Things you must know before entering in your 30s | CA Rachana Ranade
Summary
TLDRIn this insightful video, CA Rachana Ranade discusses five common financial mistakes to avoid in your thirties. She emphasizes the importance of planning as a couple, taking insurance early, and not splurging due to peer pressure or emotional reasons. Rachana also highlights the significance of balancing career aspirations with family life, advocating for a holistic approach to life that includes personal hobbies and 'me time'. The video serves as a guide for those in their thirties and beyond, aiming to prevent financial pitfalls and promote a well-rounded lifestyle.
Takeaways
- š Financial planning is essential at any age, not just for those in their 30s.
- š The importance of planning for the future, including travel and investment goals, is highlighted.
- š« Couples should align their financial goals and work as a team in all aspects of life, including financial planning.
- š The video emphasizes the need for couples to discuss and plan for their children's future and retirement together.
- š A 'homework' assignment for couples in their 30s to write down their aspirations, dreams, and goals is suggested.
- ā³ The significance of taking out insurance early in life is underscored, with examples of how premiums increase with age.
- š° Adequate insurance coverage, ideally five to six times annual income, is recommended for financial security.
- š The distinction between buying a car out of necessity versus for show-off purposes is discussed, with advice on making wise choices.
- šø The dangers of splurging money due to peer pressure or emotional reasons are pointed out as financial mistakes.
- šØāš©āš§āš¦ Spending time with family is crucial and should not be neglected in the pursuit of career and financial success.
- š” The script concludes with the idea that life should be holistic, balancing career, family, and personal time.
Q & A
What is the main theme of the video by CA Rachana Ranade?
-The main theme of the video is to discuss five common mistakes to avoid in one's thirties and the importance of financial planning.
Who should watch the video according to the speaker?
-The video is not only for those in their thirties but also for people in their twenties, those who have passed the age of thirty, and even older individuals to reflect on their past financial decisions.
What is the importance of planning in all aspects of life as mentioned by CA Rachana Ranade?
-Planning is crucial in all walks of life including exams, career, and finances to ensure goals are met and to avoid potential problems that may arise from lack of planning.
Why is it important for couples to plan together according to the video?
-Couples should plan together because they are a team, and working as a team in all aspects of life, including financial planning, helps to align their goals and avoid conflicts.
What homework does CA Rachana Ranade assign to couples in their 30s?
-The homework is for couples to sit down and write down their aspirations, dreams, goals, plans for their children's future, and retirement plans, emphasizing that it should be a joint planning effort.
What is the significance of starting an insurance cover early in life?
-Starting an insurance cover early in life is important because it can significantly reduce the premium amount one has to pay for the same coverage amount as they age.
What is the recommended amount of insurance coverage according to the video?
-The recommended amount of insurance coverage should be five to six times an individual's annual income.
Why did CA Rachana Ranade choose not to own a luxury car?
-CA Rachana Ranade chose not to own a luxury car because she does not feel the need for one given her living situation in Pune, where a scooty is a more practical means of transportation.
What is the difference between spending and splurging according to the script?
-Spending is done within limits, while splurging is done beyond limits. The 50/30/20 rule can help differentiate between the two by allocating a budget for needs, wants, and savings.
What is the 50/30/20 rule mentioned in the video?
-The 50/30/20 rule is a budgeting guideline where 50% of income is allocated for essential expenses, 30% for non-essential expenses or luxuries, and 20% for savings.
Why is it a mistake to splurge money just to keep up with peers?
-Splurging money to keep up with peers is a mistake because it often leads to financial strain and can prevent individuals from investing in assets that truly matter, such as education or retirement.
What is the importance of spending time with family as discussed in the video?
-Spending time with family is important because it contributes to a holistic life experience and prevents individuals from solely focusing on career and financial gains, which can lead to regrets later in life.
What is the Warren Buffet quote mentioned in the video about unnecessary spending?
-The quote is, 'If you buy things that you do not need, soon you will have to sell things that you need,' emphasizing the importance of avoiding unnecessary spending.
Outlines
š Embracing Financial Planning in Your Thirties
The speaker, CA Rachana Ranade, introduces the video's theme of avoiding financial mistakes in one's thirties. She emphasizes that the advice is not exclusive to those in their thirties, but also valuable for younger viewers as a guide for the future and for older viewers as a reflection on past decisions. The importance of unified financial planning within couples is highlighted, with a call to action for couples to align their financial goals and aspirations. The video also touches on the importance of planning in all aspects of life, not just finances.
