Introductory Thoughts - From Awareness to Action
Money offers comfort, but wisdom fosters confidence. Genuine intelligence involves not only earning well but also managing your income wisely. Financial discipline extends beyond increasing your bank balance; it instils a peaceful security in your life. Someone who perceives their family's future as secure carries themselves with calmness and speaks with dignity.
Earlier in this series, we examined how easy loans, digital temptations, and the urge to impress can entrap many young professionals and non-professionals in hidden debt. We discovered that true financial independence starts not with receiving your first pay cheque but with managing that income responsibly and with discipline. Today, we move from understanding to action because money doesn't expand in chaos; it grows through clarity, discipline, and patience.
"When you master your money, you master your mind; and when you master your mind, you master your life."
(Scene: A bright Tuesday morning. The office looks unusually calm. CA Amit walks in early, proudly carrying his homemade lunch. CA Pooja and CA Rohit are already at their desks.)
Scene 1 - The Day After: When Resolution Turns to Action
CA Pooja (smiling): Wow, Amit! Homemade lunch again? It seems that our efforts to improve financial fitness are really paying off!
CA Amit (laughing): Absolutely! After yesterday's talk, I realised that savings start not in the bank but in the mind. I'm working on eliminating small, unnecessary expenses.
CA Raj Jaggi, walking in with a cup of coffee, greets the team: "Good morning, team! Excellent work, Amit. I see that yesterday's discussion has already yielded positive results. Remember, every wise decision you make today helps build a calmer tomorrow."
(He takes his seat, looks around, and continues with his familiar calm authority.)
CA Raj Jaggi: Let's elevate our discussion. Yesterday, we discussed the problem - unnecessary spending; today, we turn to the solution - deliberate saving. Before we start, I want to share a line that has inspired me for years:
"Reduce life's complexity by removing unnecessary desires."
Distinguishing needs from wants often helps resolve many financial issues. Simplicity is not about lacking wealth; it is about empowerment-the ability to live peacefully without being limited by a luxury-focused lifestyle.
Scene 2 - Building a habit, not a burden
CA Rohit: Sir, honestly, saving appears straightforward theoretically. It's a good idea, but it proves challenging in real life. We make plans each month, but once bills are paid and festivals come around, there is often little left to save.
CA Raj Jaggi (smiling): Most people follow the wrong order-spending first and saving later. I often say, "What remains after spending is never enough to save." The wise person reverses this pattern-saving first and spending afterwards. Before the month begins, set your fixed savings for PPF, LIC, SIP, and automate them. Then, allocate your expenses within the remaining amount. This simple shift can change your life. Remember, saving is not a punishment;it is an act of self-respect-a quiet promise to your future self.
Scene 3 - The Role of Long-Term Savings
CA Amit: Sir, you've always emphasised the importance of long-term savings, such as PPF and LIC policies. But many youngsters think they are outdated.
CA Raj Jaggi (smiling): Outdated? Never! The Public Provident Fund (PPF) and long-term LIC policies are like old banyan trees - stable, dependable, and deeply rooted. The PPF has a minimum 15-year term with the option to extend in 5-year segments, offering the rare Triple EEE benefit - exemption on contributions, interest, and final withdrawal. Since it is backed by the Central Government, safety is guaranteed. Additionally, under certain conditions, you Can make partial withdrawals or take loans against your PPF balance. So, it combines long-term stability with flexibility.
Likewise, LIC policies-especially those from LIC of India-serve more than just insurance; they represent a disciplined savings habit. You're not only protecting your family but also training your mind to save regularly. Though these schemes might not be flashy, they provide stability-and in finance, stability is often the most underrated form of success.
Scene 4 - A Thought for Young Parents
CA Pooja: Sir, what about young parents? How should they plan for their children's future?
CA Raj Jaggi thoughtfully replies, "Excellent question, Pooja." In my view, parents should begin the process themselves-starting small and early, rather than waiting for a windfall. They can set up long-term savings accounts, such as PPF or LIC policies, in their own names with the intention of transferring the benefits to their children later. Regularly depositing small amounts each month, over time, will take advantage of compounding and foster discipline. When the children reach maturity, they will have accumulated a significant sum - not just money, but a valuable lesson in financial responsibility.
