes mutual funds, index funds, and a significant shift towards direct stock investments, is also explored, highlighting the risks and rewards of his approach.

10:04

📈 Risky Financial Strategies and Learnings

Sagar admits to being a risk-taker, particularly in his investment choices. He has liquidated mutual funds to invest heavily in direct stocks, guided by a YouTuber's community without conducting his own research. The conversation delves into the importance of diversification and the potential risks of Sagar's investment strategy. It also touches on his business's financial runway and the necessity of maintaining an emergency fund, both for his business and personal life.

15:05

🏡 Planning for Homeownership and Financial Discipline

As Sagar contemplates purchasing a home, the discussion focuses on the financial planning involved, including the calculation of a suitable down payment and EMI based on his fluctuating entrepreneurial income. The advice given emphasizes the importance of not exceeding a certain percentage of his monthly salary for EMI and maintaining a prudent approach to spending and saving. The summary underscores Sagar's frugality, a trait attributed to his middle-class upbringing, and its impact on his ability to amass a substantial investment portfolio at a young age.

20:07

🤔 Reflecting on Financial Decisions and Future Goals

In the final paragraph, Sagar reflects on his financial journey and the steps he has taken to build a significant portfolio by the age of 26. The conversation provides insights into the balance between his high income and disciplined savings, as well as the influence of his middle-class background on his spending habits. As he looks forward to buying a house, he considers the merits of taking a home loan over using his savings, aiming to allocate his capital to generate higher returns. The segment concludes with general advice on financial planning and the importance of seeking professional guidance in areas outside one's expertise.

Keywords

💡fitness startup

A 'fitness startup' refers to a newly established business venture focused on providing fitness-related services or products. In the context of the video, Sagar runs a fitness startup that helps men get fit and also serves famous clients like Ankur Warrior. The startup is a central theme of the video as it showcases the entrepreneurial journey and financial success in the fitness industry.

💡investment

The term 'investment' in this video pertains to the act of putting money into financial assets, businesses, or property with the expectation of generating income or profit. Sagar mentions investing around 40-50 lakhs in direct stocks, which exemplifies his approach to growing his wealth and indicates his risk appetite.

💡financial growth

Financial growth denotes the increase in wealth or income over time. The video discusses Sagar's company's income growth, aiming to cross 8 figures, and his personal financial journey from earning 16,000 in the first month to having a substantial portfolio, illustrating the concept of financial growth.

💡frugality

Frugality is the quality of being economical with money or resources. Sagar attributes his significant investments and financial success partly to his middle-class background, which instilled in him a sense of frugality, allowing him to save and invest more of his income.

💡credit score

A 'credit score' is a numerical representation of an individual's creditworthiness and is used by lenders to evaluate the risk of lending money. The video touches on the importance of building a good credit score for future loans, like a home loan, by using a credit card responsibly.

💡PPF (Public Provident Fund)

PPF is a long-term investment option offered by the Indian government with attractive interest rates and tax benefits. Sagar mentions investing in PPF as part of his investment strategy, highlighting it as a secure and beneficial investment avenue.

💡equity market

The 'equity market' refers to a broad term encompassing all activities related to buying and selling shares of companies. Sagar discusses investing 80% of his investment funds in the equity market, indicating his preference for potentially higher returns over more conservative investment options.

💡SIP (Systematic Investment Plan)

A SIP is a method of investing in mutual funds with a fixed amount at regular intervals. Sagar mentions that he used to invest in mutual funds through SIPs but has since stopped and shifted to direct stock investments, reflecting a change in his investment strategy.

💡runway

In a business context, 'runway' refers to the amount of time a company can continue its operations based on its current resources. The video discusses having a 6-7 months runway, emphasizing the importance of maintaining sufficient funds to cover business operations during uncertain times.

💡mutual funds

Mutual funds are investment vehicles that pool money from many investors to invest in a diversified portfolio of stocks, bonds, or other assets. Sagar initially invested in mutual funds but later transitioned to direct stock investments, indicating a shift from a less risky to a more risky investment approach.

💡financial advisor

A 'financial advisor' is a professional who provides financial advice or guidance to individuals based on their financial situation and goals. The video suggests that Sagar should consider a financial advisor for his investments, especially given the risks associated with his direct stock investments.

Highlights

Sagar runs a fitness startup that helps men globally and famous personalities like Ankur Warrior get fit.

The company aims to surpass an 8-figure income, with a recent peak of 20 lakhs per month.

Sagar invested 40-50 lakhs in direct stocks, showcasing his young entrepreneurial spirit and risk-taking ability.