š The Importance of Timely and Adequate Insurance
This paragraph discusses the significance of obtaining insurance coverage early in life and the financial benefits of doing so, using the example of the varying premiums for a one-crore insurance cover depending on the age of purchase. The speaker also stresses the need for adequate insurance, ideally five to six times one's annual income, and shares her personal experience of increasing her insurance cover after thorough research. Additionally, she introduces Ditto, an insurance platform offering free consultations to help select the most suitable policies.
š° Avoiding Unnecessary Luxury Purchases and Peer Pressure
The speaker addresses the topic of luxury purchases, distinguishing between buying out of necessity and buying for show. She provides examples of when purchasing a car is justified by necessity, such as for health or work reasons, and warns against buying luxury items beyond one's means. The paragraph also covers the dangers of spending due to peer pressure or emotional reasons, and the importance of understanding the difference between spending and splurging. The speaker advises against falling into the trap of unnecessary spending and emphasizes the importance of financial discipline.
šØāš©āš§āš¦ Balancing Career, Finances, and Family Life
In the final paragraph, the speaker emphasizes the importance of balancing career ambitions with family life. She shares her personal efforts to spend time with her family despite her busy schedule and warns against the common mistake of prioritizing work over family during one's thirties. The speaker encourages viewers to lead a holistic life that includes time for personal hobbies and self-care, and not just focus on career and finances. She concludes by inviting viewers to share their thoughts on the video and to explore additional resources on wealth-building and saving.
Mindmap
Keywords
š”Financial Planning
š”New Year Resolution
š”Insurance Cover
š”Adequate Insurance
š”Term Plan
š”50 30 20 Rule
š”Peer Pressure
š”Spending vs. Splurging
š”Dilbert Principle
š”Holistic Life
š”Warren Buffet Quote
Highlights
The importance of financial planning for individuals in their thirties and the relevance for those outside this age group.
The need for couples to align their financial goals and work as a team in all aspects of life, including financial planning.
The assignment given to couples in their thirties to write down their aspirations, dreams, and goals for better financial planning.
The significance of taking insurance cover early in life and the financial benefits of starting insurance at a younger age.
The concept of adequate insurance coverage, ideally five to six times of one's annual income.
The personal experience of increasing insurance cover and the importance of due diligence before subscribing to an insurance policy.
The introduction of Ditto, an insurance platform for reviewing existing policies and selecting the most suitable insurance plans.
The personal choice of transportation based on practicality and avoiding unnecessary luxury spending on cars.
The distinction between buying a car out of necessity and buying one for show-off purposes, and the financial implications of each.
The importance of calculating the risk-return ratio when considering luxury purchases for business or personal satisfaction.
The warning against splurging money due to peer pressure or emotional reasons, which can lead to financial mistakes.
The explanation of the difference between spending money within limits and splurging beyond them, following the 50/30/20 rule.
A quote by Warren Buffet emphasizing the consequences of buying things that are not needed.
The importance of spending time with family and not prioritizing career and earning over personal relationships.
The advice to look at life from a holistic angle, including career, family, and personal time for hobbies and self-care.
Invitation for viewers to share which mistake resonated with them the most and to share the video with friends.
Links provided for viewers interested in learning about ways to get rich and top three ways of saving.
Transcripts
Oh my god! I have become such aĀ pro in financial planning you knowĀ Ā
ah amazing my new year resolutionĀ is perfectly working out
hey hi! uh this Sunday where Imagica?
let me check my calendar yeah yeah just a minute
Hey folks CA Rachana Ranade here and I welcome youĀ all to another interesting video which is aboutĀ Ā
five mistakes to avoid in your thirties butĀ then who should watch this video should itĀ Ā
only be those people who are in their 30s? IĀ feel my answer is no, okay those who are inĀ Ā
your 30s you have, to watch it those who are inĀ your 20s or even below that maybe you can stillĀ Ā
watch it and you can then try and understand thatĀ what is not to be done when you go in your 30sĀ Ā
and those who have already crossed the 30sĀ maybe are in your 40s 50s or 60s or whateverĀ Ā
you can just look back into your life and checkĀ whether you have done these mistakes or notĀ Ā
if you have let me know in the commentĀ section so that I can go through them.
