Things you must know before entering in your 30s | CA Rachana Ranade

Summary

In 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

• 😀 Financial planning is essential at any age, not just for those in their 30s.
• 📅 The importance of planning for the future, including travel and investment goals, is highlighted.
• 👫 Couples should align their financial goals and work as a team in all aspects of life, including financial planning.
• 🏠 The video emphasizes the need for couples to discuss and plan for their children's future and retirement together.
• 📝 A 'homework' assignment for couples in their 30s to write down their aspirations, dreams, and goals is suggested.
• ⏳ The significance of taking out insurance early in life is underscored, with examples of how premiums increase with age.
• 💰 Adequate insurance coverage, ideally five to six times annual income, is recommended for financial security.
• 🚗 The distinction between buying a car out of necessity versus for show-off purposes is discussed, with advice on making wise choices.
• 💸 The dangers of splurging money due to peer pressure or emotional reasons are pointed out as financial mistakes.
• 👨‍👩‍👧‍👦 Spending time with family is crucial and should not be neglected in the pursuit of career and financial success.
• 💡 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

00:00

😀 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.

05:01

🚗 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.

10:02

💰 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.

15:06

👨‍👩‍👧‍👦 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.

Keywords

💡Financial Planning

Financial planning is the process of managing one's finances to achieve specific goals. In the video, it is the central theme, emphasizing the importance of setting financial goals and making strategic decisions in one's thirties to ensure a secure future. The script mentions Mrs. Ranade's plans for investing in shares, PPF, FDs, and bonds, illustrating the concept of diversified financial planning.

💡New Year Resolution

A New Year resolution refers to a tradition in which a person resolves to continue good practices, change an undesired trait or behavior, or accomplish a personal goal at the beginning of a new year. In the script, the speaker expresses excitement about their New Year resolution being effective, which is related to becoming proficient in financial planning.

💡Insurance Cover

Insurance cover is a policy taken out to protect against certain perils, typically involving the payment of premiums. The video discusses the significance of obtaining insurance early in life, highlighting the cost benefits of starting insurance at a younger age, such as lower premiums for a one-crore cover if started at 21 versus at 31 or 41.

💡Adequate Insurance

Adequate insurance refers to having an insurance policy that sufficiently covers one's needs and risks. The video suggests that an ideal insurance cover should be five to six times an individual's annual income, stressing the importance of not only having insurance but also ensuring it is adequate for one's financial protection.

💡Term Plan

A term plan is a type of life insurance policy that provides coverage for a specified term or period. The video mentions the speaker's decision to take out an additional term plan after careful consideration, indicating the process of due diligence in selecting an insurance policy that meets personal needs.

💡50 30 20 Rule

The 50 30 20 rule is a budgeting guideline where 50% of income is allocated for essential expenses, 30% for non-essential or luxury expenses, and 20% for savings. The script uses this rule to discuss proper financial management, emphasizing the importance of balancing spending, saving, and investing.

💡Peer Pressure

Peer pressure is the influence exerted by a person's peers on the individual to act in ways that the individual might not prefer. In the video, peer pressure is cited as a reason why some individuals may make poor financial decisions, such as splurging on unnecessary luxuries to keep up with others.

💡Spending vs. Splurging

Spending refers to the act of using money to purchase goods or services, while splurging implies excessive spending beyond one's budget or needs. The video differentiates between the two, cautioning against splurging due to peer pressure or emotional reasons, and advocating for spending within the limits set by the 50 30 20 rule.

💡Dilbert Principle

The Dilbert Principle is a concept from the comic strip 'Dilbert' suggesting that the least competent employees are often given the least important tasks. Although not explicitly mentioned in the script, the concept of avoiding certain mistakes in one's thirties to ensure career progression could be related to the idea of not falling into the 'Dilbert Principle' trap.

💡Holistic Life

A holistic life approach involves considering all aspects of one's well-being, including career, family, personal interests, and health. The video emphasizes the importance of not focusing solely on career and finances but also nurturing relationships and personal growth, as exemplified by the speaker's efforts to spend time with family and develop hobbies.

💡Warren Buffet Quote

The quote by Warren Buffet, 'if you buy things that you do not need, soon you will have to sell things that you need,' is used in the video to caution against unnecessary spending and to advocate for living within one's means. It serves as a reminder of the potential consequences of poor financial decisions.

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 a  pro in financial planning you know  

ah amazing my new year resolution  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 you  all to another interesting video which is about  

five mistakes to avoid in your thirties but  then who should watch this video should it  

only be those people who are in their 30s? I  feel my answer is no, okay those who are in  

your 30s you have, to watch it those who are in  your 20s or even below that maybe you can still  

watch it and you can then try and understand that  what is not to be done when you go in your 30s  

and those who have already crossed the 30s  maybe are in your 40s 50s or 60s or whatever  

you can just look back into your life and check  whether you have done these mistakes or not  

if you have let me know in the comment  section so that I can go through them.

