5 Modern Money Traps that will make us POOR in 2024 – The AssetYogi Show #11

"Aamdani Atthanni Kharcha Rupaiya" This movie was released in 2001 by Govinda But even after 23 years, this quote seems relatable According to a survey by Deloitte, more than 50% of millennials and Gen Z are living paycheck to paycheck That means there are no savings Naturally, this causes financial stress Now, the lack of savings can also be the reason for our habits The struggles of our generation are different from that of our parents' generation In this episode, we will see 5 such modern mon

ey traps which are making the young generation poor And how can we escape these traps and create wealth in the long term Namaskar! I am Mukul Malik and you are watching The Asset Yogi Show Before starting the video, let me tell you that our app is coming My team and I believe that investing through this app will be very simple For the app, you can sign up for discounts and early access You will find the link in the description below Our first money trap is today's consumerism All the companies a

nd brands work to attract us Produce new products Along with that, we create FOMO Fear of Missing Out We see influencers on social media We see celebrities We also see our friends and their lifestyle We try to copy that If everyone is buying an iPhone, we also want an iPhone If people are going in fast fashion Like people go to Zara, H&M They want to buy new clothes People want to buy new expensive sneakers So what is all this? This is consumerism I am not saying that we should not do any work T

hat is, we should not buy phones or clothes But the point is, we should not give in to consumerism Now how can we control all these things? Of course, we will see all these learnings in the end Along with this, we get a lot of discounts Zomato and Swiggy They are behind us that we should eat a lot Obviously, in order to take that discount We are increasing our cholesterol and sugar level Similarly, Flipkart, Amazon We get sales all over the world So should we buy a lot of things whenever we see

sales? Maybe not Now here comes our second money trap Spending without budgeting That is, without any budget We either want to buy something or actually buy it Here we can also take an example Now many people want to buy good phones Someone wants to buy a phone worth 1 lakh But the salary is only 50,000 rupees So should he buy that phone? Maybe not The income is 50,000 rupees We want to buy a car for 10 lakh rupees Does it come in our budget? Maybe we haven't thought about it Have we made any bu

dget to buy all these things? Whenever we buy something It is important to assess our income How much do we spend? Now we have to pay our rent We have to bring groceries Internet, electricity, water We have to pay all the bills Have we taken all their budgets aside? After that we planned for this expense Maybe we are missing this type of budgeting How should we do budgeting? We will talk about this soon Third big money trap Excessive credit Now if we look at the generation of our parents When di

d they take loans or credit? To buy a house, to buy a car Maybe to marry someone Or for higher education students They used to take loans for that They used to come under all the urgent requirements But if we look at today's date From electronic gadgets to clothes, jeans Everything is sold on credit So should we take this credit? No cost EMI has come Schemes like buy now pay later have come In which interest is so much charged Because of this we get trapped in debt trap On credit card we buy thi

ngs to match up with people But then we forget that we have to return that money Once by mistake our default is done Interest begins to be imposed on that default Those payments keep increasing To make one payment we take another credit or another loan In this way we get trapped in debt trap It becomes very difficult to get out of it So we have to say no to this excessive credit How? Obviously, let's discuss Fourth big money trap comes Considering parents money as own money Understand carefully

what I want to say here In our parents generation They saw a lot of struggles Saw some scams Saw stock market scam Like Harshad Mehta scam, Ketan Parekh scam Although they did not invest much in stock markets But they built their own house They bought their car They did savings They got their children married They provided their children higher education Because of these struggles They got some financial discipline Obviously we can learn something from our parents generation And we should not ta

ke their money for granted Of course there are some pros and cons Advantage is that If our parents have already built a house for us They have savings Then we have a fallback option We can take some risk We can try entrepreneurship We can try a new project But along with this there is a big disadvantage If we are not trying any project We are not trying entrepreneurship And we are not saving We are spending all our money We are going on vacation We are buying new clothes and gadgets Our savings

are getting zero So what will happen? Our financial discipline is getting spoiled First of all we are getting used to spending a lot Second, we are increasing our lifestyle by spending a lot We might not be able to sustain that much in the future Our liabilities also increase in the future If we get married If we have kids in the future Will we be able to give them a good lifestyle Which we are taking for ourselves today So the point is Is the amount we are spending sustainable? And should we co

nsider our parents' money as our own? This is my question to you Do answer this question The fifth big money trap Ignoring personal finance and investing Now as we talk about personal finance and investing Generally people try to make quick money People invest in cryptocurrencies in the name of investing They invest in penny stocks that money might be made soon People do not understand the difference between trading and investing As we talk about the stock market Trading comes to mind first Peop

