dear viewers welcome to this episode of your life your money this is a dedicated video for people in the age band of 35 to 45 years this is an age band where you take your life to the next stage but it also calls for focusing on few things to take that life to the next level in this video I'm going to talk to you about 10 must things on which you must focus on to create that success in your financial life each and every one of these points are as important as the first one do
not skip this video watch till the end and create that success in your financial life this is NRA Mone clinic for you and I Dr chra Khan but your financial guide for a happy [Music] living NRI money Clinic no hype just the right advice dear viewers age band 35 to 45 the most important part of your life you are not somebody who is like a new batsman 25 to 35 years that's where people start their Innings but you are a set batsman in a test match you have seen how the bowlers are bowling you know
how the pitch is behaving you know the weather conditions you know what mistakes can land you into trouble now if you're a set batsman you also have the risk of doing mistakes and throwing away your Wicket that might happen in the case of a lot of people in real life situation we have to be cautious we should play the rule book and play the game as dictated then only a successful life will start from here onwards let's look at 10 things which you must focus on in this video now Point number one review of your
last 10 years of life this is absolute must why review of last 10 years is a must simple you would have come to the job market somewhere in your early 20s or mid 20s or late 20s you would have got married and you would have gone through life's experiences you are very new you are out of your clutches of your parents you have started an income there you didn't know what to do you could have tried a lot of things you have got a lot of experience now what works for you what is not working
for you and what things you did right and what things you did not do right there could have been a gap between your aspirations and your achievement all these things become an experience if your life has to take to the next level reviewing this is very very important sit with your spouse take a pen and paper start jotting down what did You observe in the last 10 years what you felt is working well for you what is that thing it did not work well for you based on these things the next set of things that
you can do later on normally the couples will have a sou searching kind of a sessions within them during this particular age uh you are trying to hit every ball into six in your early phase of your career but that is not working very well and husband and wife will get into a a conversation telling that look we are earning nicely we have young children now these are the things we wanted to do we did not do at all time is slipping away or maybe we should think about retirement so many conversations will happen in
your family time so you need to focus have a dedicated conversation start reviewing make notes and find out what comes out of that point number two saving is a must now the first 10 years of life could be a difficult phase for a lot of people you could have started with a small salary you could have initial expenses of clearing your education loan or paying back to your parents or setting up of the house or your marriage cost or the initial phase of expensive period of your setting up life is is behind you because of
all these things you wouldn't have saved a great deal of money during this period of time that's perfectly possible or there could be people who had a good salary who had a good saving abilities but did the mistake by watching several YouTube channels several advertisement which come on the YouTube telling that asking you to put your money into cryptos trading Futures options do this do do that all these things could have created a big hole in your savings pocket that's a part of your experience now but now there is no question of escaping from saving
now you should get into the hard saving part if you're not saving again sit with your spouse and find out where are you spending what's your income what's your expense where is that expense is taking why you are not able to save is it that you are overspending is it that you're income is very less where can you cut Corners if you are staying in a very expensive house probably you you can think of moving to something which is less expensive maybe you have to move to slightly farther area of a city where you can
sa if you are the habit of buying a brand new gadgets probably you can wait for a couple of months one year where the gadget prices will come down but that will also save your money if you apply your mind irrespective of whatever the salaries you are working with one salary two salary whatever it is it is perfectly possible for you to find out some money where you can save either increase your income or reduce your expenses or rationalize your expenses find out what is your wants and what are your needs keep the needs and
reduce your wants increase your saving potential only when you're able to save then you can build a financial life going forward Point number three take the assistance of a financial planner uh many people will tell you don't engage a financial planner try to do it yourself direct uh you will say have some cost and all these things that's the business model of those people who Advocate that you they also have a business model right they have to sell a course there they have a you know somebody who is doing it for a fee and kind
of a thing that's fine uh no grows on that but think about your life your life has many dimensions you have a career which gives you the income you have a family which is your source of strength you have a need you have a need of rest you have a need of entertainment you have a need to give time for your families as well so you already have three dimensions over there now there is a fourth dimension that you need to be doing something to increase your income that's the fourth dimension if you bring the