Starting at the age of 20, Sagar's first earnings were 16,000 in the first month, highlighting early financial success.

He managed to save and invest despite coming from a middle-class background and being frugal.

Sagar's monthly revenue varies, with January being the highest-grossing month due to new year's fitness resolutions.

The fitness industry's high income potential is evident from Sagar's earnings of 1.3 to 1.4 lakhs per month before quitting his job.

Sagar's team of 4 people efficiently caters to around 100 active clients, demonstrating effective business operations.

He takes a fixed monthly amount of 1.5 to 2 lakhs for personal expenses, a strategy adopted after moving to Mumbai.

Sagar's personal monthly expenses in Mumbai are around 60,000, with additional discretionary spending on gifts and lifestyle.

He has a substantial investment in PPF, amounting to 4.5 lakhs a year, showing a disciplined approach to savings.

Sagar's investment strategy involves a significant portion in equity markets and a smaller portion in PPF, reflecting a balance of risk and safety.

Despite the risk, Sagar relies on a YouTuber's community for stock picks, underlining the influence of social media on investment decisions.

Sagar's business has a 6-7 months runway, ensuring financial stability even during uncertain times.

He emphasizes the importance of an emergency fund, both for personal and business financial health.

Sagar plans to take a home loan despite having savings, to allocate funds for potentially higher returns elsewhere.

The conversation concludes with financial advice on home buying, emphasizing the importance of not exceeding a certain percentage of monthly income for EMI.

Transcripts

I run a fitness startup in which we help men get fit.

We also help famous people like Ankur Warrior.

My first earning when I was 20 was 16,000 in the first

month.

How much will be your company's income?

We will cross 8 figures.

Last month, in January, we touched the highest ever month

which was 20 lakhs per month.

I think I have invested around 40-50 lakhs in direct stokes.

How were you able to invest so much amount at such a young

age?

Hello and welcome to a new episode of Fix Your Finance.

Today we are in Mumbai and I have Sagar with me.

Sagar, welcome to Fix Your Finance.

How are you?

I am very good.

How are you?

I am good.

Sagar, your body is very fit.

First tell us what do you do? I run a fitness startup in

which we help men all across the globe.

We also help famous people like Ankur Warrior.

So Sagar, you provide online fitness consultation to many

people.

Does this startup belong to you?

Yes.

How did you start? What is your age?

I am 26 years old now.

I started when I was 20.

It's been 6 years.

I started as a fitness coach.

I used to coach people online.

I used to teach trainers too.

I was associated with a company till 2020.

I used to work there at a very good Position.

I used to earn decent enough.

I quit in 2021 and started this startup.

And I am doing this now.

When you quit in 2020, what was your income?

When I quit, my income was 1.3 to 1.4 lakhs per month.

Per month?

That means the fitness industry pays you well.

Absolutely.

I had absolutely no idea that the fitness industry pays so

well.

You were 23 years old in 2020.

Earning 1.5 lakhs in 23 years is a very big deal.

Absolutely.

But I didn't start with 1.5 lakhs.

My first earning when I was 20 was 16,000 in the first

month.

Before that, I joined a gym.

I only went for 4 hours.

I made a deal with them that I will get 8,000 per month in

2018.

So, I didn't start with 1.5 lakhs.

As per this financial year, what will be your company's

income?

We will cross 8 figures.

Indian 8 figures.

So, you will cross 1 crore?

Yes. Chances are.

Tell me one thing.

How much was your monthly revenue in April 2023 and how

much is it today?

Just to understand whether this is a month on month growth

or not.

Monthly revenue is very dynamic.

January was the best month.

Because people want to change their fitness Routine.

In April, it must have been around 5-6 lakhs.

And in January, we touched the highest ever month which was

20 lakhs per month.

Which is not the case every month.

Which was the best month.

That was because some of our famous clients posted about us.

That was the reason.

In January, you had 25 lakhs.

In April, you had 5 lakhs.

And you are saying that it won't be the same in February

and March.

It will be less.

So, in such a dynamic situation, how do you manage your

finances?

How do you manage the company's finances?

I am a first time founder.

So, I won't say I am super gun in it.

I won't say.

I am learning in the process.

I will be dead honest with you.

But, what is the plus point in this?

That there are good profits.

So, there is a good cash reserve.

So, I don't have to think so much.

Now, I will be hiring more people in next financial year.

So, they will have to pay a lot of salary.

Then I will have to think about these things.

So, luckily, I don't have to think now.

Because cash is decent enough.

Understood.

How big is your team now?

Now, it is of 4 people.

So, you are saying this.

And how many clients do you have today?

At one time, we have around 100 active clients.

