Here, I would like to share my success story which derived from an excellent monthly budgeting and savings habit. The budgeting I have made to control my unnecessary monthly expenses but calculated as a weekly basis, and identify any possible savings
from such budgeted amount. I have succeeded with this task in a high degree and the result of this is, my kid is now an owner of the stocks of an excellent Indian company.
Of course, she has little number of shares but, she is going to keep the same for next 20 years. I am confident, while selecting this stock to purchase for her, I haven’t failed with any selection criteria to identify the possible wealth creation ability of this company for a long run and sure, it will give her enormous profit later.
Here are the steps I went through to achieve my goal, is for your better knowledge and possible practice:
My initial step was identifying my exact monthly expenses. Next two months I had worked very hard to find out the exact amount, by tracking all necessary and possible miscellaneous expenses. I have finally found my required monthly expense amount is Rs. 7200/-. (Remember, whatever the currency is, but, budgeting is the main point here.)
Second step was, dividing the amount for each week in a month. Thus I have found I required Rs. 1800 for each week.
Third step, I was withdrawing required money for that week from my Bank ATM at the beginning of each week.
Fourth step, in the end of each week, I have added all the surplus amount remaining from that week’s expense to a separate bank account (that well connected to my online trading account). Yes, I am proud to say that, this was my regular practice before taking the next week’s expense (Rs. 1800) from the ATM.
Fifth step, I have continue this last one and half year and found such earned balance from my each weeks remaining money was enough to buy a considerable number shares of a very good company.
Sixth step, I have brought shares of the company at a time when I thought it was good to buy in the sense of price and instead of keeping the same in my trading account as dematerialized format, I convert the same to the physical format (certificate format). I have then presented this certificate to my little one and now it is with her personal file (of course, we the parents keeping the file for her because she is only 2 years old now)
Finally, there is nothing. The process completed in a well structured and disciplined manner. The share certificate is there in her folder for next 20 years.
This is my success story. I am still following the same and will follow in the future too. If you have such success stories or any plans, feel free to inform me and that will be a great experience for my readers.