Seeing parents' calm discipline leads to real savings and offers children lasting motivation. They soon understand that wealth results from patience, not luck. The most extraordinary inheritance we can give is not money, but a mindset for managing finances.
Scene 4-A - The Power of Financial Patience and Inner Confidence
CA Rohit: Sir, in the age of instant returns and fast results, patience feels out of fashion. Everyone wants to double their money overnight.
CA Raj Jaggi (smiling): Exactly, Rohit. We live in a fast-paced world, but wealth grows over time, not in seconds. The most successful investors are not always those with the highest returns; they are those who stay invested through both ups and downs. Remember - "Time tests patience; patience builds fortune." A seed does not turn into a tree overnight; it grows steadily with patience and trust. So, give your money space to grow; be patient with your savings. And keep in mind - your personal savings boost your confidence to handle financial challenges independently. They grant you the strength to stand tall without relying on others, even family. Facing life's uncertainties with your own resources brings a dignity that borrowed money can not buy.
But this habit of saving - this life-changing discipline - does not come automatically. It has to be cultivated through conscious and determined efforts. You must train your mind to prioritise saving every month, just as you train your body to exercise daily. The difference between people who save and those who do not is not income - it is intention.
"We don't find time or money for savings - we make it."
Once this habit becomes part of your routine, it strengthens every area of life - from decision-making to self-respect.
"Dependence may bring relief for a day; independence brings peace for a lifetime."
CA Raj Jaggi (smiling): Rohit, your line brings to mind a recent advertisement from the Reserve Bank of India's "RBI Kehta Hai" campaign - you probably saw it. In that ad, a well-known cricketer glances at his teammate and asks with a smile,
"Batao bhai, kabhi kisi batsman ko 5 overs mein double century marte dekha hai?"("Tell me, have you ever seen a batsman score a double century in just five overs?")
Everyone laughs, but the message conveys pure wisdom. Just as centuries in cricket require time, patience, and perseverance-true wealth also demands consistent effort and disciplined saving. There are no shortcuts to greatness, whether in cricket or personal finance.
CA Raj Jaggi: That RBI message is straightforward but important - be cautious of schemes that claim to instantly double your money. Genuine growth takes time, not shortcuts. The Reserve Bank of India also emphasizes that "risk and return are like two sides of the same coin - higher returns come only with higher risk."
(He pauses and looks around.)
We should all remember that money which accumulates too quickly often vanishes just as fast. Wealth built gradually and honestly tends to last longer; it provides peace rather than stress.
"Patience may delay success, but impatience destroys it."
Scene 4-B - The Need for Nominees and Diversification
CA Pooja: Sir, people often open so many savings accounts, insurance policies, and investments - but many forget to update their details later. Does it really matter?
CA Raj Jaggi nodded and said, "That's excellent point, Pooja - it's crucial. In our field, we often observe savings that are available but don't reach the family promptly due to missing nominations or incomplete documentation. To prevent this, it's strongly advised to designate a nominee for all savings and investment accounts - including PPF, LIC, mutual funds, or bank deposits. Life is unpredictable, and responsible financial planning means ensuring your hard-earned money can easily reach your loved ones without legal issues or emotional stress.
"We cannot control life's uncertainty, but we can certainly control our preparedness."
A few signatures today can save your family months of difficulty tomorrow. True financial wisdom is not just about accumulation - it's about protection and continuity.
CA Amit: Sir, once we start saving regularly, how should we decide where to keep our savings?
CA Raj Jaggi: I firmly believe in diversifying savings, much like planting different crops to avoid total loss in a storm. I never advocate the idea of putting all savings into a single account or instrument. Instead, depending on the amount, spread savings thoughtfully across various sectors and instruments such as LIC policies, the Public Provident Fund, bank fixed deposits, gold or sovereign gold bonds, and real estate. This approach enhances safety and flexibility, ensuring that as life circumstances change, not all savings will move together-some may grow while others remain steady-thus helping to maintain overall financial stability.