Around 100.

And those 4 people can easily cater to everyone.

Absolutely.

Now, tell me one main thing.

You said that you are a first time founder.

And you don't have to manage so much finances.

Because there is a cash reserve.

So, do you take out a fixed salary or fixed amount every

month?

Or do you take care of the balance?

No, I take out a fixed amount monthly.

Which is around 1.5 to 2 lakhs.

I take out this much.

And since when is that going on?

I have started recently.

Because I shifted to Mumbai 3 months ago.

So, here expenses have increased.

Earlier, when I used to live in my home city, which is

Hisar, Haryana.

Till 3 months ago.

So, there were not so many expenses.

Neither rent nor anything.

My question to you is that I didn't use a credit card till

now.

So, the question is that should I use it?

And I want to use it because maybe I have to take a home

loan.

After 1-2 years.

So, I should build that Sibil first.

Because I do spend.

So, I should use a credit card.

My Sibil will be built.

So, that interest rate will be good.

So, should I do it or not?

I have no idea.

Credit card is a double edged sword.

If you use it well.

If you don't exhaust the entire limit.

If you exhaust only 30% limit.

Till then everything is fine.

Because you are getting interest free credit for 45 days.

You don't have to give any interest.

And along with that, as you use the credit card.

Your credit score will also build.

Because of which when you take loans in future.

Its interest rate will be attractive.

You have to remember only these 3 things before getting a

credit card.

This is a very big mistake.

Whenever people get a credit card.

If you want to use the credit card responsibly.

So, you will get the credit limit.

With which you can build your credit score.

And along with that.

Whatever amount you are investing in FD.

You can earn up to 7% interest on that.

And there is nothing to worry.

Whatever deposits you have.

This is a subsidiary of RBI.

For this credit card.

You have to download the Magnet app.

Open an FD in SBM bank.

And you will get this credit card.

You can start a credit card with a FD of Rs.5000.

So, if you think that no.

If I have a limit of Rs.50,000.

Then I will spend more.

So, in such a case.

You can make your credit card with Rs.5,000-10,000.

And along with that.

You can also build your credit score.

So, you can also check out Magnet.

Link is in the description and pinned comment.

You are saying that your monthly income is Rs.2,00,000.

You draw Rs.2,00,000 from the company.

And from this Rs.2,00,000.

You take out all your expenses.

The first expense you told.

You have shifted from Hisar to Mumbai.

What is the rent of this house?

Do you live alone?

I live with my childhood friend.

Whose job is here in Mumbai.

So, his rent is.

By adding water and electricity bill.

rent is Rs.40,000 per month.

And by adding maid.

It becomes Rs.46,000.

Which you can divide by 2.

Rs.23,000 is in my share.

Which includes rent and help.

After that, your electricity.

And utility bills.

That is also included in it.

Next thing is travel.

Do you have to travel for your work?

I don't have to travel.

But in the past.

I go to the gym.

Or Starbucks.

Or V-Work.

And work.

So, there is a bit of expense for that.

You can say, monthly

It is around Rs.2000.

Max to max.

After that.

Food.

You maintain a proper protein diet.

Vegetarian or non-vegetarian?

Non-vegetarian.

So, you eat chicken, eggs everyday.

So, how much is the expense of grocery?

It will be around Rs.20,000-25,000.

Which was not that much in Hisar.

It is not that much at home.

Here, it is more.

If you go to Starbucks.

It costs Rs.500-600.

Of course.

It is my mistake.

I don't track it.

You don't track it at all.

Do you track your business expenses?

I don't have that much expenses.

So, I don't track it that much.

Teams' salaries.

Yes.

I track those things.

You have an idea of how much you need.

Okay.

Do you have any other expenses?

Like recurring expenses of living in Mumbai.

I go to the gym.

It is the best gym here.

In Powai.

I have paid Rs.45,000 per year.

It is not recurring.

But I have paid Rs.45,000 per year.

Which is around Rs.3,500 per month.

Okay.

Apart from this.

Apart from this,

I have to pay miscellaneous Rs.2,000 for Wi-Fi.

Miscellaneous Rs.2,000.

Okay.

Do you have any responsibilities?

Do you have to send money back home?

Do you send money to your siblings? I used to send money to

my family regularly till 2 years back.

After 2 years, though they are earning, my father and

mother are earning.

So, I reduced sending money.

Because they didn't know how to invest as much as I did.

So, I told them to let me invest.

I told them to manage their expenses.

But if there are big expenses, I pay them for that.

I have to transfer it online.

Like we installed solar in the house.

I think it was Rs.2,50,000-3,00,000.

