My Financial Freedom

(Jan2024 by Namrata Mishra, 44 years old former IT professional staying at Bangalore originated from Puri, Odisha)

This is Namrata Mishra, a native of Puri, Odisha who completed her Engineering in 2001 and started an IT career afterward staying around the cities of Ahmedabad, Mumbai, Chennai, and Bangalore. I belong to a job-oriented family tree on both sides; where the importance of education and financial stability can be seen.

This post is dedicated to our family financial advisor Mr. Oliver Sequeira for introducing me to the concept of SIP, PMS and wise investment; further widening the horizon.

Prologue – I come from a humble middle-class family of 3 siblings, my father is a retired Security commissioner of SouthEast Railways. I was born in Odisha and later traveled across many cities(New Delhi, Mumbai, Ahmedabad, Chennai, and Bangalore).

It is solely from my father, from whom I learned the initial principles of discipline, punctuality, saving, negotiation, empathy, and ethics. Dad brought those fresh new notes and coins received as part of his monthly salary when I was in middle childhood. That is when he taught me to take all the loose coins and save in a tall pink Pond’s talcum powder tin container. During major festivals or my birthdays, Dad continued contributing to my fancy piggy bank. I was so possessive about it that, once I remember demanding dad an interest of 100% for a day when he requested a loan of 100 Rs.

Post engineering, battling a bad recession year of 2001; I failed to get a job anywhere until March 2004 in Chennai. That is when my journey of intense savings started with a zero-balance bank account. I paid off some study loan taken from my aunt, stayed in a low-key PG accommodation(sharing a room with 3 other girls) for 3K a month providing simple meals, walked to the office, and bought only the bare minimum of clothes, shoes, a mobile, and a handbag. After about a year, I traveled to Germany and saved the entire amount from my two months of onsite travel per diem, rather than spending on trips or shopping.

Below are some of the important areas and how I handle these differently –

Daily Habits - Having home-cooked meals, not getting lured by TV advertisements for impulsive purchases, reducing utility bills, limiting subscriptions and memberships, avoiding mall and theater visits, and not having a crowd of friends are some of the tricks, that helped me to save significantly. I would look for branded or non-branded offer items to buy only minimal, did my grocery shopping how my dad would, never hired a maid or cook, never purchased a car as commuted to the office by their cab, stayed away from makeup and jewelry purchases, and made careful friends. I spent towards joining fitness classes, getting much-needed orthodontics treatment, buying a bicycle, and having a lean and clean household during my late twenties. While most girls at my age were searching for a rich husband, I focused on being a rich woman.

I would plan to save enough to last for the next 10 years so that job market recessions don’t break my spirit. I don’t treat my personal life like a project plan to marry at 25, have kids before 30, and struggle to manage a family if am not emotionally ready for it. I buy only whatever is essential for life so that I don’t have to sell what I require. I write down my daily expenses, am particular about where to invest my savings, and do not give up on society or peer pressure to maintain a lifestyle. When I could afford to stay in a villa, continued staying in an apartment. I unnecessarily don’t believe in upgrading automobiles, house or household stuff, or electronics till the time they are usable and repaired, rather I maintain things immaculately and do all the household work by myself. I don’t believe in eating Biryani for a day without bothering what will be on my plate tomorrow, rather have a simple meal each day of my life. Before spending on anything, I question myself “whether it is necessary for my life, what is the alternative, how long I intend to use the same” etc.

Finance management and Negotiation skills – I have personally followed a single debit card, zero credit card, zero personal loan, no household items on EMI rules so far. I attained full financial freedom by the time I turned 39, moving away from real estate and FDs to grow my corpus fund. I got my first job quite late in life, never settled abroad, no ancestral inheritance, yet managed all alone to have a debt-free flat and a significant retirement corpus within 15 years of corporate life. I saved 50% or more of my take-home salary, plus bonuses & variable pay, the rest distributed over other buckets carefully. I would do my IncomeTax investments, property tax payments in April month itself rather than waiting for the yearend. I started SIP in 2018 and would ensure that the deduction happens in the first week of the month and never panicked during market crashes. I regularly pay for health and bike insurance. I attend regular seminars on thoughtful investments, meet similar mindset people, try to learn from their experience.

I have been criticized by many from my industry specifically that I am a miser and it was me who was living a comfortable life when COVID struck in 2020. I have had no regular jobs or business income since 2019, yet I don’t have to beg friends or family for my expenses. I am enjoying the results of saving like an ant for rainy days when the weather is sunny.

Even being the youngest of three, I had the privilege of tagging along with Dad for all types of shopping. I learned the art of negotiation without harming the seller. Being the sole bread earner for a family of 6, my dad followed the rule of “a penny saved is a penny earned”. I go shopping without thinking that I must buy that item, or else that’ll make me buy things without good quality and pricing. I do weekly, monthly, and yearly budgeting buying things accordingly either in small or larger quantities.

Broadly speaking, one can split monthly expenses into four different categories: fixed, variable, intermittent, and discretionary.

ü Fixed expenses: These remain the same each month such as Mortgage payments and auto insurance premiums are examples of fixed expenses. Focus on having less or no home/vehicle/personal loans and pay off these first. Plan on buying a house, which you can afford to stay in even when intermittently losing your job/business. Well design the house to get maximum living and storage than focusing on buying a large one with many rooms.

ü Variable expenses: These may change from month to month but are generally expected and within a certain range. Utility expenses and groceries are examples of variable expenses. Focus on reducing to a minimum, shopping in local markets and seasonal stuff, and cooking at home more. Be responsible for electricity and water usage. Plan the festivals and make snacks, sweets at home like in earlier days, rather than solely buying from the expensive shops.

