Whether Demonetization was able to do the needful or it failed in its purpose, is a separate question altogether. Amidst the high profile debates propounded by the Democratic league, we the common man, have our own set of experiences and memories, good and bad, associated with NoteBandi. This chaotic phase has delivered many financial lessons for the common Indian man. So, this article focuses on what did we learn during this one year, and how the lessons can be helpful in managing our finances better.

Don't keep cash at home: The biggest lesson that Demonetization has taught us is 'Do no hoard Cash'. Money lying idle in your cupboards can have serious repercussions like:

• The cash is vulnerable to being stolen.
• The money is gradually diminishing in value. The termite, inflation is slowly nipping it away inch by inch.

Why do you want to handle so much cash after all? If you already had cash in your banks, there was no need to affix yourself to the queue, anterior to the banks on 9th November 2016 and onwards.

And this is applicable to both households as well as businessmen. The latter who deal in cash are also subject to the above side effects.

So, the first step of action is if you still have cash lying at your places, go and deposit the same in your bank account.

Secondly, invest that cash, apart from a little emergency money for your near term cash requirements, so as to shield your money from the inflation attack.

Digitization: Another wind of change that Demonetization has brought in the way we live is the embracement of technology. And the scale at which it has made it's way into our lives is noteworthy. Post the NoteBandi, people were not left with an option but to use digital means for their everyday transactions. Such was the plight that even the sabjiwala's and the small grocery stores, started accepting payments through digital wallets and got their own card machines. Although the cashless phase has passed, yet their machines and wallet codes are in tact and the number of transactions are on the increase.

Demonetization has broken many apprehensions related to Digitization, people who didn't even have a debit card now use wallets and UPI App for buying groceries.

It was witnessed that those who were comfortable with technology a year ago, were better off than those to whom technology was alien. Furthermore, we should start adopting technology:

• For our own good, because of the unmatched convenience and safety it offers.
• And, the government's intentions with respect to its penetration are clear, so the future will be majorly digital, so the sooner we adopt technology, the better it will be.

Tax Planning: Post Demonetization, those who had huge chunks of unreported income, suffered dire consequences. Those who deposited more than Rs 2 Lacs in their accounts had to report this deposit separately in their tax returns. Those who fumbled in filing returns previously found themselves in a hapless situation. There were series of scrutinies and raids conducted in people's homes and offices for not contributing their share to the economy. On the whole, Demonetization clearly conveyed the message, Be honest and file your returns in time.

And why should you evade taxes, when there are multiple methods to legally avoid them. Consult your advisor and invest in a range of products which can help you save a lot of taxes.

So, the above were the lessons which we can learn from the ripples created post Demonetization. Effective implementation of these learnings into our finances can make our lives easier in the long run.

This article is for the ones who fall in the above category. We have listed some tips which can help you in trimming your expenditure, without causing much pain.

Concentrate on Essentials: This is about a girl Nimrat, from Kolkata who moved to Gurgaon for pursuing higher studies in July last year. Four months passed, and winters had set in. Delhi unlike Kolkata, is chilly during winters, so Nimrat asked her dad to transfer her money so that she could buy some warm clothes. Next day she got the money and went to Ambience mall with her roommate to buy winterwear. As soon as she entered, on her right was Zara, on her left was Diesel followed by her favourites, M&S, Bobbi Brown, Mango, Promod, and a number of other brands, all inviting her to splurge. Nimrat couln't resist the bait and soon was rattling in the trap. She spent her money on a ripped jeans, a cocktail gown, and a skimpy top and none of this was going to warm her up during the freezing temperatures. Nimrat wasn't left with a choice but to borrow from her roommate for her “essentials” shopping.

This anecdote intends to convey, prioritize your needs, spend on the necessities, because if you prioritize luxuries, you might end up in in a difficult situation for fulfilling your basic needs later.

Keep your cards at home: A very simple yet effective technique of actualizing shopping within budget is, keep your plastics at home when you go for shopping. Envisage the amount that you'll be needing and keep only that amount in your pocket (keep a margin of 10-20%). So when you go out, you'll concentrate on necessities only as there is no money to pay for impulsive purchases.

