Living on 25,000 per month as a college student in Bangalore | Fix Your Finance

 

Foreign later, oh fix your finance.

Welcome to another episode of fixture finance guys. Today I've got 21 year old, vikas from south bangalore. Hey my name is vikash chabria. I am currently a third year student at christ academy, I'm doing my bba apart from college. I work at two different places. I work at a restaurant in bangalore. This is a fine dining restaurant called grasshopper. Where I work as a food service specialist. I work at the restaurant well in the evenings. Apart from working at the restaurant, I work at an early age startup in bangalore called cool. I love tracking the markets. I have a subject in college which helps me learn about the stock market, so I am really interested at tracking the stock markets and also learning about the financial world. So I'm really happy that anshuman is at my place to help me with my finances, because I'm quite young at this point of time- and it's really difficult for me- to manage my finances so vikas you are currently doing a bba. You are working in a restaurant and you are also working in a party startup I'm doing this much because I get to meet a lot of people at the restaurant.

I'm working at you get the cream of bangalore at the restaurant, so the kind of people who come here bring up new opportunities, open new doors and I work at a startup because that is as good as doing an mba from a tier one college. Are you able to manage your college uh after doing these two jobs? Yes uh so college? I have bare minimum attendance, which is 75 percent attendance, which is that's bare minimum that is bad wow wow. That's a strict college, yeah nice. So currently, how much are you earning from your restaurant job? So a restaurant depends from 12 000 to 15 000 a month and the startup. Since I mentioned its bootstrap, I take a bare minimum stipend of 12 000 rupees, okay, so around 24 25, 000 rupees. You are making as of now so this is very interesting because currently you haven't even graduated. You are staying with your parents, okay and you are making 25 000. So I am sure that a lot of people who are watching this video are students and they are finding out ways to make money? So how do you apply for these jobs and these restaurant shifts cold emailing is the only way so I sent him email. So now let's talk about your expenses, so you are staying with your parents, so I'm guessing you don't have to pay them rent. Yes, are you also paying the housing emi or anything or nothing? You don't have any uh living expenditures, nothing! No, rent! No! Oh! Nothing! For all the urban kids watching this, this can be one of your biggest superpower. If you can stay with your parents for free and if you can make even 10 15 000 a month, then you will get a very big head start. Very big head start like I'll give my example during my lockdown for one one and a half years. I was making money and, at the same time I didn't have any expenses, because I was staying with my parents because of that I saved up so much that one fine day when my business needed me to shift to bangalore. I didn't even have to think twice so if you have that privilege of staying with your parents, then please please do initially because of course, but a head start. What about food? Do you pay for grocery? I don't pay for groceries. Okay. So what are your expenses? I've taken up? A cult fit emi, so I pay 2000 rupees a month for nine months, so that is currently running.

I uh have mostly all the ott platforms youtube premium. So I pay for that. So you have netflix hot star. Woot sony live literally everything you can think balaji to young food. So how much are you spending each month?

I think 1500 rupees a month, I'm a foodie. I like exploring restaurants in bangalore. I don't mind how costly it is, at least if I can go to that restaurant at least once I go there. I make sure that every three months I visit a five star, so my monthly outing budget is five. Six thousand I pay for my own internet because I, like my internet to be a little more faster, so I have 150 mbps, so I pay around about thousand rupees a month. So I take up a lot of courses I like to upskill myself, so I've kept a budget of 2000 rupees a month. Also I see this fancy laptop. So did your parents gift it to you or did you buy it yourself? I bought the laptop on my own. This costed me 90. 000 rupees, okay. So what was the installment 11 833 to be precise? Okay, so when did this emi end last month last month, so prior to last month for those six months, you probably didn't have a lot of room right, because 50 percent of your money was going into the laptop. So so during that time, but did you have to cut or cut out on anything any expense? So not on my wants. I was. I didn't really think back well that time I didn't cut on my wants, but I cut on my investments, which is a big mistake I did, and what about dates? Do you go out on dates? Can we cut this? Okay? What about shopping? Your friend told me that you got a new t-shirt for the shoot yeah, so for this t-shirt I kept a budget already so these were our expenses. Now, what are your regular investments? Do you invest in mutual funds? Yes, I do. I have a 4 000 rupees every single month, okay, so in one fund or in three different funds, two are indian and one is a fund which invests in the foreign market, so that's 4, 000 rupees every month. Apart from that, do you have any recurring investment? I have a rd uh worth two thousand rupees: okay uh. I follow the web three space a lot, so I try to do bits and pieces of crypto um.

