Brief Summary
Rishabh Jain from Labour Law Advisor shares ten personal rules he follows to avoid unnecessary expenses and build wealth. He emphasizes the importance of conscious spending, investing wisely, and avoiding lifestyle inflation. The core principles include resisting the urge to buy the latest gadgets, investing only in what you understand, avoiding branded clothing, being practical about car ownership, prioritizing financial freedom over homeownership, avoiding detrimental habits, questioning the value of expensive jewelry, being selective about club memberships, avoiding impulse purchases, and opting for digital books. He also shares three bonus tips on saving money on everyday expenses.
- Avoid buying new versions of gadgets unless necessary, opting for previous versions.
- Invest only in asset classes you understand well.
- Avoid branded clothes and focus on good quality, basic apparel.
- Consider a car a depreciating asset and buy only what you need or buy it secondhand.
- Renting a home provides financial freedom and flexibility.
- Avoid habits that don't contribute to personal growth.
- Question the value and practicality of expensive jewelry.
- Be selective about club memberships and their associated costs.
- Avoid impulse purchases and stick to a shopping list.
- Prefer digital books over physical copies to save money and space.
Introduction
Rishabh Jain introduces the topic of the video, which is about ten things he doesn't buy and the reasons behind those choices. He highlights that buying new things often provides only temporary happiness and can negatively impact long-term financial well-being. He aims to share insights gained from his experiences in business and finance over the past 11 years, hoping to offer viewers a new perspective on spending and wealth accumulation.
Item 1
Rishabh avoids buying the newest versions of gadgets, like smartphones, unless absolutely necessary for his work as a content creator. He prefers to buy previous versions of gadgets because they offer similar features at a significantly lower price. He illustrates this point with the example of the Samsung S24, which lost nearly 50% of its value within a year of its launch.
Item 2
Rishabh emphasizes the importance of investing only in asset classes that you understand well. He personally invests in mutual funds and managed portfolios for equity exposure, rather than buying stocks directly, because he lacks the time and expertise for individual stock analysis. While optimistic about crypto, he refrains from investing in it due to a lack of understanding. He suggests choosing simple investment instruments like Recurring Deposits (RDs) for those who are not familiar with complex asset classes. He also introduces Stable Money app, where you can start RD by comparing rates of different banks with DICGC insurance of Rs 5 lakh.
Item 3
Rishabh avoids purchasing branded clothes, as he believes that a significant portion of the cost goes towards the brand name rather than the quality, material, or fit of the clothing. He prefers to buy good quality, well-fitted, basic clothes in single colors from a fixed shop in Jodhpur that sells export surplus goods, typically spending no more than ₹1500 on an item. He also avoids printed or graphic t-shirts because they become boring after a few wears.
Item 4
Rishabh views cars as rapidly depreciating assets and avoids buying expensive ones. He only purchased a car in 2022 when it became necessary for dropping his daughter off at school, choosing the cheapest option that met his requirements. He suggests that those who desire expensive cars for specific needs like off-roading should consider buying them secondhand to save money.
Item 5
Rishabh rents the house he lives in, despite owning other real estate investments. His rent is less than 3% of the property's price, which he considers a good deal. He values the freedom and flexibility that comes with renting, as it allows him to easily move or change his living situation without being tied down by a mortgage or the responsibilities of homeownership.
Item 6
Rishabh avoids developing habits that do not contribute to his personal improvement or growth. While he has healthy addictions like consuming protein, playing sports, and attending jamming sessions, he avoids unnecessary habits like drinking Coke daily or smoking cigarettes. He highlights the financial impact of these small daily expenses, which can compound to significant amounts over time.
Item 7
Rishabh is reluctant to buy expensive jewelry for his wife, citing an incident where a bracelet was lost and the stress it caused. He points out that jewelry is typically worn only on special occasions, making the cost per wear very high. He also mentions the trouble of taking care of it, keeping it safe, and maintaining it. Instead, he prefers to spend money on experiences like vacations.
Item 8
Rishabh questions the value of expensive club memberships, arguing that he can access similar facilities and activities at a lower cost through other means. He also notes that clubs often promote unhealthy habits like excessive alcohol consumption. He prefers to avoid restricting himself to a particular travel club and instead chooses vacations based on his interests and financial situation at the time.
Item 9
Rishabh avoids impulse purchases and sticks to a shopping list when going to the market. He is wary of "buy two get one free" offers and add-ons offered by retailers and online stores, always unticking unnecessary options like extended warranties.
Item 10
Rishabh has reduced his purchase of physical books to almost zero, preferring to listen to audiobooks on Audible or read digital versions on Kindle. He only buys physical copies of books that he wants to read repeatedly or use for casual reading and marking.
3 Bonus tips
Rishabh shares three bonus tips for saving money: he asks for plain water instead of bottled water at restaurants, unticks the travel insurance option when booking train tickets on IRCTC, and unticks the donation option on online shopping portals, preferring to donate directly to charities.