Wait for sale: Don't spend Rs 1000 on a t-shirt which you can get for Rs 500, 2 months later. All brands put their stock on sale at least 2-3 times a year with discounts ranging from 30-70%. Nowadays the frequency of sale has increased on e-commerce website, they put a sale almost every month. Don't be an impulsive shopper, commit to yourself that you'll shop only during sale and save a lot of extra bucks. Having said that, it is also important to note that offers, discounts and sale on e-comm websites and malls will try to lure you into buying stuff you don't need, extra 25% on orders above 1,499, 1+1 only for the next 2 hours, buy 2 get 3 and the like. Don't be a victim of such gimmicks, and buy only what you need.

A sane shopping partner: If your shopping mate let's you buy overpriced or unwanted things, then you need to break up with him/her and look for a sane one. Your shopping partner plays a very important role in controlling your urge to splurge and help you save money. So have a shopping partner who is prudent, values money, decisive and is fun to be with.

Shopping is not a stress reliever: When the whole world looks grey, shopping looks pink, and that's why many distressed souls seek joy amidst stacks of goodies confined in the flamboyant glass walls of the shopping mall. It's a general belief that shopping alleviates sadness and you tend to buy things that you do not need, do not want, and most importantly can't afford. This tendency is generally labeled as Retail Therapy. It sounds good as far as it's a marketing ploy, but when it's practiced by us during our lows, it doesn't remain good any longer. Using shopping as a means to relieve our stress time after time, can turn out to be catastrophic for our finances. There are economical ways to lift your spirits, go for a walk, call up a long lost friend, go and have an ice cream, these things will soothe your mood without affecting your pocket.

Sell the stuff you don't need: Most shopaholics' homes are filled with stuff which they have never used or will not use in the future. This is the stuff that you need to get rid off as soon as possible, sell it off and the money you get can help you in sponsoring things or experiences which are of a higher importance. You can save this money, invest it for your future and feel proud of the fact that you made wealth from waste.

The above are a few steps which can aid you in controlling your urge to splurge. This piece does not encourage you to become a miser, rather become frugal, a prudent shopper, because there's no harm in shopping but going overboard is as deadly as gambling your hard earned money in a casino. Saving money won't bring in pain, you need a little presence of mind, a clear vision and some creativity to save yourself from a lot of future pain.

For those who may choose to not see the lights may be left searching for answers. So let us bathe ourselves on in light of these priceless words said by the masters. To keep things simple, we are only listing the most important ones for our readers.

Investor behaviour has been a subject of deep study with many authors and finance experts reflecting their opinions on it. As is most commonly seen, investor behaviour often deviates from rational and reason. The individual personality traits matter a lot while decision making, often complicating them. The personality is subject to influences, ego and emotions like impatience, fear, greed and hope.

These factors often cloud the facts for decisions which end up being judgmental and biased resulting into wrong decisions. This famous statement by Graham rightly highlights this point.

There is another way at looking at this. As smart investors, we should look to allocated most money to the best ideas or assets that have potential to deliver the highest. At the same time, we should also ensure that our mistakes are not so costly that they harm our wealth noticeably. It is also a pointer to how most of us view and manage our portfolio which are often heavily skewed in favour of fixed income /debt products /physical assets, etc. even though our risk profile may permit a far more balanced asset allocation.

Most of us have a small exposure to equities when we consider our total portfolio but still are most worried about it on a daily basis. Given this mindset, in the context of the quote, we must question ourselves: what are the “costs” and “profits” of what we are doing with our overall portfolio? We should stop worrying about a small portion of our wealth in say equities and instead look at the big picture. Let us focus on diluting those debt products for short term needs and lets give adequate time to equities to give compounded returns in long term. The sooner we reflect upon George's wisdom in our lives, the better will it be for our own wealth creation goal.

Warren had the skill of telling the most important things in the most simple way. This quote and many others similar, shows Warren's belief that that wealth creation was not a forte for the intelligent but for the disciplined. Anyone of us can be wealthy in our lives and it can be done provided we do few important things in our lives and not do the wrong things. This is clearly in reference to how investors approach their wealth /portfolio management wherein we try to time the markets not realising that it is staying invested for long term that really helps create wealth. If we add all the costs of all the wrong decisions, market timings, etc. done in past by us, put together, they would most likely amount to lots of lost wealth.

The important principles of starting early, investing regularly and right asset class ('equities') ought to be highlighted here. These are the right things that we all should aim for. We need not be scientists or finance experts or even literate to follow these principles to be truly wealthy.

