1. My August Bank Statement - First, Let's Try To Understand How This Game Works. For This, I Downloaded My Monthly Expense Bank Statement, And I Am Showing It To You In A Preserved Manner. This Is My Bank Statement For The Month Of August. So You Will See The Dates Of August, 1st August, 2nd August, And These Are Everyday Expenses Sometimes Done Through UPI, Net Banking, Or Money Transfer, And So On And So Forth. I Have Removed The Narration, It Is A B C X Y Z. I Have Kept The Check Reference, So That There Is A Genuineness That It Is Actually Mine. And These Are The Kind Of Payments That I Make, 492, 3135, 6750, These Are Normal Payments That Keep Going On, It Might Be Happening With You As Well, On Zomato Or Uber Or Ola Or Netflix, Monthly Subscriptions, EMI, Whatever The Case Is. Now The Idea Is That Can You Round It Off To The Nearest 10, 20, 50, 100, Or Something. For Example, If I Round Off 492 To The Nearest Ten, Then It Would Be ₹500. And That Means The Difference Between 492 And 500, Which Is ₹8, If I Put That In A Piggy Bank And I Begin To Invest That Amount, Then Two Things Will Happen. One Is That It Won't Pinch You, Because To Round Off 492 To 500, Only ₹8 Is Required, Which Is A Small Amount Psychologically. Over A Month, This Can Become A Nice Happy Significant Amount. The Second Is That You Are Actually Investing It.
2. Subconscious Investing - So If There Is A Way Of Investment Where You Are Subconsciously Investing, It's Not Pinching You That Much, But It Is Actually Growing At A Really Rapid Phase, Then That Is The Best Way To Think About Your Money. And That Is What I Wanted To See What Happens With Me. So If You Want To Round It Off To The Nearest 10, There Is A Formula In Excel Called CEILING, And We Will Try This. So In CEILING, I Will Say, Round Off 492, We Will Try To Round It Off To The Nearest 10, And Minus The Actual Amount. ₹8! So This Is ₹8. If I Do This In The Lower Cell. If We Round Off 3135, How Much Will We Get? ₹5! So You Made A Payment Of ₹3,000 But You Invested Only ₹5, So It Will Not Pinch At All. Same Thing With 6,750, But Since It Was Already 6,750, So After Rounding Off, It Came To Be Zero, So There Was No Investment. Then 4297, It Is Actually 4296.5, So You Will Actually Add 4 Here, And So On And So Forth. So I Will Take All Of This Down, Let's See What Happens. And If I Were To Do This, Its Sum At The End Of The Month Is ₹195! That's It! So The Expense Is ₹3,75,000. So I Spent ₹3,75,000 In A Month Which Includes My Home Loan And Everything, And I Invested ₹195.Now Clearly This Is Not The Right Way To Do It, In The Sense That If You Are Spending ₹4 Lakhs In A Month, Then Investing ₹200 Is Not Smart. But Here Is The Interesting Piece. This Amount Is Not Dependent On Your Expense, This Amount Is Dependent On How Many Expenses You Have? How Many Times Do You Spend? And To Prove This, I Actually Went To My Niece's Bank Account. She Is 18 Years Old, She Has Just Started Going To College. She Is Ruchi's Niece, So She Is My Niece As Well, So I Tried To Look At Her Expenses. And The Interesting Piece Was That Her Expenses Were Much Lesser Than Mine But Her Investment Amount Was Higher Than Mine. Why? Because She Was Making Multiple Purchases In A Day. To Prove That, Let's Do An Interesting Thing. Let's Make This ₹3,75,000 To ₹375, Meaning You Will Spend Only ₹375 In A Month. Of Course, That's Not How It Actually Works, But Let's Just See What Happens. So I Will Divide This Number By 1,000, And Let Me Just Do That, I Will Divide All These Things By 1000, And This Is What I Get. So, As You Will See, On 1st August I Spent Some Paise, ₹0.49, Let's Say I Bought A Toffee For 50 Paise, But I Rounded Off To 10 Because It Is More Than 0. Then I Spent ₹3, So I Have ₹7. Then I Spent ₹7, So I Have ₹3. Then I Spent ₹5 And I Have ₹5, So On And So Forth. The Monthly Expense Is ₹375. But The Investment Is ₹560. That Is The Beauty Of It. So The Amount Does Not Matter, The Number Of Transactions That You Do Matters. This Is Fascinating For Me. So When I Actually Did That For My Niece, Her Monthly Expense Was Around ₹4,000, But From That ₹4,000, Her Investment Round Off To The Nearest 10 Was ₹912. And That Was Interesting Because 912 Of 4,000 Is A Really Nice Happy Amount To Be Investing For Your Future.