le start talking about technical charts But in investing, there is a higher probability of money being made In trading If you look at any data in India or all over world 90% of the people lose money Whether they are trading directly in stocks Or they are trading in their futures and options Most people lose money But you will see Most people who do passive investing Invest in mutual funds Or do active investing in stock markets The probability of making money in the long term is very high So we

have to pay more attention to this probability Instead of investing in quick rich schemes Then personal finance does not end here Apart from this, there are many aspects Like loan management We should not take high interest loans Default should never be done on the credit card The interest rate is so high there Taxes should be known How can we optimize our taxes maximum How should we maximize our savings How should we maximize investments How can we maximize the returns we get from them Of cours

e, it will take a lot of learning Now let's talk about How can we escape from all these money traps? The first point is We have to understand the difference between needs and wants Needs means the needs Which we have to spend anyhow For example, if we live in a house Then we have to pay the rent But now that house should be only according to our needs If we want to live in a big house Then it will go in our want That's why we will put all our needs in needs Obviously, we have to see what categor

ies we want to categorize in needs Now rent can be one of them We have to buy groceries That will be our need Then the internet bill, water bill, electricity bill All these expenses go into our needs Or the school fees of the children These are all part of the needs Then comes our wants Wants are actually our desires Which we don't need so much But we want to do that work For example, we want to buy a good phone We want to go on a vacation immediately Or we want to buy a good car All these come

into our wants So once we categorize these needs and wants Then we can plan those expenses well How can we plan this? Here comes our second point Here we can follow 50-30-20 rules In fact, I have talked about this in many of my videos and episodes We can summarize 50-30-20 rules If our total income is 100 rupees We can allocate 50% for needs We can allocate 30% for our wants Then the remaining 20% We should definitely save And invest that money for the future So that we can carry forward our goo

d lifestyle According to all these budgets in the future So the overall point is We have to take our money seriously In fact, in India, we call it Laxmi We have to respect it Third point We have to upgrade our skills If we are doing any work We have to do our best Whatever best skills we need Whatever latest technology is coming We have to learn to upgrade ourselves Here Warren Buffett says We are our best investment If we invest on ourselves We get the most returns We can get infinite returns I

f we acquire some skills after watching a YouTube video And we make any returns from it We didn't make any investment So we can get infinite returns Fourth point Good debt vs bad debt We should know For what we should take a loan Or we should not take a loan What can be an example of good debt? If we have to take a loan for our urgent requirements or needs Then it can be a good debt For example, if we have to go to work daily And we have to reach early Then a vehicle can help us Any vehicle can

be helpful So if we have to take a loan for our house or car Then it can be in the category of good debt But at the same time, If we want a big car And it is going beyond our budget Then it will be in the category of want And if we take a debt for our want Then it can be a bad debt Similarly, if we want to fund our luxuries That too from debt Then it comes in the category of bad debt For example, if we go on a vacation We want to buy an expensive phone And we are taking all this on credit Then i

t comes in the category of bad debt So here we can take good debt And we should definitely avoid bad debt Fifth point Buy luxuries if you can pay upfront i.e, if we cannot buy a luxury upfront, Then we should not buy that Then obviously we won't have to take debt i.e, if we cannot take out money for expensive clothes or a foreign vacation, then we should not go for it We can go for that when we'll be able to afford it Sixth point Learn finance and investing We need to track our money regularly T

hat is, how much we earn every month How much we spend, i.e, spent on needs How much money we want to allocate towards wants Then finally How much money we want to invest Where should we do that Which investment will give us how much return? How is our maximum tax being optimized? Why don't we finish all those loans first We should try to finish the high-interest loan first So learning all these things are very important Seventh point Have a long term view Whenever we talk about making money fro

m investing It is very important to have a long term view We need to learn patience You can see all these good investors They have made good wealth in the long term We can see international examples like Warren Buffet, Peter Lynch We can see examples in India too Mr Raamdeo Agrawal, Mr Vijay Kedia, Mr Ashish Kacholia You can see many examples of such investors But you can also see That there is not much money made from trading There is not much money made in the long term So we need to different

iate between trading and investing And we need to have a long term view And I think if we can implement all these steps In our life Then all the 5 money traps we talked about We can definitely get rid of them Along with our present, Our future can also be good Now you can ask your questions Related to this topic in the comment section below We will definitely try to cover them In YouTube Shots and Instagram Reels Like and share this video With your friends and family members I am sure they will

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