Look at Mrs. Ranade what plansĀ does she have for this yearĀ Ā
um investing in shares um investing in PPFĀ uh how much in FDs um okay this much in bondsĀ Ā
I think that should be sufficient andĀ now have a look at Mr. Ranade travel,Ā Ā
travel to Switzerland US UK oh my god that'sĀ like shopping and traveling around the world.
So I believe that planning is required in allĀ walks of life be it planning related to yourĀ Ā
exams or planning related to a career or planningĀ of your finances, remember what happened in theĀ Ā
previous section of the video well Mrs RanadeĀ had her own goals and Mr Ranade had his own goalsĀ Ā
so what was the big problem? problemĀ was that both were on different pages,Ā Ā
in fact I have seen many friends of mine who areĀ couples and they have their own thought processĀ Ā
they have their own set of financial planningĀ now the problem is that if you are a teamĀ Ā
then ideally you should work as a team not onlyĀ in specific aspects of life but in all aspects ofĀ Ā
life including financial planning, so what is theĀ solution? solution I am giving you homework allĀ Ā
the couples in your 30s I am giving you homework,Ā today sit down and write down what are yourĀ Ā
aspirations? what are your dreams? what are yourĀ goals? and if you have kids what have you thoughtĀ Ā
about their future? right, what are your plans forĀ retirement? it should not be individual planningĀ Ā
it should be a couple planning, so always rememberĀ that failing to plan is equal to planning to fail,Ā Ā
so don't forget to do your homework and let meĀ know in the comment section when you finish yourĀ Ā
homework. I am sure that when you heard this thingĀ of you know sitting together to plan your financesĀ Ā
you might be like she this is so awkward youĀ know sitting down and planning your financesĀ Ā
but I have given you homework now so do you haveĀ any choice no you have to do it and there is oneĀ Ā
more thing which people feel that is very awkwardĀ what see see look at this you watch my videos butĀ Ā
you don't subscribe to it so what is the problemĀ just click that subscribe button it's free.
get set go
Like starting the race on time was importantĀ similarly starting your race of life on timeĀ Ā
is also equally important so I am talking aboutĀ taking an insurance cover early in your life,Ā Ā
do you know there is a big difference that canĀ be created just by starting on time let me giveĀ Ā
you an example, if you want to take an insuranceĀ cover of one crore at the age of 21 versus at theĀ Ā
age of 31 versus at the age of 41. cover is sameĀ one crore only but have a look at the amount ofĀ Ā
premium that you will have to shell out if youĀ start late if you start early at the age of 21Ā Ā
then your premium is going to be 833 rupeesĀ only for an amount of one crore rupees cover,Ā Ā
if you start at 31 then your amount is going to beĀ 1250 and your premium amount will jump up to 1833Ā Ā
if you start at the age of 41. I hope youĀ have understood the importance of takingĀ Ā
an insurance cover on time but is that the onlyĀ important aspect no taking an adequate insuranceĀ Ā
is also equally important. Now how much couldĀ be an adequate insurance ideally it should beĀ Ā
five to six times of your annual income, nowĀ recently I increased my insurance cover I tookĀ Ā
out another insurance policy which was a termĀ plan and of course I did my due diligence uh IĀ Ā
looked out at all the different aspects of theĀ insurance policy and then I subscribed to theĀ Ā
that insurance policy but you know there areĀ many people who just subscribe to any insuranceĀ Ā
policy just because their agent tells them thatĀ that is the best policy for them and then manyĀ Ā
times they regret because they then understandĀ oops that was not a relevant policy for me. ItĀ Ā
will be amazing if someone actually tells you allĀ the positives and negatives of your policy rightĀ Ā
and exactly that's what I love about Ditto, DittoĀ is an insurance platform backed by Zeroda and youĀ Ā
know to get a feel of the free consultation IĀ myself booked a slot with them and even I gotĀ Ā
to know a few finer aspects about my own insuranceĀ policy like death due to adventure games is alsoĀ Ā
covered in my own policy so not only do theyĀ review your existing policies but they alsoĀ Ā
offer you free consultation to help you to selectĀ the most suitable health insurance as well as theĀ Ā
life insurance policy, I think this is whatĀ makes them stand out in the entire crowd so toĀ Ā
book your own free consultation call, You can justĀ check out the link in the description box below.