finance into it it becomes the fifth dimension of your life now if you try to focus too much into the financial side what might happen is you will run out of time because you run out of time you may postpone doing certain things then you do not have an experience you tend to do mistakes you do not know how to follow a process but bringing a financial planner into your life there takes away a lot of load out of you you don't have to commit time he will commit time for you or she will commit
time for you he will put in a process it will avoid the mistakes they are qualified people they have the experience with it the question is should you have a financial planner or not is not the question that you should focus on the point to focus here is get the right financial advisor advisor with an Integrity advisor with a competence advisor with an experience that's the difficult part luckily enough there are good number of financial planners available all over the world today of course it's difficult to find one but you will find them but if
you think you need the services of financial planners to help you you can make best use of services provided by N Money Clinic also we have team of experts on the ground not only in India but outside of India as well if you have any intention you can send us a message our numbers are shown here in the description box there there is a link also we have provided just click on the link it will take you to the WhatsApp and if you have an intention to engage for our services you can send that message
now and our team of experts will be ever ready to help you on that point of focus number four revisit your insurance need it must be done uh when I ask people uh about how much of insurance you have people will say yeah yeah yeah I've got a policy when did you buy a policy 5 6 years before why did you buy a policy a friend of mine had an agency an uncle of mine had an agency uh somebody in the known Circle had an agency that's why I bought the policy that's fine that's fine
those were your initial years your income was less you wanted to help somebody uh you wanted to favor somebody that's all fine but now is the time very how to get into the the real need- based issue you are earning well now your carrier is about to take off you have a human life value everything that you want to do in life depends on bringing home that salary of you and your wife back home if something were to go wrong and you are not able to bring home that salary either because of an unnatural death
or because of the bad luck of suffering a critical illness all the plans that you have done in your life will go for a toss people do a mistake of a lot of mistakes of buying Insurance the insurance that you should buy should cover your human life value either you should buy a large enough term insurance or you can think of buying a reduced term cover in in places like Dubai you have plant which will give you something called the family income benefit which is nothing but a reduced term cover packed on a whole of
Life plan so you can use whichever the plans that you want but nevertheless calculate how much Insurance you need what might happen in your life if such a situation were to plan out and cover that with the insurance if you have already bought certain insurance from the calculations you make reduce what you have pre-bought already and this time around buy the exact requirement a slightly higher amount of insurance is okay but you should never buy something which is required less than what you genuinely require I would like to add a point here a couple of
years before we had done a video a very popular video by name financial planning for beginners age group 25 to 35 I'll be giving a link to this particular video here in the card section and you must visit this video when you watch that particular video that tells you the first steps you have to take in life how it has to follow an orderly method and then it becomes easier for you to understand what I'm talking to you in this particular video so I spoken a lot of things over there and this particular video is
something which I'm taking to the next level here point to focus on number five revisit your emergency funds requirement emergency funds is something which has to be built at a regular intervals of time it is not a one-time Affair you could have started at your early part of life and you thought 2 lakhs is sufficient 5 lakhs is sufficient 10 lakhs is sufficient but the goal post keeps moving because you move up the ladder because your expenses rise because your needs can change over a period of time you need to revisit your emergency funds requirement
if it is less you should keep keep adding to it the only thing that you have to focus on uh when you build your emergency funds is emergency funds are not those fund to be kept idle in a bank account no the emergency funds can also be invested but it requires a different approach there the money should be in liquid form it should not be logged into something like a land bank or something into a close-ended fund or something which has a lockin period that's not the way likewise the funds where you have in invested
should also not be very volatile just in case if you need those funds then you should not be at the mercy of the markets uh to pull out your money if you want more guidance on how to build emergency fund how much you have to have how to calculate it there is a detailed videos on this particular Channel just visit the playlist called financial planning on my channel lots of videos which are available to guide you on the exact process of how to build your financial plan one of the video is building emergency funds and
everything you need to know about it please be guided from that video as well Point number six revisit your retirement planning you could have already started you would not have started you could have started with the right Earnest then dropped off indiscipline could be the reason for not continuing with your retirement plan but this is a time where you must focus on your retirement planning it's okay whatever the money you put in if you are at 35 years of P you still have roughly 25 years that's a good enough period to build a good retirement
