Dipesh Majumdar

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Rupees Fifty Scheme

New Year is round the corner and it is time to make resolutions, promises and set new goals. It is a cliche to hear that all new year resolutions lose their steam in a couple of months. As a result few people actually make resolutions.

One of the tricks is to start with a small goal and make it repititive for 365 days. A commitment is needed though. Nothing comes for free.

What I am going to illustrate now is a very simple act of saving. All you need is a separate bank account and a zero balance to start with. We call this RFSA (Rupees Fifty scheme Account). You are now all set to start your Rs. 50 scheme. Well if you earn in Dollar, then just replace Rs. with Dollar. So it becomes DFSA (Dollar 50 scheme account).

We spend our money mindlessly on cigarettes, chewing gums, tea, coffee and you name it. So can we not afford Rs. 50 to keep aside each day? I already hear a resounding YES. But where to keep? Simple!  Transfer it to RFSA. That should be the first activity in the morning after you unlock your laptop screen - starting your day's work with a noble act of saving.

You should refrain from automatic transfer of money at the end of the month which accounts to 30 X 50 = Rs 1500. Rather you transfer each day this tiny amount to RFSA/DFSA.

Well, the reason for this is that you need to be aware of this process of saving every day. Each day when you transfer this amount to RFSA, you are seeing it grow and you are engaged in the process of accumulation. And this helps.

Every activity comes in opposite pairs. Laughing and crying. Hating and Loving. Spending and Accumulating. The more we participate in any one out of the two in the pair - say accumulating, our propensity for that increases. So everyday, when we transfer Rs 50 to RFSA/DFSA, we nurture ourselves to get into the mode of saving. We change in a sub-conscious level.
Wait a minute. And this effort of yours is not miniscule! If you take a 10 years scale, do you have an idea how much it will amount to, considering an 8 % annual return? I leave the calculation to you.
Also each year money erodes due to inflation. Hence, you should increase Rs. 50 to 54 in the 2nd year and so forth, considering an apprximate 8% of inflation.
Money grows on the tree of patience.

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