First of all let me clarify myself. When I say ‘Always! Listen to your Dad’, I mean listen to what he means. You will always find wisdom in that. I agree world is changing at fast pace so a lot things might be outdated but still wisdom behind them is most valuable. Wisdom will take lot of time and effort to earn and here your are getting it for free.

I still remember when I started my first job. My father made sure all my loans are paid so I don’t need to worry about them. At the same time, he always tried to convince me to buy a house. I like every 23 year old wanted to be independent and didn’t want to take an effort of finding a house, taking a loan, etc.

Later one day after I bought the house (Just so that he will be happy), I asked him why really he wanted me to buy a house which I might not use. Then he told me, it’s not the house but it’s about savings. With 40% of my salary going towards house EMI, my expenses went down, I became more responsible and built wealth in form of a house. It took me 4 years to understand this.

Buying a house might not be the best way to be disciplined about your savings. There are number of ways to do it.  Let me try to provide other ways to you. First of all, you will need a separate account for savings (which is really your saving account).

  1. Make simple goals for yourself to achieve like ‘Save 1 lac in next 6 months’ and save when every you think saving
  2. Start with saving 10% of your salary on the day you get your salary
  3. Every time you go frivolous spending do equal amount in savings
  4. Decide a minimum balance for yourself and at end of each month transfer all amount over and above minimum balance to your other saving account.

You can try different combination of above. If you put in bit of effort in saving you will surely have secured future.

Another thing he used to say is “It’s very difficult to reduce your expenses but if you start saving early you will not reach that situation where you have to….ever”. He wanted me to make “savings” a habit.

So, listen to your Dad!