"Never put all your dreams in one basket; let different savings guard different seasons of life."
And remember, the goal is not to invest in everything, but to invest with understanding. Choose instruments you can monitor and sustain. Financial management is not a race - it is a rhythm.
Scene 4-C - Health Is Wealth: The Wisdom of Mediclaim
(The atmosphere turns gentle and reflective as CA Raj Jaggi speaks with quiet sincerity.)
CA Raj Jaggi: I strongly advise that you and your family obtain a comprehensive Medical Insurance policy. Many young professionals tend to postpone health coverage, thinking they won't need it in their twenties or thirties. Yet, unexpected hospital stays can happen at any age. Sharing his personal story about his late wife, Mrs Renu Jaggi's cancer treatment, he emphasizes how unpredictable and expensive modern healthcare can be, with costs often escalating quickly after admission, often influenced by emotional factors that impair judgment. That experience taught me a vital lesson - Mediclaim is essential, not optional. Even if your employer offers medical benefits, having your own policy acts as your true safety net. Company coverage can change, and employment may shift, but your personal policy stays constant - a silent guardian of your family's health. Think of it as equally important as saving or investing.
(He pauses briefly, then continues in a soft, thoughtful voice.)
You know, there's a timeless line from the film Anand (1971), where Rajesh Khanna's character, knowing his end is near, still smiles and says -
"ज़िंदगीबड़ीहोनीचाहिए, लंबीनहीं।"Zindagi badi honi chahiye, lambi nahi."Life should be big in value, not merely long in years."
That single line carries an entire philosophy - we cannot control the length of our life, but we can surely shape its quality. And one essential part of that quality is being financially and medically prepared.
A similar depth of emotion was shown in another classic, Dil Ek Mandir (1963), where tragedy and compassion walk hand in hand. The dying husband tells the doctor -
"डॉक्टरसाहब, आपमेरीजानबचाइए, मेरीपत्नीकेलिएनहीं, अपनेफ़र्ज़केलिए।""Doctor saab, aap meri jaan bachaiye, meri patni ke liye nahi, apne farz ke liye.""Doctor, save my life - not for my wife's sake, but for the sake of your duty."
Scenes like these remind us that life is unpredictable and only becomes noble through responsible actions. While we can't control destiny, we can lessen its impact with foresight and planning. Believe me, everyone should have a Mediclaim policy covering their entire family, even if it means giving up some personal luxuries. A new phone, an extra trip, or a weekend of indulgence provides fleeting happiness, but health insurance grants lifelong peace of mind. Genuine luxury isn't material possessions but the security and confidence they offer.
"Health insurance is not an expense - it is an assurance.""When you insure your health, you secure your wealth."
(He looks around the room; his tone turns emotional yet firm.)
Remember, the emotional reassurance of knowing your family is financially secure is invaluable. Experiencing firsthand exposure to illness, I recognise that hospitals are invaluable during a medical crisis. challenge not just the patient's resilience but also their family's readiness. Begin today: safeguard yourself and your loved ones. That is the most genuine expression of careyou can offer.
(The room falls silent; everyone senses both the pain and the wisdom behind Raj Sir's words. A line from Anand seems to echo softly - "बाबूमोषाय, ज़िंदगीऔरमौतऊपरवालेकेहाथमेंहै… हमतोसिर्फ़ज़िंदगीकोबड़ाकरसकतेहैं।"
Scene 5 - The Joy of Simple Living and Wise Saving
CA Amit: Sir, I guess the biggest challenge is not earning money, but learning when to stop spending it unnecessarily.
CA Raj Jaggi: Exactly, Amit! Today's generation isn't struggling with poverty but is flooded with abundant resources yet lacks clear guidance. As the saying goes - someone earning ₹100 but consistently spending ₹200 doesn't need a wallet; they need a plan. (Everyone laughs.)
And this truth was beautifully captured in the following memorable song from the film Teen Bahuraniyaan (1968), which goes:
आमदनीअठन्नीखर्चारुपैया,आमदनीअठन्नीखर्चारुपैया,भैया, नपूछोनपूछोहाल,नतीजाठनठनगोपाल।
(English translation: )
Income is half a rupee, expenses are one rupee; Brother, don't even ask about my situation - The result is nothing left in hand, empty pockets and silent despair.