Look at Mrs. Ranade what plans  does she have for this year  

um investing in shares um investing in PPF  uh how much in FDs um okay this much in bonds  

I think that should be sufficient and  now have a look at Mr. Ranade travel,  

travel to Switzerland US UK oh my god that's  like shopping and traveling around the world.

So I believe that planning is required in all  walks of life be it planning related to your  

exams or planning related to a career or planning  of your finances, remember what happened in the  

previous section of the video well Mrs Ranade  had her own goals and Mr Ranade had his own goals  

so what was the big problem? problem  was that both were on different pages,  

in fact I have seen many friends of mine who are  couples and they have their own thought process  

they have their own set of financial planning  now the problem is that if you are a team  

then ideally you should work as a team not only  in specific aspects of life but in all aspects of  

life including financial planning, so what is the  solution? solution I am giving you homework all  

the couples in your 30s I am giving you homework,  today sit down and write down what are your  

aspirations? what are your dreams? what are your  goals? and if you have kids what have you thought  

about their future? right, what are your plans for  retirement? it should not be individual planning  

it should be a couple planning, so always remember  that failing to plan is equal to planning to fail,  

so don't forget to do your homework and let me  know in the comment section when you finish your  

homework. I am sure that when you heard this thing  of you know sitting together to plan your finances  

you might be like she this is so awkward you  know sitting down and planning your finances  

but I have given you homework now so do you have  any choice no you have to do it and there is one  

more thing which people feel that is very awkward  what see see look at this you watch my videos but  

you don't subscribe to it so what is the problem  just click that subscribe button it's free.

get set go

Like starting the race on time was important  similarly starting your race of life on time  

is also equally important so I am talking about  taking an insurance cover early in your life,  

do you know there is a big difference that can  be created just by starting on time let me give  

you an example, if you want to take an insurance  cover of one crore at the age of 21 versus at the  

age of 31 versus at the age of 41. cover is same  one crore only but have a look at the amount of  

premium that you will have to shell out if you  start late if you start early at the age of 21  

then your premium is going to be 833 rupees  only for an amount of one crore rupees cover,  

if you start at 31 then your amount is going to be  1250 and your premium amount will jump up to 1833  

if you start at the age of 41. I hope you  have understood the importance of taking  

an insurance cover on time but is that the only  important aspect no taking an adequate insurance  

is also equally important. Now how much could  be an adequate insurance ideally it should be  

five to six times of your annual income, now  recently I increased my insurance cover I took  

out another insurance policy which was a term  plan and of course I did my due diligence uh I  

looked out at all the different aspects of the  insurance policy and then I subscribed to the  

that insurance policy but you know there are  many people who just subscribe to any insurance  

policy just because their agent tells them that  that is the best policy for them and then many  

times they regret because they then understand  oops that was not a relevant policy for me. It  

will be amazing if someone actually tells you all  the positives and negatives of your policy right  

and exactly that's what I love about Ditto, Ditto  is an insurance platform backed by Zeroda and you  

know to get a feel of the free consultation I  myself booked a slot with them and even I got  

to know a few finer aspects about my own insurance  policy like death due to adventure games is also  

covered in my own policy so not only do they  review your existing policies but they also  

offer you free consultation to help you to select  the most suitable health insurance as well as the  

life insurance policy, I think this is what  makes them stand out in the entire crowd so to  

book your own free consultation call, You can just  check out the link in the description box below.

yes

You might be like what Rachana, you finally went  out on a scooty pep okay to be really honest I  

really don't own a Mercedes I don't own an Audi  I even don't have a Jaguar right so uh the reason  

is pretty simple I am not crazy about cars it's  not about can I afford these cars or not okay  

it's just that I don't feel that's my requirement  right now okay, where I stay in Pune and where my  

office is there in Pune it's very crowded so  even if I were to buy an Audi or a Jaguar I  

think rather than enjoying the pleasure of sitting  in that car and driving that car I would be like

I will be more you know panicked about the  situation on the roads so I don't want that,  

that's why I feel that the place where  I stay and office scooty is the best  

means of transport for me right. Now if I talk  about others who all really buy cars there  

could be two reasons why they are buying cars  right possibility number one is their need and  

possibility number two could be kind of a show-off  okay we're coming to both these points. First one  

it's a need assume that there's a person who is  working and his workplace is almost like 15-20  

kilometers away from his place of residence there  is no bus facility that person has some backache  

then he might say that just for my health also  and my mental well-being I need to have a car.  

Is that a financial crime no that's a necessity  I can say, maybe that person has old parents at  

home and they need just in case if you know there  is some medical emergency he wants that even at  

midnight I should be able to safely carry  them wherever to a clinic or to a hospital  

and again I will say that will be a need of that  person. Now please understand his scenario assume  

that his salary is 50,000 and he says it's my  need I need to buy an Audi that is wrong that  

person should buy a car but it should be  within his budget okay if he's buying cars  

which with a heavy EMI that person will be losing  out on unnecessary assets he will not be left with  

a lot of money to save in real assets to invest  in real assets right so I hope you have understood  

the difference when there is a need for a car but  which car is to be chosen makes a big difference.  