3. Spending In Your 20s - And You In Your 20s Are Spending Like Crazy! Small Amounts, Ordering On Zomato And Swiggy, Uber And Ola, UPI To Someone, Buying Bread And Eggs At Shops If You Are Staying By Yourself As A Bachelor Or A Bachelorette, Or Giving Your School Fee, Or Your Rent, Or Some Other Expenses, The Expense Of Going Home, Expenses On Gifts And Books, There Are So Many Small Things That Are Happening That If You Were To Be Disciplined About This, You Can Actually Make A Fairly Good Sum Of Money As Your Investment Corpus Every Month. Now The Question Was, What To Do With This Corpus? Because If There Is A Way Where You Can Invest It In A Good Instrument, And You Actually Start Making Money,What Would Happen? Remember How I Started The Video? How Can You Make ₹100 To ₹27 Lakhs? It Was Sensational, Not The Truth, But This Is The Basis Of It. There Is One Stock, Actually Not One.
4. Returns On Your Investment - There Are Many Stocks But I Have A Favorite Stock Which I Often Mention, It Is Not An Indian Stock, It Is An International Stock. If You Would Invest ₹100 In That Stock Every Day, That Is ₹3,000 Every Month, Which Is Not A Big Amount Of Money, Nice Happy Sum Of Money. But If You Would Have Dedicatedly Invested ₹100 Every Day For 10 Years, Then In 10 Years Your Total Investment Amount Would Be ₹3,65,000, Which Is You Invested ₹100 For 365 Days, And You Did It For 10 Years, So 365 Into 1,000 Is 3,65,000. Do You Know How Much ₹3,65,000 Would Be After 10 Years If You Would Have Invested In That Stock? ₹27 Lakhs! So This Calculation Is The Foundation Of The Statement, How Can You Make ₹100 To ₹27 Lakhs? The Name Of The Stock Is,My Favorite Company, Google, And I Often Talk About It, And What I Am Really Happy About Is That Indmoney Has Made A Plan.
5. What Is Mini Save On IND Money - Of This Saving Structure Into A Product, They Call Mini Save. So To Prepare For This Video, I Sat With The Product Team Of Indmoney And Tried To Understand How Mini Save Works. What Are Its Risks And Benefits? I Want To Share All That With You So That If You Are Interested In This Product, Then You Can Get All The Knowledge That You Would Want. First Of All, What Is The Concept Of Mini Save? A Simple Concept That I Showed You On The Screen Is If You Round Off All Your Expenses To The Nearest 10, 20, 50, Or 100, That Makes A Corpus For You.And If There Is A Way By Which That Corpus Automatically Converts Into An Investment Mode, Then That's The Best. So Mini Save Does Precisely That. It Tracks Each And Every Transaction Of Yours, And Through That Tracking, It Calculates A Round-Off To The Nearest 10, 20, Whatever Is Your Choice. And It Waits For That Corpus To Become At Least ₹1,000. Till The Time It Doesn't Become 1,000, It Gives You A Savings Rate Of 3.5% Which Is What You Would Get In The Bank As Well If Your Money Would Be In The Bank. But As It Becomes ₹1,000, It Is Invested Into A Stock Or A Mutual Fund Equivalent In The US Market Which Is Called ETF, Of Your Choice. You Will Decide Where You Want To Invest, You Will Give The Permission, And They Will Then Invest It On Your Behalf. And That's How Over Several Years You Will Enjoy The Benefit Of 3 Things. Number 1: Investing In The US Market Which Is The Biggest Market In The World. The Companies There Are Global Companies, They Have Massive Markets, And If You Want To Invest In The US Stock Market, Then This Is A Great Way To Do It. By The Way, Through Indmoney You Can Invest In The US Stock Market Directly As Well, Just As I Do. So Basically What You Will Do Is, Determine The