I am sure most of us would have seen the movie “Delhi6”, a dialogue in the movie stays that “Hindustani bahut jasbadi hoten hain”(Indians’ are very emotional people), why not ,we are Emotional people as this is the only country in the world where one hand feeds many mouths. From ages our forefathers have asked to us to “Save” and I feel that is what had saved us from the global crisis (You might debate here, but it’s a thought), but I were to add its better that if rather than savings if we channelize the funds towards “Investment” it will really help us grow and emerge as strong nation.

Many a times I have heard people say that “don’t earn sufficient money” so that can not save etc. and my income is so low, I could not even think about financial planning, Sorry this is PURE BULL. I am sure that you will know a lot of people who in the last few years have managed to retain their jobs even with pay-cuts and also managed; the reason quite simple, they had cut down their discretionary expenses and that are what needs to be done.

Remember, “Incomes are always never higher.”

Most of have grown seeing the following equation


To quote by us, it has to be
INCOME – SAVINGS = EXPENSESand that is the mantra for making money and nothing else. If you are prudent enough to saving enough to save first and then do the expenses mark my words you are one of those guys’ people would aspire to become Wealthy and Financially Independent.

Personal Financial Planners are not just for Wealthy people.

Every individual can benefit from objective help to create, grow, accumulate, and utilize wealth one’s personal goals, family goals and other lifestyle objectives systematically without any anxiety. We can guide individual to achieve their ultimate aim of spending retired life peacefully without compromising living standards.

Let me ask you a very tricky question “Can you live with 90% of your salary”

Answer this honestly. Don’t be rush, think about it and then answer this very important question. If you get a salary cut of 10% and you have to live with 90% of your salary, how will it affect you? I will see some important insight on spending habit and psychological issues.

Most of the people do not save anything at the end of the month and the biggest reason is that they are not left with anything (as they say). “Supply creates its own demand”, This applies to Personal spending also. When we have money in our hand we will come up with all the reason why we have expenses and why we can’t with any money less than that . Answer these following questions.

If you get a salary cut by 10%, will you be able to

– Pay your Rent
– Meet all the household expenses
– Pay your children fees
– Spend on all the important things like Entertainment, eating out ,occasional splurging etc .

I can bet that most of you will have answer in YES!! . If people control and prioritize their spending, It totally possible to live in 90% of salary. Just close your eyes and imagine a situation that you are now earning just 90% of your regular salary. Small savings can make up large chunk of investments. If you try to answer the above questions, the answer would be a YES for almost all of you . There can be some exceptions, but i am talking about majority.

For some people, they may require cutting on totally useless stuff and reducing expenses on something which can/should be reduced.

Some of the examples are

  •  If you see go out 5-6 times a month , reduce it to 3-4
  • If you see 5 movies a month , reduce it to 4
  • Anything where you can do with less spending.
  • Does saving 10% means that you start living a frugal life
Please understand that saving money does not mean depriving yourself. The only thing I am saying is We Indians especially in Metro cities have slowly started going the American Way, i.e. Spending more than what they can earn. From last couple of years, we are using to much of credit cards in wrong way.
We are a nation which saves but do not invest properly , and now we Indians have started spending like never before. Spending is good, Spending on useless stuff or stuff we can do without can be like cancer. It will not hurt you immediately, but kill you some day.
Now after you have realized that we can really live with 90% of our salary, what can we do with it . SAVE IT!! , what else. I believe (and I can prove) that saving 10% of your salary is only what you need to do to achieve all your goals in Future , provided you
Start Early and Have realistic goals A person who is 25 yrs old and earning 40,000 per month if saves 10% will his retirement(60 yrs) would be having anywhere from 2.3 crores to 6 crores if he earns anywhere from 12%-16% in long term which is totally acceptable.

What to do?Next time you get your salary, take 10% out of it and deposit it in some other bank account . Just try to see if you can do with 90% of your salary. I bet you can do it . Saving 10% of your salary can have drastic effect on your investments. You can create nice wealth using Equity in long term .

One of the readers Satish comment is worth notice. Please see his comment.
That was on the bulls eye. A little bit of decrease will not affect lifestyle much, but has a lasting impact on your wealth. I have an automated schedule put to transfer 15% of my salary (a fixed amount every month, which is revised if salary. changes) to another account. at end of 6 months it feels good to see the lump sum which can go in for further investments. “What he did is worth appreciation. I hope people learn from him.


We don’t save because we think we cant save . Whereas if you try its totally possible. Just to try do this next month

– When you get your salary , take 10% out of it and deposit it in some other account and try to live with 90% of your salary , see what all your are missing and if you are facing some difficulty or not.

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Suresh Kumar Narula

SEBI Investment Advisor, Founder & Principal Financial Planner at Prudent Financial Planners
Suresh K Narula is founder and Principal Financial Planner at Prudent Financial Planners. He has earned the professional CERITIFIED FINANCIAL PLANNER and got registered with SEBI as Investment Advisor. He writes on personal and financial planning articles and got published in Dainik Bhaskar, Business Bhaskar and The Financial Planner's Guild, India. He is also a member of Financial Planner's Guild India ( An association of practicing SEBI registered Investment advisers) to create awareness about Financial Planning in general public, promote professional excellence and ensure high quality practice standards. Suresh received his an M.com from Himachal Pardesh University and an MFC from Punjab University, Chandigarh. He can be reached at info@prudentfp.in
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