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Surbhi Followed Her Traveling Passion With Financial Freedom- Know About Her Journey

If we are quitting the job to follow our passion or become our own boss, we must measure the risk and reward also.

The youths are chalking their own path instead of walking down the footprints. The bar is being raised daily and a new risk is being taken to beat the standard.

“It’s the best time to be young here,” given the energy, the motivation, the environment and the government. However, we must be a little cautious that there is risk attached with every reward.  And this is where financial freedom comes into the picture.

Let’s start a small story of two young and motivated persons and how they started their journey with financial freedom.

Delhi based couple Nikhil Bhatia and Surbhi Bhalla decided to pursue their own interest for a living after spending a few years working for MNC’s. Being a Delhi University student, Nikhil clearly knew the demand generated near campus for street food. So he decided to start his own ‘food truck’ business in Delhi while Surbhi, a travel enthusiast, wanted to start a ‘millennials’ destination’ travel company.

A fresh start – This is a significant move for both of them and it puts financial uncertainty into the picture.

Nikhil after graduation entered into financial consulting and also holds a CFA. Since his college days, he was into markets and investments. After his job, he regularly invested 25% of his income monthly in the market with investment discipline. His expertise helped him take a little risk with equity investments. But he had a diverse portfolio with investment in mutual funds, debt funds, government bonds and health and insurance covers.

At the age of 29, when he decided to start his own business, he has a forward saving for the next 6-8 months of personal expense and also a lump sum amount to fund his new venture.

On the other hand, Surbhi did her MBA after graduation and entered into marketing. She was a travel enthusiast since her college days. She used to save a lot to fund her traveling expense in college and she kept this habit always. Now she has sufficient amount of savings to fund her dream project.

Both have little savings in hand before taking a big step because they have already planned it since they entered the job market.

At this juncture they can confidently pursue their dreams. Our only piece of advise- there is always a risk attached to every new step you take, but you can spread the risk and minimise the impact by planning for your goals be it financially or strategically.

And we wish “do your best” to every person out there, who dreams big.

MY PLAN

Name: Nikhil Bhatia
Age: 29
Business: Food-truck

Name: Surbhi Bhalla
Age: 28
Business: Travel Destination Company

 

Make It Big With DOSA Stall- How To Start One?

Street food stalls are very popular in India. Let’s explore the unorganized market to unearth the hidden revenue and cost associated with it.

There is a popular saying- “India runs on street food.” It can be a great source of second income for both students and working professionals.  One can start a street food stall with a small investment and little time management. It also has low operational cost with little risk but generates a huge demand from youths.

Let me introduce you to one such street food item- DOSA served with coconut chutney and sambhar as a healthy morning breakfast or crisp evening snack. The beloved DOSA has a special price theory called “dosanomics” given by our ex-governor Dr. Raghuram G. Rajan.

DOSANOMICS

Let’s look at the feasibility of running a DOSA stall as an alternative investment apart from the stock market, gold, real estate, etc.

Street food stalls in our metro cities are usually run by migrant people. We can easily find a group of 2-3 people in search of jobs and can help them set up a DOSA stall with some investment.

 

 

Metro Cities

Tier II

Investment (fixed cost)

35k-50k

30k-40k

Daily Sales (less in initial days)*

8k-12k

6k-9k

 

Daily Cost (Goods + 3 Staff salary)

5k-7.6k

3k-5.5k

Weekly settlement for place

3k-4k

1.5k-2k

Risk factor
(municipality +Location + seasonal change)

10% of sales

10% of sales

Daily Profit
(less in initial month, usually increases with the second month)
 

2k-4k

 

1.5k-3k

The above Profit and loss breakages are good enough to analyze an investment.  If we compare it with market investment, we may think that it’s a bit risky and time-consuming. But believe me, if you are good at managing time and people, this would generate money, good-will and lifetime local contacts for you. Second options are real estate and gold, which I personally find bogus and boring investments.

The youth of India thinks out-of-box, therefore invest out-of-box.

*Data is taken from the Scroll.in Daily Economics video report on running a DOSA stall.

The power of 500- The real Independence

The first and the most important target is to make everyone understand that why Investing just 500 bucks a month can have a major impact on our life and the future we’ll have.

INVEST 500

Let us first understand the value of 500 bucks. In reality, 500 matters a lot, maybe not to some. Try to earn your first 500 rupees and you’ll understand the work required to earn it. Mathematically, it is just approx 17 rupees per day(lesser than a packet of juice or convenience fee we pay while booking movie tickets).

How can we achieve Independence with such a small amount of money. Why we are asking you to start with lesser is because you may have trust issues or some other priorities and goals to fulfill.

Here are some screenshots to give some idea about the same:

When 500 bucks are put into SIP(monthly) for 10 years.

 

WhatsApp Image 2017-08-15 at 12.19.14

 

When 500 bucks are put into SIP(monthly) for 20 years.

 

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When 500 bucks are put into SIP(monthly) for 30 years.

 

WhatsApp Image 2017-08-15 at 12.19.11

 

When 500 bucks are put into SIP(monthly) for 40 years.

 

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When 500 bucks are put into SIP(monthly) for 45 years.

 

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When 500 bucks are put into SIP(monthly) for 50 years.

 

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Now see the difference of amount invested and the return we got.

Here, the SIP was for 10 years, 500 bucks monthly.

 

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Here, the SIP was for 40 years, 500 bucks monthly.

 

WhatsApp Image 2017-08-15 at 12.19.01

 

This is not a magic, its 8th wonder of the world, The Power of Compounding.

 

Further we’ll show you the difference between the returns you get, if the rate of return is about 15%.

 

When 500 bucks are put into SIP(monthly) for 10 years.

 

WhatsApp Image 2017-08-15 at 12.19.07 (1)

 

When 500 bucks are put into SIP(monthly) for 20 years.

 

WhatsApp Image 2017-08-15 at 12.19.07

 

When 500 bucks are put into SIP(monthly) for 30 years.

 

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When 500 bucks are put into SIP(monthly) for 40 years.

 

WhatsApp Image 2017-08-15 at 12.19.04 (1)

 

When 500 bucks are put into SIP(monthly) for 45 years.

 

WhatsApp Image 2017-08-15 at 12.19.04

 

When 500 bucks are put into SIP(monthly) for 50 years.

 

WhatsApp Image 2017-08-15 at 12.19.03

 

Here, we can see that if returns are just higher by 3%, what difference it can create.

 

Example: If we look at the returns for the period of 40 years, the difference is about 1 crores.

 

FAQs

1. Why 12% and 15%? Is it possible.

Answer: The average of SIPs in equity mutual fund is 12 to 14% in large cap(established companies) funds. 15% is for people who can take extra risk by investing in micro cap(small and emerging) funds.

2. Why the time is so long?

Answer: Just put 500 bucks a month, we are not asking you to put all your savings in this, and you’ll feel the difference.

 

Suggestions

Please start SIPs for the new borns or young ones in your family and spread the awareness.

 

her well being is his happiness, her smile is his aim.