Second one can be kind of a show off but again  I am saying show off don't take it in a negative  

sense each and every time okay possibility  number one, that person is in a business  

wherein you know it does matter what kind of  dressing you do, what kind of cars you you travel  

in okay so if that person is in that business  I know this is not correct that you should not  

be judging a person by what he wears how does he  travel but unfortunately that is the truth so that  

person should analyze for himself that just if I  carry a Macbook, I go in an Audi and I wear all  

the branded clothes and if I were to go to close  a deal if I am able to do that how much money  

will I get versus how much I am spending on these  luxurious assets right it's a proper risk return  

ratio that you have to calculate what is the risk  what is my return which is possible right, so this  

show off sometimes I believe is doable right,  second show off a person might say I genuinely  

love cars buying a Hyundai car or buying a Honda  car or buying an Audi whatever that is my dream  

and assume that a person has actually very  systematically saved 30 percent of his earning  

if you remember 50 30 20 rule 30 goes for luxury  he has saved 30 percent for three straight years  

and he said that yes that's my dream and then  after three years after doing a lot of sacrifices  

this person buys this car I think  it is an achievement for him okay,  

so how have you planned it like you remember in  the pre-bumper did he take out that money from  

his saving and utilize it in the car that would  have been wrong but if he had kept that in his  

proper luxury asset buying fund and then bought  it that would have been correct right. Finally  

what is the wrong show off just to drive a car  when that person is not in a need, when he really  

doesn't you know uh have that much salary but  he just wants to show off by singing Lamborghini

oh

huh

You know you also might be having such rotlu  category friends that every time they'll keep  

on comparing, no I only have iPhone five or six  my friend has iPhone 13 I am shopping at Toshiba  

my friend is shopping in Dubai, I am going only  to murshid my friend is going to Switzerland,  

such rotlu category friends what they do just  keep on comparing okay and they tend to splurge  

money just to keep up for the peers  just to because of the peer pressure  

they'll be splurging money is that a big  money mistake answer is obviously yes,  

before we move on to what is the mistake I  would like to clarify what is the difference  

between spending money and splurging money.  Generally ideally spending is done within limits  

and splurging is done beyond limits in  Marathi we have a classic equivalent 

should you be spending money should you be  splurging money just because of peer pressure  

no that is a big money mistake that you can do,  I think this money mistake has got nothing to do  

with your 30s it can very well happen in all ages  right, second why would you tend to splurge money  

it could be because of emotional reasons as well,  there are many many girls I know they'll they'll  

say that I am feeling very low today I will shop  and I will feel better okay that can be one reason  

why this plus, again bad thing to do right, in  fact I have talked about this and what could be  

a solution for this in my top three savings video  whenever time permits do watch this video as well  

right. Third thing why would people splurge  money because they get tempted because of the  

existing offers like we have a personal loan for  you we have excess credit points for you, we have  

shopping coupons for you it is a great shopping  festival, all these things are just to lure you in  

for the shopping experience for you to spend more  and more. Okay so one basic thing is shopping bad,  

is spending bad nope it is not bad at all if  and only if you are following the 50 30 20 rule,  

if you are still not really aware about what is 50  30 20 rule again you can go and check this video  

of mine so if you're spending within limits within  your 30 and 20 uh limits then that is absolutely  

fine. So I would just like to end up this section  by stating a Warren Buffet quote which mentions  

that ''if you buy things that you do not need  soon you will have to sell things that you need''

Remember what Marlon Brando said in the film  godfather ''because a man who doesn't spend time  

with his family can never be a real man'' ,I am  sure you might be like Rachana what happened you  

were talking about money traps and all of a sudden  you have been talking about this family thing what  

happened? you know this is exactly the mistake  that many people make in their 30s they believe  

that 30s is the time to work hard 30s is the  time to make their career 30s is the time to make  

money and if time permits then spending time  with your family is what comes at the end or as a  

secondary thing. don't you think that I am working  hard don't you think I am earning money don't you  

think I am making a career but still at least I  am trying my best to spend time with my child,  

to spend time with my husband, to spend  time with my family and with my friends  

so I believe that life should be looked at  from a wholistic angle and not only from one  

angle of earning money you know you might  come across many mothers who will say that  

when they are in their 50s or when they are in  their 60s they would always say this that was

I never understood when my child grew up and  I don't want to say that, that is the only  

reason why I make it a point that I do spend  some time with my family members as well,  

it's said very beautifully that ''too much  of anything is nothing'' so don't concentrate  

only on your career as I mentioned try to make  it a wholistic life don't only spend time with  

your family members spend time with yourself,  as well so I think the me time as a concept is  

very important develop a hobby for yourself  as well because 30s is the start of your  

true career your true life let that not  be the only focus point in your life

Well let me know in the comment section  which mistake did you resonate with  

the most and if you found some value in this  video don't forget to share it with your friends,  

if you also want to know what could be the way  to get rich you can click here and if you want  

to know top three ways of saving you can click  here till then take care, Jai Hind and bye bye.