When was the last time you invested in crypto, I think uh, two months back. So that's uh before the luna crash yeah right before the luna crashes, then I stopped okay, so that was in may yeah. So that was three months back three months back. Okay, so you don't regularly invest when I used to invest, I invest only so.

Why did you stop? I think I got a little scared after the luna crash, because luna was a coin which was doing really well, and I thought that could happen to any other coin. Okay, so 6000 is a recurring investment. Crypto is basically season to season, and apart from that, do you invest in anything direct stocks? Are you looking at the price before investing or do you just when I started off? I started off with my recommendations given with my friends. So a lot of people in and around my surroundings invest. So they tell me a suggestion and I go ahead and buy it. I don't look at any of the fundamentals of the company. I don't look at the. What do they say? The price technical analysis, pricing? Nothing is never, and I invested so that's how I started off my investment journey, but now I'm going to apps like ticker tape and just doing a little bit of my own research before I invest.

So this is our own checklist. First things: first, you are spending less than what you earn. So that's in itself is a very big green flag because most of the things are sorted if your expenses are in control. Second, do you have a health insurance? I don't have a personal health insurance, but me my mom and dad my dad have family insurance, which covers five lakh rupees for all the three of you, okay got it. I would personally suggest you to increase the limit because your parents are older, so if they ever get hospitalized in the worst case scenario, then the cost might increase. So five lakhs might be a lower for three for a three member family so consider increasing it. Do you have a term insurance? I don't uh. I had it in mind. I will do it soon. I think in a few more years. Maybe yeah, that's fine! That's fine, the only thing is the sooner you start, the lower will be the premium amount, that's it but yeah you're too young you are, you haven't even passed, passed out from college. So it's fine. Do you have any loans? I don't. I had an emi which got over, but nothing for now. Uh. Do you track your expenses? I don't. I don't track any bit of my expenses. All my money comes in and goes away without, even so, how does it function? So you basically know that you are earning 24 000 osmosis 6000 will go in your rd and mf mfsip, apart from that, you have absolutely no idea how the eighteen thousand rupees goes, the four thousand buffer I had for all weather, investing and direct stocks. That is, you know. One thing that you can do is you can automate this thing reason being like, let's say by by the fifth of each month, you get 24 000 the entire amount.

You think that yeah, like all my expenses, will be taken care of uh in just fifteen thousand within fifteen thousand, then what you can do is buy the fifth of your month: okay, the entire nine thousand rupees six thousand, the direct challenge, our repair, you put it in another bank account so that that's out of your site out of your mind and that becomes like your extra savings kitty, do you have savings? I do have savings. Uh. Have you filled your taxes? Not yet so I don't really require to do it at this point of time, because not getting a very formal kind of stipend, also it's lesser than five lakh. So you don't need not file your taxes, but if you are planning to take loans or anything in the future, then please file your itr. Now it's time for our own rapid fire round. We call it fatah fat finance. What would you prefer five lakhs a month for the next 10 years or five crores today.