So, I transferred that.

On an average, how much are you spending on a monthly basis?

In Mumbai,

I think I am spending a minimum of Rs. 60,000.

I am getting better because after coming to Mumbai, I have

started buying more things automatically.

I have bought a watch, bought shoes, bought clothes.

What is the change that you have started spending in Mumbai?

Are you feeling freedom for the first time after being away

from your parents?

What is the reason why you are spending more?

I think so. The city is big, that's why I have started

spending.

Like I told you, when I started earning, I come from a very

humble, middle class background.

Even after earning money, I didn't spend it.

But now I go to one of the best gyms of India, expensive

gyms.

All the rich people come there.

So, automatically, I feel like wearing Adidas shoes.

Since you have come to Mumbai, how much have you spent on

things like watch, shoes, etc?

I think so, I have spent Rs. 50,000.

Because after coming here, I have started giving more gifts

to people.

How did that change?

I don't know why.

I really don't know.

I mean, to my close friends or team, if I am gifting shoes

to someone or if there is a sale on Adidas, so I bought 4

shoes together.

I don't know what happened.

Understood. So, if your fixed expenses are Rs. 60,000, then

your Rs. 20,000-25,000 is now going into gifting.

Yes, it is possible.

Which is again, so after adding all your expenses, even

after counting Rs.

80,000-90,000, you are left with Rs.

60,000-1.1 lakhs every month.

Even after all this, your money is remaining, right? 50% of

your salary is left.

So, what do you do? Do you invest anything?

Yes, I invest regularly. I started investing 3-4 years ago.

Earlier, I used to invest in mutual funds, index funds.

I started by watching creators like you on YouTube.

Then I chose a few mutual funds.

But for the last 1 year, I have stopped all SIPs.

And I am investing in stocks, which is a risky thing.

I don't read it myself. There's one YouTuber. I follow them.

They have a community. So, I see from there and pick stocks.

I invest in long term. At least for 1-2-3 years, minimum.

So, I am doing a little more risky thing.

So, I invest in stocks. I also invest in PPF.

So, mainly 2 things are there.

So, do you invest Rs.

1.5 lakhs in PPF?

Yes, for the last 3-4 years, I have been investing Rs.

1.5 lakhs, 1.5 lakhs, 1.5 lakhs, 1.5 lakhs in my account.

So, I was exhausting the limit of all 3.

I don't feel like doing it now.

But I was doing it till last year.

But why don't you feel like doing it?

It's not because I have invested in it for 3-4 years.

And I feel like I am a risky person.

So, I feel like I can redeem it after 15 years.

But you are investing in the rest also, right?

Yes.

If you are investing Rs.

4.5 lakhs a year in PPF, then how much are you investing in

normal equity markets?

So, out of 100% money I am investing, 80% is in equity

market.

And 20% is in PPF till now.

Okay, so you said that you pick stocks after seeing the

community of a YouTuber.

Can you give me an example of a few companies?

And do you do any research yourself?

To tell you the truth, I told you that I am a risky person.

So, I am relying on their gut because I trust that person.

They make sense to me.

This is a risky thing, I know.

When you buy stocks, it is important to do a little bit of

research.

Because you don't know what are the intentions of that

YouTuber.

Absolutely.

No matter how much you believe, that's why we don't

recommend any stocks, any mutual funds.

Because I feel that more context is important.

Like if I am talking to you and we are talking directly for

2 hours, then we can talk about mutual funds and stocks.

But, by just reading the community post, you are investing

your entire monthly savings in it.

That is wrong.

You are absolutely right.

Maybe it is my nature that I am a little risky person.

So, I am not doing it.

So, do one thing, how much do you invest in stocks every

month?

I did one more risky thing that I liquidated a lot of my

mutual funds and put them in direct stocks.

So, I have invested 40-50 lakhs in direct stocks.

And you?

No, no research, nothing.

Of my own, I am trusting that person's gut.

Okay.

Now, you can see how risky person I am.

That's the thing, right?

You are already taking a lot of risk by betting on

yourself, by betting on the business.

You have fixed expenses, you have fixed responsibilities,

but your income is not fixed.

That's why you are doing business.

Entrepreneurship has the same essence that there is risk

but return is also on the upside.

If you are already taking risk there and here you are

taking calculated risk.

You have studied from the age of 20, you have learned

everything, you have taken experience by working.

Then you are taking risk in entrepreneurship.

So, there is a calculated risk.

But, this risk of putting 50 lakhs without trusting a

single person, I think it is risky.

So, what I would suggest is that if you want to bet in

large cap, don't bet only on individual stocks without

doing any research.