Number At Which You Want To Round Off Your Transactions, Then Give The Permission To Indmoney To Round Off The Money And Start Collecting It, And Then As Soon As It Is ₹1000, It Will Invest It According To Where You Want It To Invest. This Way, As I Said, You Will Be Able To Tap The US Stock Market. Number 2: You Will Be Able To Do This With Absolutely No Additional Cost To You, So It's Great Because There Are No Charges For Opening Your Bank Account, There Are No Charges To Facilitate The Transactions, There Are No Charges To Invest In The US Stock Market, All Of This Is At The Best Available Exchange Rates For You, So Why Wouldn't You Do That If You Want To Invest In The US Stock Market. And Then Number 3: As I Said Earlier, Not Now, The Best Thing About Investing In The US Stock Market Is That You Not Just Enjoy The Returns Of The Market, You Also Enjoy The Currency Appreciation Of The US Dollar Against India. So Every Year, You See That Your Stock Appreciates, But Along With It, You Also See The Appreciation Of The US Dollar, And That Gives You A Double Advantage Over A Return. I've Made A Lot Of Videos On The US Stock Markets, So You Can Check Them Out, So As To Understand How The US Stock Market Works, And Why Is It A Good Market To Consider, If You Have That Investment And The Discipline Of Investing. You Can Download The Indmoney App From The Link In The Description And Pinned Comment. And When You Transfer Funds In Your US Stock Account For The First Time, Then You Can Get Rs. 1,000 Worth Of Free Apple Stock. You Can See On The Screen How Mini Save Works.
6. How Does Investing Work With Mini Save - It Is A Very Simple, Nice Happy Way Of Investing Small Amounts Without You Actually Taking That Amount Out, So A Very Automated Way Of Investing Which I Believe Is A Very Smart Way Of Saving, And A Clever Hack That You Can Use For Your Benefit. Let's See How It Works. First Of All, You Will Have To Give First Of All, You Will Have To Give Permission To Indmoney To Track Your Transactions. There Is An RBI-Authorised Process Called AA Or Account Aggregator. Through That, You Give Permission To A Third Party To Track Your Bank Account Transactions. This Is A Very Very New Thing, So Sometimes There Are Failure Rates, They Are Not Tracked Properly, And So On. So Another Alternative Is SMS Tracking. Whenever You Use A Debit Card Or UPI, We Receive An SMS Which Is Again By Law, And Through That SMS, Any Third Party Can Track The Amount Of Your Transactions, And Thus Round It Off To Whatever You Have Decided, 10, 20, 50, Multiple So On. So You Will Have To Give This To Indmoney. If You Have An Android Phone, Then AA And SMS Tracking, Both Can Work. If You Have An Ios Phone, Then SMS Tracking Is Not Allowed, Only AA Can Be Allowed, And This Is How You Give Permission.You Can Withdraw This Permission At Any Time, So If At Any Point In Time You Feel Uncomfortable, Then You Can Always Do That. SMS Tracking Is Very Standard, The Second Thing Is KYC And Onboarding. Since You Want To Invest In The US, You Will Have To Go Through A Process Where Your Account In SBM Or State Bank Of Mauritius Will Be Opened, Your Account In Drivewealth Will Be Opened, KYC Will Be Required For That, That You Are A Bonafide Indian Citizen, And These Are Your Credentials, PAN Card, Blah Blah Blah. You Would Need To Do This To Invest In The Stock US Stock Market Anyway, So The Same Process Will Follow Here As Well. And Then The Third One Will Be The Auto-Pay Setup, Because You Will Give Permission To Indmoney To Withdraw Your Round-Off Amount Itself. That