yes
You might be like what Rachana, you finally wentĀ out on a scooty pep okay to be really honest IĀ Ā
really don't own a Mercedes I don't own an AudiĀ I even don't have a Jaguar right so uh the reasonĀ Ā
is pretty simple I am not crazy about cars it'sĀ not about can I afford these cars or not okayĀ Ā
it's just that I don't feel that's my requirementĀ right now okay, where I stay in Pune and where myĀ Ā
office is there in Pune it's very crowded soĀ even if I were to buy an Audi or a Jaguar IĀ Ā
think rather than enjoying the pleasure of sittingĀ in that car and driving that car I would be like
I will be more you know panicked about theĀ situation on the roads so I don't want that,Ā Ā
that's why I feel that the place whereĀ I stay and office scooty is the bestĀ Ā
means of transport for me right. Now if I talkĀ about others who all really buy cars thereĀ Ā
could be two reasons why they are buying carsĀ right possibility number one is their need andĀ Ā
possibility number two could be kind of a show-offĀ okay we're coming to both these points. First oneĀ Ā
it's a need assume that there's a person who isĀ working and his workplace is almost like 15-20Ā Ā
kilometers away from his place of residence thereĀ is no bus facility that person has some backacheĀ Ā
then he might say that just for my health alsoĀ and my mental well-being I need to have a car.Ā Ā
Is that a financial crime no that's a necessityĀ I can say, maybe that person has old parents atĀ Ā
home and they need just in case if you know thereĀ is some medical emergency he wants that even atĀ Ā
midnight I should be able to safely carryĀ them wherever to a clinic or to a hospitalĀ Ā
and again I will say that will be a need of thatĀ person. Now please understand his scenario assumeĀ Ā
that his salary is 50,000 and he says it's myĀ need I need to buy an Audi that is wrong thatĀ Ā
person should buy a car but it should beĀ within his budget okay if he's buying carsĀ Ā
which with a heavy EMI that person will be losingĀ out on unnecessary assets he will not be left withĀ Ā
a lot of money to save in real assets to investĀ in real assets right so I hope you have understoodĀ Ā
the difference when there is a need for a car butĀ which car is to be chosen makes a big difference.Ā Ā
Second one can be kind of a show off but againĀ I am saying show off don't take it in a negativeĀ Ā
sense each and every time okay possibilityĀ number one, that person is in a businessĀ Ā
wherein you know it does matter what kind ofĀ dressing you do, what kind of cars you you travelĀ Ā
in okay so if that person is in that businessĀ I know this is not correct that you should notĀ Ā
be judging a person by what he wears how does heĀ travel but unfortunately that is the truth so thatĀ Ā
person should analyze for himself that just if IĀ carry a Macbook, I go in an Audi and I wear allĀ Ā
the branded clothes and if I were to go to closeĀ a deal if I am able to do that how much moneyĀ Ā
will I get versus how much I am spending on theseĀ luxurious assets right it's a proper risk returnĀ Ā
ratio that you have to calculate what is the riskĀ what is my return which is possible right, so thisĀ Ā
show off sometimes I believe is doable right,Ā second show off a person might say I genuinelyĀ Ā
love cars buying a Hyundai car or buying a HondaĀ car or buying an Audi whatever that is my dreamĀ Ā
and assume that a person has actually veryĀ systematically saved 30 percent of his earningĀ Ā
if you remember 50 30 20 rule 30 goes for luxuryĀ he has saved 30 percent for three straight yearsĀ Ā
and he said that yes that's my dream and thenĀ after three years after doing a lot of sacrificesĀ Ā
this person buys this car I thinkĀ it is an achievement for him okay,Ā Ā
so how have you planned it like you remember inĀ the pre-bumper did he take out that money fromĀ Ā
his saving and utilize it in the car that wouldĀ have been wrong but if he had kept that in hisĀ Ā
proper luxury asset buying fund and then boughtĀ it that would have been correct right. FinallyĀ Ā
what is the wrong show off just to drive a carĀ when that person is not in a need, when he reallyĀ Ā
doesn't you know uh have that much salary butĀ he just wants to show off by singing Lamborghini
oh
huh
You know you also might be having such rotluĀ category friends that every time they'll keepĀ Ā
on comparing, no I only have iPhone five or sixĀ my friend has iPhone 13 I am shopping at ToshibaĀ Ā
my friend is shopping in Dubai, I am going onlyĀ to murshid my friend is going to Switzerland,Ā Ā
such rotlu category friends what they do justĀ keep on comparing okay and they tend to splurgeĀ Ā