Corpus if you are at 40 you still have 20 years that's a good amount of time to build a good retirement Corpus the beginning has to be made there is a right way to do the retirement Planning number one when you build your retirement plan discipline is a must time is a must the more the time you give to build your retirement Corpus the time works in your favor and the power of compounding itself creates a lot of wealth it doesn't matter how much money you put in it matters how much time you give it
for it higher the amount you put in it's always better but if you can't because of your compulsions of low income low saving abilities excessive expenditure whatever it is some amount should go into retirement planning there start it now if you have already started increase it once you put your money into the retirement uh partt a thing to remember is two things one under no conditions you should touch this money till the day you retire the condition number two it is a wealth building exercise you can't put this money into something like a bank FD
or into some kind of a bond some kind of a fixed income instruments that is not working well for you you have all the time in the world this is the time you take the wealth building way of building these retirement uh funds it could be stocks it could be an ETF it could be an index fund it could be a mutual fund portfolio it could be a unit link insurance plan it could be an NPS anything is fine as long as it focuses on wealth building and it is done under a professional guidance that's
perfectly fine don't lock your money into fixed income instrument thinking that you are building your retirement income Point number seven this is the crucial phase of your life this is a phase where in which you have proved your utility to your employers or proved your worth in your entrepreneurship Journey this is a time you are a set in your life this is a time you increase your income your income must increase you could be in company a uh if it calls for moving to Company B to increase your income please do that or take any
measures which will increase your income you can take an additional job after your regular office hours you can monetize an hobby you can learn a new skill which will help you to generate some extra money uh you could do anything which will Propel you upwards on your earnings Journey that must be done see at 35 to 45 years of age what happens is there is a lot of redundancy what you learned in your college or initial years is behind you the world moves on the change of pace that is happening is mindblowing unless you keep
Pace with the changing Trends you keep yourself up to date with the technology with the new things which are coming into the marketplace employers may feel that your skill sets are not adequate to push you up if you have any intention to move up the ladder you have to constantly keep upskilling yourself keep learning something or the other what skill to take you know your uh field better you know where you're working you know somewhere your mind will tell if I had this particular skill I would have got a promotion I would have got a
higher salary try working on getting that new skill likewise if you have built sufficient enough emergency fund or if it is possible for you to pursue qualification without quitting the job pursue a qualification I know of people who do certification courses every year they keep adding one or the other certificate they will come very handy if you were to change your jobs your focus should be on adding a skill your focus should be on adding a qualification your focus should be on monetizing your hobbies your focus should be on trying to get a higher income
focus on it put your minds on it don't put your focus on wrong things like you know trading Futures options cryptos don't go there instead focus on these activities that will bring you profits throughout your life Point number eight no one will tell you this but this is the need of modern times work on building a second income increasing your income is different building a second income is different increasing your income is adding a skill moving up the ladder that's creating an extra income a second income is something like you know you have invested in
a property and you get rentals you don't need to do anything out of that or if you have written a book and you might be getting some royalties or if you have invested in some plans which might give you the benefits of that particular plan at some point of time that is second income a second income cushions your life if you're at 35 to 45 post 45 you move to an area where your life goes through a phase where you will have a higher income but your expenses are are also very high you might also
pass through difficult phases in your life because of health issues for you or your spouse or your parents which might make you not pursue your career or take a break from your career and stay at home without having an income but if you focus your mind on building a second income during this 35 to 45 years of age then what will happen is post 45 years of age it will give you a lot of cushion you can take anything that suits the particular activity people who have got sufficient enough money could consider investing into fractional
commercial real estate which can give you immediate income you can also invest in something called guaranteed return insurance plan which can give you a good second income during your second part of life 45 to 60 years of age one thing I would like to stress here is you must work with your financial planners creating a second income calls for a lot of ideas calls for a lot of tact calls for lot of working on your cash flow requirement and fixing the right uh features in a particular plan don't try to do it yourself there could
be better ways of doing it so take the help of your financial planner sit with them discuss your case and take their guidance and start building a second income so this second income is like emergency fund is a modern phenomena and there are a lot of people who lose jobs around 45 years of age redundancy is a very common word these days so if you have built a second income or focused on this then your ability to withstand those vagaries in your career becomes very easy for you to handle in days ahead Point number nine