Much success can be attributed to inactivity. Most investors cannot resist the temptation to constantly buy and sell.
- Warren Buffet

You won't mind us quoting Warren here again. It is probably one of the greatest mysterious wherein on one hand almost all investors idolise Warren but on the other hand, most of us do not truly follow his wisdom and advice. One of the most often quoted advice /wisdom from Warren is about how we can really create wealth in long term. It is about buying into good businesses and holding them for a very long term without worrying about what happens tomorrow. The above quote clearly reflects how most of us are often worried about short term movements while the true need of the hour is to keep invested for the long term and being passive. Investors have to believe that, if they are investing for long term for say 7-10+ years, short term movements do not really matter. “Stop trying to predict the direction of the stock market, the economy or elections” he says while attributing patience and long term holdings as among the most important factors behind his success.

In brief..
Keeping in mind the spirit of this article, we have only given only four essential quotes though we could have easily added a few more. The idea was to keep the focus on the essential part and not flirt with other less important things. The wisdom from the above quotes focusses on the key essentials – managing investor behaviour, looking at the bigger picture, doing the right things and then having patience to let investments deliver. Out together, these ideas take form as the basic principles, a guiding light on path to becoming rich. And there is really nothing more that we should add to it.

Your salary provides you the mechanism to meet your everyday needs, and any surplus is your saving which provide a means to meet your future needs.

It is a general opinion that people who earn more are rich today and will have a richer and brighter tomorrow. Not necessary. Because if that was the case, Vijay Mallya wouldn't be where he is today. There are cases of so many rich people in India and around the globe, who eventually filed for insolvency in the past. All thanks to mismanagement of money. Many people are making enormous money, but how many of them die a multimillionaire. Not many. Because they might be getting a lavish paycheck, but matched by an equally lavish lifestyle, and before realizing that entire money is gone in a flash. A salary with a large number of zeros at the end won't make you wealthy, how well you treat your salary certainly does.

• You don't have to spend all your salary: After ploughing through for a full month 10-7 each day, you get your salary, you feel you slogged for it and you deserve to spend it the way you want to. You do deserve the money, no second thoughts, but spending do need some serious consideration. You have to save a fraction of your income to ensure that you don't run out of money when there is none coming. This fraction determines your spending and not the other way round, meaning, if you get a salary of Rs 40,000, you spend Rs 35,000, Rs 5,000 is your saving, next month you spend Rs 39,000, your saving is Rs 1,000, some month you'll spend the entire 40, another month you'll spend 44, the extra 4 is on your credit card. Can you feel the clutter? It is because this is not how it works. So let's unclutter it a bit, your salary is fixed, Rs 40,000, let's fix your savings too at Rs 15,000. So each month salary 40,000, saving 15,000, spending you have to manage within 25,000. This Rs 15,000 each month, put in the right direction will make you wealthy in the long run.

• The salary shouldn't be lying in your salary account: Dear Customer, your account is credited with Rs XXXXX on 1-Jul-17, salary for the month of June 2017. You spend from this account over the month, there is some surplus in the account, then again next month you get the same message, and this continues, month over month and year over year. Many salaried people have lakhs of rupees resting @ 4% in their saving accounts from the money thus accumulated. Your savings are dying a slow death this way, when they have the potential to grow at double or triple this number, so why are they not exploring better options, why are they not living to the fullest?

• Save Tax: Paying tax pinches, because a substantial chunk of your salary, you have to give to the government. And the irony is, taxes are directly proportional to your income, the higher the salary, the higher the tax. You are earning to live your dreams and not to pay 30% as tax. If you can alleviate your tax liability (legally), so why not. Therefore, your investment list must have tax saving at the top. Investing in tax savers will increase your net income as well as will get you a decent return on your investment. When you invest Rs 1.5 Lacs in a tax saving instrument, you save Rs 45,000 (taxes saved assuming 30% slab) + 12,000 (Return from your investment, assuming 8% fixed return), a total of Rs. 57,000.

• A salary increase = A savings increase: The general reflex action to a pay raise is we fall prey to the consumption instinct. When your salary increases, the need to splurge increase, a wage hike proportionately increases the standard of living. And a dominant part of the additional expenditure is on stuff that we can easily do without. Ideally, when your income increases, your saving & investment must also increase in a similar proportion. This will make sure that your investments are able to catch up with your escalated lifestyle.

The above thought-points form the protocol for a productive management of your salary, and if followed religiously can create magic. Money management has to be pursued at all times, irrespective of which end of the hierarchy you are at, the bottom most or the topmost, because building wealth is a lifetime goal.

“Your salary gives you a start, the end is a wealthy you.”