money just to keep up for the peersĀ just to because of the peer pressureĀ Ā
they'll be splurging money is that a bigĀ money mistake answer is obviously yes,Ā Ā
before we move on to what is the mistake IĀ would like to clarify what is the differenceĀ Ā
between spending money and splurging money.Ā Generally ideally spending is done within limitsĀ Ā
and splurging is done beyond limits inĀ Marathi we have a classic equivalentĀ
should you be spending money should you beĀ splurging money just because of peer pressureĀ Ā
no that is a big money mistake that you can do,Ā I think this money mistake has got nothing to doĀ Ā
with your 30s it can very well happen in all agesĀ right, second why would you tend to splurge moneyĀ Ā
it could be because of emotional reasons as well,Ā there are many many girls I know they'll they'llĀ Ā
say that I am feeling very low today I will shopĀ and I will feel better okay that can be one reasonĀ Ā
why this plus, again bad thing to do right, inĀ fact I have talked about this and what could beĀ Ā
a solution for this in my top three savings videoĀ whenever time permits do watch this video as wellĀ Ā
right. Third thing why would people splurgeĀ money because they get tempted because of theĀ Ā
existing offers like we have a personal loan forĀ you we have excess credit points for you, we haveĀ Ā
shopping coupons for you it is a great shoppingĀ festival, all these things are just to lure you inĀ Ā
for the shopping experience for you to spend moreĀ and more. Okay so one basic thing is shopping bad,Ā Ā
is spending bad nope it is not bad at all ifĀ and only if you are following the 50 30 20 rule,Ā Ā
if you are still not really aware about what is 50Ā 30 20 rule again you can go and check this videoĀ Ā
of mine so if you're spending within limits withinĀ your 30 and 20 uh limits then that is absolutelyĀ Ā
fine. So I would just like to end up this sectionĀ by stating a Warren Buffet quote which mentionsĀ Ā
that ''if you buy things that you do not needĀ soon you will have to sell things that you need''
Remember what Marlon Brando said in the filmĀ godfather ''because a man who doesn't spend timeĀ Ā
with his family can never be a real man'' ,I amĀ sure you might be like Rachana what happened youĀ Ā
were talking about money traps and all of a suddenĀ you have been talking about this family thing whatĀ Ā
happened? you know this is exactly the mistakeĀ that many people make in their 30s they believeĀ Ā
that 30s is the time to work hard 30s is theĀ time to make their career 30s is the time to makeĀ Ā
money and if time permits then spending timeĀ with your family is what comes at the end or as aĀ Ā
secondary thing. don't you think that I am workingĀ hard don't you think I am earning money don't youĀ Ā
think I am making a career but still at least IĀ am trying my best to spend time with my child,Ā Ā
to spend time with my husband, to spendĀ time with my family and with my friendsĀ Ā
so I believe that life should be looked atĀ from a wholistic angle and not only from oneĀ Ā
angle of earning money you know you mightĀ come across many mothers who will say thatĀ Ā
when they are in their 50s or when they are inĀ their 60s they would always say this that was
I never understood when my child grew up andĀ I don't want to say that, that is the onlyĀ Ā
reason why I make it a point that I do spendĀ some time with my family members as well,Ā Ā
it's said very beautifully that ''too muchĀ of anything is nothing'' so don't concentrateĀ Ā
only on your career as I mentioned try to makeĀ it a wholistic life don't only spend time withĀ Ā
your family members spend time with yourself,Ā as well so I think the me time as a concept isĀ Ā
very important develop a hobby for yourselfĀ as well because 30s is the start of yourĀ Ā
true career your true life let that notĀ be the only focus point in your life
Well let me know in the comment sectionĀ which mistake did you resonate withĀ Ā
the most and if you found some value in thisĀ video don't forget to share it with your friends,Ā Ā
if you also want to know what could be the wayĀ to get rich you can click here and if you wantĀ Ā
to know top three ways of saving you can clickĀ here till then take care, Jai Hind and bye bye.
Browse More Related Video
Must Do Things in your 20s to Become Successful
What is Fibonacci Retracement? How to use Fibonacci Retracement in Trading? Explained By CA Rachana
How To Retire A Millionaire
Every Type of Wealth (Explained)
å¦ä½éøęę佳大åøäø»äæ® | KOACH ååøåéč¦å | å½±éæ大åøå°ę„éøęå ē“ | åéč¦å ęŖä¾é”ęÆ | Choosing the Best College Major
Manifesting Love? A Relationship? What You Should Know...
5.0 / 5 (0 votes)