building funds for your children's education many people work on this but the problem area is they try to over prioritize children's education over other things all the points that I told you prior to this are more important than building up funds for your children's education see when it comes to question of children's education there are multiple options available with you it's the most difficult part for a financial planner or even for a parent to plan you do not know you at this stage you have very young children they could be in their primary school they
could have just arrived in your families they wouldn't have even gone to the school anything is a possibility you do not know how their life will evolve Beyond this point what course they will pursue where they going to study nothing is known how much will be the cost nothing will be known at this particular point of time but nevertheless we have done lots of detailed videos on how to fund children's education cost and again you can find these videos on our Channel there you please be guided so do not over focus on children's education if
you have attended to all the points that have told you earlier emergency fund building second income committing funds for retirement income then that is the time you focus on children's education put some money there and let that money be you know start building and whatever it consumes that's fine whatever it builds into that's perfectly fine don't put a Target that I should have 50 lakhs 1 CR for my son's education or daughter's education don't take that particular route instead of that commit certain amount of money compartmentalize it keep it in one place it could be
Bank Mutual Fund wherever it is that's perfectly fine don't go with a particular Target your child can study by taking an education there are multiple options which are available do not worry you may not like what I say focus on other areas child education should come later and it gives you multiple options when your child is at the doorsteps of the College Point number 10 a house to live in I have two sets of suggestions in this case if you are living in India you should not be too focused on buying a property at this
early age of life the reason is the rentals are far cheaper than buying the house your salaries may not be sufficient enough to fund a the buying the house see you can rent a house for 2% of the value of the house whereas a housing loan cost you 9 and 1 half% as things stand today the lowest we saw was about 6 and 1 12% so it will take a disproportionate amount of money from the income that you are generating so it always make sense for you to postpone buying house in India than to go
for it immediately and if you try to buy a house very early like the what your parents tell you might land into different set of problems you may not have enough money to do the other things what I listed over there you may suddenly think that okay I cannot sustain it I'll stop this plan I'll pay for the housing loan which is which is a priority bank will not let you go if you don't make the payment for that so don't do that mistake but on the contrary if you are living in developed World Like
Us Canada Europe or in Dubai uh your rents are quite High it makes absolute sense for you to buy an affordable house in wherever you are which will make your expenses get converted into Equity let's say that you live in Dubai and let's say that you are paying roughly about 6,000 7,000 dams a month as the rentals you can buy a property and you can keep your Emi at the same level and in most cases which I have seen or which I have advised people are able to get the Emi lesser than the rents what
they pay all the rent that you pay is an expense at and if you working for 20 25 30 years in Dubai at the end of the term you don't get anything but if you buy this house and square off the rent with the emis that you have to pay to the bank when you come to the end of the career you have some Equity chances are that the property prices have moved up chances are that it may sell it for 50% but nevertheless you have a residual value in most likely that value is much
higher than the price what you have paid for so if your rents are very high high like in developed World Dubai and other places it make absolute sense for you to buy a house at this period of time if you are living in India it makes better sense for you to postpone this buying of the house you could be moving from places you could be working in Bangalore today and a few us down the line you might move to ahmadabad or to Hyderabad or to Chennai or some other place and if you rent out the
house it hardly generates 2% it will not be useful for you so sit with your planner make a calculation find out whether it makes for you to go for the house or to postpone buying and take a decision which is in your best favor dear viewers I have given you the 10 points uh very few people are able to cover all these points but if you are the lucky one who has attended to all these 10 points and still left with money then you can focus on last activity called wealth building investing into mutual funds
ETFs PMS accounts fractional real estate Parcels of land buying into stocks you can do anything do that only when you have covered the previous all the 10 points that I have listed over here dear viewers hope the video that I have done today helped you to understand and put a process in your financial life if you follow this then I have no hesitation to say that you'll be very very successful financially in your life if it did help you do not forget to give me a thumbs up if you're a person who is watching my
channel for the first time or if you yet to subscribe for the Channel please hit that subscribe button and press the Bell icon on do not forget to share these videos with your friends and relatives near and dear ones and on all the WhatsApp groups on which you are connected with thank you very much for watching this episode on NRI M Clinic I shall be back with you next Friday with yet another thought on your life your money till then stay safe J hin press the Bell icon for more details and subscribe our [Music] Channel