(The team chuckles, but the message sinks deep.)
CA Raj Jaggi (smiling reflectively): A few years later, another timeless song conveyed an even more profound message-centred on self-reliance and respectful behaviour. This song was from the beloved film Haathi Mere Saathi (1971), and I believe every young professional should remember it personally.
मेहरबानोंक़दरदानोदोस्तोंयारों, अरेखेलदेखोखेल,दुनियामेंरहनाहैतोकामकरप्यारे, हाथजोड़सबकोसलामकरप्यारे,वरनायेदुनियाजीनेनहींदेगी, जानेमाने, जानेमाने, जानेमाने, जानेमाने,दुनियामेंरहनाहैतोकामकरप्यारे, हाथजोड़सबकोसलामकरप्यारे।
(English translation: )
Ladies and gentlemen, respected friends, come and witness the show unfold. To survive in this world, my dear, work diligently and remain humble. Greet everyone with respect and folded hands; otherwise, this world will not allow you to live peacefully. Whether known or unknown, famous or forgotten-the rule is the same. To thrive here, work sincerely and stay humble.
CA Raj Jaggi: These lines might be from movies, but they convey real life lessons. The world honors those who work hard, plan, and persist-not those who just wait for luck to turn their way. Achieving financial success, like any other achievement, begins with discipline and effort. Keep this in mind. - "Reduce the complexity of life by eliminating the needless wants of life." True joy doesn't come from owning more, but from needing less. Simplicity is not weakness; it is strength in its purest form.
Closing Reflection - The Wake-Up Call of Wisdom
(The team sits quietly, moved by Raj Sir's words. The office clock ticks softly, echoing the rhythm of self-reflection.)
CA Raj Jaggi: I intend to emphasise the importance of respecting money as a means to enhance financial management. Instead of blindly pursuing money, it's better to guide it wisely. Saving now helps protect your future. While savings, investments, and insurance might not make you rich immediately, they strengthen your financial foundation over time. Remember the saying, "Money grows when gratitude grows," and understand that "Simplicity is the highest form of sophistication." Financial security is not the ultimate goal, but rather a foundation for living a meaningful and purposeful life. When you are free from financial worries, you can dream, serve, and live more fully.
"पैसाकमानेसेबड़ाकामहै - उसेसंभालनेकीसमझ।"(Paisaa kamaane se bada kaam hai - usse sambhaalne ki samajh.)"Earning money is easier than managing it wisely."
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This line beautifully conveys that the objective measure of intelligence is not income, but understanding - the wisdom to save, protect, and grow what one earns.(Everyone smiles with a sense of clarity and quiet determination. A new chapter of financial awareness has begun.)
Concluding advice
Financial freedom isn't achieved solely through a high income; it results from small, consistent habits. Begin saving early, maintain simplicity in your life, and set a good example for your children. Wealth accumulates over time through steady monthly decisions and smart choices, rather than one big move. "Let your money generate peace, not pride."
To truly attain financial freedom, start by establishing clear financial objectives and creating a practical monthly budget that addresses both your essential needs and personal goals. Keep track of every expense consistently, even small ones, and look for patterns that could help reduce unnecessary spending. Prioritise saving-no matter how small-and set up automatic transfers to pay yourself first, supporting steady progress despite life's ups and downs. Avoid debt traps by paying off high-interest debts and using credit responsibly as a beneficial tool rather than a temptation.
Adopting a simple lifestyle encourages contentment and cuts unnecessary expenses. Practice delaying gratification whenever possible; smart shopping, cooking at home, and making thoughtful purchases can boost your financial resilience and help you build your wealth gradually. As these habits become habitual, you strengthen your financial discipline and set a good example for future generations, passing down a legacy of security and wise money management.
Remember, genuine happiness and peace come not from fleeting possessions but from stability that allows you to confront challenges and pursue your dreams without financial worry. Make financial decisions purposefully and aligned with your values-ensuring your wealth serves your life instead of controlling it.
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