Permission, But That Is A Flexibility That You Have. Auto Pay Makes It Easier Because Then You Have To Remember Everything, And That Is The Beauty Of It, Because If Every Time You Will Have To Give That ₹192 Or ₹100, Then It Will Start Pinching, But If It Is Being Debited Automatically, Then All You Need To Do Is Just Track If They Are Debiting Properly Or Not, And It Works The Same Way. There Are Many Other Product Features To Be Launched That The Product Team Told Me About, This Is Just The Start, So I Encourage You To At Least Explore It On The App And See How It Works For You. It Is Important To Know The Risks. Number 1: You Are Giving Permission To Indmoney To Read Your SMS. As I Said, Technically They Should Only Read Your Transaction Smss, But If You Are Uncomfortable Doing That, Then You Will Have To Rely On AA Or Account Aggregator, And That Is A Bonafide Process, But There Is Somebody Who Will Be Reading Your Transactions, And You Need To Be Ok With That. With This, They Don't Get Any Exercise Of Control, So They Can't Do Anything About It. They Cannot Edit It, They Cannot Withdraw Money From Your Bank, Nothing Of That, But It Is Something That You Need To Be Concerned Or Aware Of. Number 2: You Would Be Investing In The US Stock Market, So As I Said, All Your US Stocks Would Not Be With Indmoney, They Would Do With Drivewealth. You Can Check Drivewealth On Its Site. It's A Bonafide Registered Entity, And It Insures Your Investments Up To 500,000K Or Half A Million Dollars, As Far As I Remember, As I Read When I Was Reading My T&C. So It Is That Insured Amount. Again, You Are The Authorized Controller Again, You Are The Authorized Controller Of Drivewealth, And Indmoney Has Got Nothing To Do With It. So God Forbid, If Anything Happens To Indmoney, Then Drivewealth Is Where Your Stocks Are, Your Etfs Are, And You Can Exercise Full Control. Similarly, SBM Where You Would Open Your Bank Account To Transact With The US Account, That Would Also Be In Your Jurisdiction And Control, And You Are The Owner Of That, So You Get To Run It The Way That You Want, Indmoney Is Just The Facilitator. The Third Risk Is Investing In The US Stock Market. Right Now, The Stock Market Is Really Down, And It Is A Great Time, In My Opinion, To Invest, Because Tech Stocks Are At A Very Good Price. The Same Thing That Happened In Roundabout 2008 When The Tech Bubble Burst, 2007 When The Financial Crisis Happened, 2015 When The Liquidity Crisis Happened, The Same Thing Is Happening Again In 2022, It's A Wonderful Time To Come Into The Market, At Least That's My Belief. 50% Of My Equity Investments Are In The US Stock Market, And I Like It That Way. Yes, It Is Down Right Now, Almost 40% Down! But I Am Very Certain That With My Regular Investments, The Ultimate Return After 10 Years Will Far Exceed What I Could Have Got Anywhere Else. If You Have Any Other Questions About The Product, Please Ask. It Is Your Right To Know Everything As A Consumer.
7. Conclusion - So I Will Request The Indmoney Team To Reply To Your Comments. I Am Not The Expert, They Are. Wanted To Share With You How Small Investments Can Help You To Build Huge Capital, Because The Hardest Thing That I Know You All Struggle With Is Not Understanding How Investing Works Is Not Understanding How Investing Works, It Is The Discipline Of Saving Money And Investing. And Through The Product Mini Save, You Can Actually Kick Start That Which Doesn't Pinch You, Which Doesn't Affect You, And Slowly And Gradually You Can Have A Huge Corpus. I Hope This Was Useful.
Karan Tiwari, Signing Off!