I think I'll choose the second option: five crores today, moving on to the next question, by the way guys, I want all of you to answer these questions in the comment section: a hundred percent chance of getting one crore or a fifty percent chance or winning trend. Crores, what would you prefer, I think, second chance, because then the probability of earning more is a lot. If you had an unlimited budget, what would you spend the most on travel food shopping, new hobbies? I think new hobbies will be my answer. What would be the first thing you would learn? I would learn uh how to do the latte art. I love coffee, so so cup cup hard banana okay, makes sense. What's the most expensive thing that you purchased last, I think my laptop okay, which one's around about 90 000 rupees. So that's my last. What's your guilty pleasure espresso at 12 and you don't care about what you're paying for that cup right now, all right man. That was the last question. You did really well. Thank you. So much do you have any questions? Yes, I do have a lot of questions but uh. I will ask you the main ones. The first one is. How do I control these um expenses, which come out of my control? For example, I see an ad on instagram, for example, a coffee frother, something which I really like costs me 5 600, but I don't even think for a second. I go ahead. If I have money in my bank account I'll buy it so these impulse purchases.

I love impulse purchases, okay, but one thing which I've realized is the more impulsively you buy it. The higher are the chances that you might not actually like it or enjoy it. Also take it. So one thing that you can do is you see a coffee frother on instagram and you're like oh? I need it right now. Let me just save it I'll come back after two days. If the urge to buy the frother is still the same then I'll go ahead and buy it because you can afford it. You have to identify if this me, if this urge is actually real or is just impulsive, so wait for two days and go back to that item again. Another very important question I have is, since I don't really have responsibilities at this point of time and the money.

What I'm earning, as you said, is all extra. So where should my money go towards for the next two three years, I would say it should go more towards in experiences. Should I spend it more on traveling, or should I put it towards the stock markets? You can do both actually because out of 24 000, you are only investing six thousand okay, so eighteen thousand rba out of which your fixed expenses might not be even ten thousand. So if you are planning to go to a trip next month and if you need ten thousand rupees, you can plan it in advance, like five thousand and next month. Also I'll keep five thousand aside, and you can do that. So I would suggest see, do not just invest reason being six years, seven years later, tk, when you start making way higher than what you are doing right now, you would realize that the amount that you saved up in six months during this phase of your life, you would be able to do it in a month itself and then you'll be like I should have gone there, because the amount which I saved back then by not going with my friends by not taking up that course today. I can save it in less than a month, so you will regret it since it's not been a very long time since I've started investing it's just been over a year. So I have this anxiety of checking the market again and again with no intention with no intention of checking just seeing the numbers.

This is my savings and it's gone this higher or this lower. So how do I stop looking at the markets again and again, it's just sheer anxiety and, firstly, it's not your fault. The markets are designed in a way that they will make. You feel that something's happening every day. Let's say because, every day whenever you see a stocks price, it's either in green or in red tk. So that's why you feel that something is happening. But if you are investing your 5000 rupees every month for a 10-year goal or a 5-year goal, then that green or red in a single day will never make a difference in your life but anxiety, hoga yoga.

If this is not trading- and this is investing- which means that you are investing for a longer period, then you need not have that app on your phone man. It's fine, because nothing is going to change. Even if you look at your portfolio once a week or once a fortnight nothing's going to change for you, I think one question is about credit card I've just so it has a 20 000 rupee budget in it. Please don't do it like see uh. I think all these buy now pay later cards right. They are specifically targeting college students and everyone so that they get into a habit of spending more than what they earn.

You currently are earning a lot of money for your needs, so you do not necessarily need a credit card and people who are not earning college students who are not earning you also, please don't get a credit card. A credit card is a tool which is only for the financially sound people. Oh fifty thousand sixty thousand limit hey, so you feel that you are capable of spending that fifty sixty thousand, but the reality is, if you are earning 50 000, a credit card company will give you a limit way more than what you want so that you break down your spending and pay them an interest. So these are the questions I wanted uh to ask conscience about, and I've got clarity on a few things. I hope this helped man definitely most definitely did help. So, if you're in bangalore- and if you want us to visit your house and discuss your personal finance, then please please fill the form also, if you're from other cities. Do you also please fill the form, because in the coming months we are planning city tours? Okay, so guys, if you found this video helpful, then please please hit the like button and uh, because if they haven't subscribed to the channel, then what did what should they do subscribe now, right now and also press the bell notifications, because every week one new episode of fix your finance will be out.

This is anshuman thanks, because for doing this and I'll see you guys in the next one