You have to pick a diversified basket.

I have also invested in US stocks.

So, 20% of my equity investing is in US stocks.

Okay.

And you tell me how much money you will have in mutual

funds?

I think so, if you add mutual funds and PPF, it will be 8

figures plus.

Out of that 40-50 lakhs you have invested in equity.

Okay.

If you don't have any knowledge of anything, like I don't

have knowledge of fitness.

So, I came to you and you helped me, we lost weight.

Okay.

Similarly, if you don't have knowledge about the stock

market,

So, either you find an investment advisor who is available

for you, like you were available for me.

Similarly, he should also be available for you.

If you have any doubt, why did you say to invest in HDFC

bank?

Because this community, I know this for a fact, I don't

even know who is a YouTuber.

But I know this for a fact that you can't ask questions to

them.

No.

You can't ask, right?

So, how can you trust such a big chunk of your net worth

only on their communication?

Now I am thinking about this thing.

Right? Every person needs to have competence in one or two

things.

That is known as the circle of competence.

In my case, I am financially educated so I can pick stocks.

I don't have knowledge about fitness so I come to you.

Similarly, if you don't have financial education,

Either you go with an investment advisor that I want to

take risk, I want to buy stocks, you help me.

Or you invest in mutual funds from diversified basket.

Okay.

So, you said you are a risky player, right?

Do you maintain a runway?

If you need 2 lakhs to run a business, do you have a 6-7

months runway?

Yes, there is a minimum of 6-7 months.

Runway means that if your company needs 2 lakhs to run the

business.

If your company's expenses are 2-3 lakhs,

And if your bank has 18 lakhs for this business,

Then it means you have a 6 months runway.

This is similar to the emergency fund of business.

Do you have an emergency fund on a personal level?

Yes.

Okay. And where do you keep it?

Mostly it is in the savings account.

Okay. As long as you are not spending a lot.

Should I keep it in FD?

Yes. Nowadays, every bank offers it as a flexible FD.

In which if you do FD for a year, you will get a 7% return

interest.

7%? Yes, 7% interest.

In a flexible FD, it is not like 5-6% in a year.

No, it is 7%.

And I am not talking about small finance banks.

I am talking about large institutional banks.

Okay.

So, you can put it in this.

And literally, if you have a FD of 1 lakh,

You can withdraw 90,000 rupees.

To maintain that FD of 10,000, you will have to keep 10,000.

But you can withdraw 90,000 rupees.

Okay.

So, you can easily liquidate it? 2 minutes.

2 minutes.

You have a redeem button.

On the mobile app.

That's it.

So, in every big bank, there is this option of Flexible FD.

Okay.

So, your savings, investments, emergency funds, everything.

Tell me one thing.

How were you able to invest so much amount at such a young

age?

Because you have made a 1 crore portfolio at the age of 26.

You have worked hard.

Yes.

What all steps did you take?

Was it just a function of your income?

Or did you do things in different ways?

I think there are two reasons for this.

The first thing is that I had a lot of income.

So, that's obvious.

Because I don't know how to invest so much that I am

trading and making 2x, 3x.

The income was decent enough from the start.

Second thing is, which played in my favor is that I come

from a middle class background.

So, I was automatically frugal.

So, buying a lot of brands or spending a lot of money,

I was not comfortable in the beginning.

So, I used to save money automatically.

Maybe I will buy a home in 1-2 years.

So, how much down payment should I do in that?

And how much EMI should I keep?

For how much time?

So, how will I know this?

Should I rely just on the bank which gives me that

information?

Or should I do my own research?

First of all, your home EMI and home insurance cost should

not exceed 35% of your monthly salary.

Second thing is, your EMI should not exceed 15-20 years.

3rd thing is minimum down payment should be 20%

In your case, since you are an entrepreneur and income

fluctuates constantly

Not 35% but in your case, EMI should not be more than 28-30%

So if you earn 2 lakh rupees, if you want to buy a house

today So first of all you have to see that in the last 12

months, have I been able to withdraw 2 lakh rupees from the

business

If yes, then you can give 30% of it towards EMI which is

60,000 rupees

So these are a few things that you should keep in mind

When I will buy a house, I will take a home loan

In spite of the fact, even if I have savings, enough

savings to buy that house with my cash

Because there are better ways to allocate my money and

generate a higher return

Any other questions?

No Okay, so thank you so much Sagar, that brings us towards

the end of the video

Thank you so much for training me, thank you so much for

talking about your journey with everyone

I wish you all the best

Thank you so much

And if you liked anything in this video, hit the like

button, subscribe

And I will see you guys in the next one