ü Intermittent expenses: These are costs that do not occur regularly and can include a surprise or emergency expense. A need to visit a family member, visit the dentist or hospital OPD, or a home repair would be examples. Save an extra amount for these.

ü Discretionary spending: These are expenses that are not essential. A night out at a restaurant, buying that branded handbag, an iPhone would be an example of this. The less you crave these, the better your life will be in the long run.

ü Pause and think ahead for at least the next 10 years, before you à

· Buy an expensive house/vehicle and slog for years to pay for it

· Buy expensive kitchen appliances/TV/laptop/watch/iphone/bike on EMI

· Have loads of credit, debit cards and bank accounts

· Have vacation and specific date trips just for luxury and showoff and weekend mall visits

· Getting married because everyone does and have two kids

· Have habits of alcohol/drug/smoking

Housing – The amount saved during the initial two years of my job in Chennai contributed towards the downpayment of my flat which I purchased in late 2006 after shifting to Bangalore. I shifted to a 2BHK flat in a decent location in Bangalore just before my 27th birthday. My salary was 5L PA and I took a loan of 20L while managing the entire downpayment plus furnishing cost etc. of around 12L solely from my savings. I didn’t opt for any fancy decorations, and bought all used household items; my focus was on repaying the loan in the next 4 years which I did. I have continued staying in a humble yet tastefully decorated apartment. There was a period 2016-2017, when I owned 2 flats and a villa; selling the rest except the one flat that am continuing to stay in with my husband. I don’t own any land or house in my hometown or anywhere else, rather I save and invest, so that can buy a retirement place when the time comes.

Food and Grocery management – I would rather spend on grocery and good quality cookware shopping than expensive restaurant bills and stay away from fad diets and grocery lists. I focus on saving without compromising on our health or edible items. Dad believed in buying fresh vegetables, however, he would focus on seasonal, and hence comparatively cheaper consumables. He used to have job related travels and would carry products specific from that city, which would be otherwise expensive at ours. For exp, we had the luxury of eating a lot of fresh yet cheaper crabs from Chilika Lake, similarly pomfret, prawns, mangoes, etc. from wherever he traveled. Sundays were reserved for mutton, yet he would skip buying if the particular vendor mentioned the quality that day was not the best to buy or for some reason, the price would be higher. He would rather bring fish, prawns, and crab that day. He would wait for an item like mango to reach mid-season to buy the juiciest yet cost-effective ones as the supply would have increased. Somehow whatever he brought home would taste the best, none of us could buy better than that. An excellent cook himself and being the mess manager during his hostel days, my dad perfected the art of budget buying with luxury eating. My mom herself is an excellent cook, who strictly fed us different cuisines so that we do not later on become picky eaters. This helped a lot later when I left home, stayed in hostels/PG, and traveled to different states and countries.

I started showing a keen interest in cooking when I was just 4 years old and by the time, I was 12, could shop, cook an entire meal, staying alone at home taking care of everything like my mom would. Since college, I stayed in the hostel, PG, and later owned a house and this independence helped me ensure my good health and savings on food. Whenever my dish would not turn out as expected, I would never throw it out, my mom taught me this skill of reviving seemingly ruined dishes. I have a FIFO rule for the refrigerator (what goes in first must come out first), which is thoroughly cleaned weekly and food items are packed in the right way, thus minimizing wastage. I have never seen my parents throw any edible thing, which I follow diligently in the era of express food ordering, generating excess and wastage. They were masters of buying the right number of groceries, veggies, meat, etc., cooking fresh food, and heartedly distributing it to friends and neighbors. Sharing and caring have been their mantra over greed, accumulation, and wastage.

Over the years, I have enhanced my culinary journey, thus cooking and baking majorly at home and we go out mostly for short bites or so. I make an extensive range of condiments, snacks, sweets, cakes, breads, snacks, mocktails, and international cuisine at home.

Commutation and Traveling – I had enjoyed the perks of Railway passes for a long time. Dad never owned any car or bike, and walked a lot just to save a rupee from the hand-pulled rickshaw at Puri. The seabeach is at a distance of 3km walkable distance from our house, which we would visit once in 2 weeks or so as a family; during my childhood. My parents would mention to the kids that they only have 2 Rs, either we rent rickshaw or have potato chips. We would always happily choose to have the chips over riding a rickshaw, thus picking up the sustainable habit of walking. To date, I use BMTC in Bangalore, walk wherever I have a good road or footpath available, and opt for shared rides. This has helped save money and earn a great deal of time management and health.

I plan ahead wherever I travel and take the bus, metro, and shared cab rides as much as possible. I book a bus or train for overnight journeys rather than a flight. Nobody has the patience nowadays to enjoy those long train journeys with a book in hand. I have enjoyed extensive solo vacation trips to Goa, Maldives, Bali and Andaman with ultimate planning. From booking a package deal to renting a homestay, I have experienced it all.

Cloth and other luxury shopping - I walked to school till 7th, later received my first bicycle in class 8th and a manual wristwatch in PU/11th class. Parents shopped for our clothes till we left home for higher studies and many times even after that. I wore my sister’s clothes for many years without any resentment. We neither demanded any fancy things from my parents nor felt the need to, the blessings of having caring parents around are beyond anything else. That is why I never give importance to worldly things, as they are just for comfort and not for happiness. We had fixed occasions yearly when new clothes would be bought. Mom also preserved the outfits gifted to us by the relatives till the next festival, while stitching clothes, curtains, and pillow covers for the house.

While on the job, I bought outfits smart yet comfortable outfits, which may be branded or non-branded. Sale could not lure me unless the item seemed to be of quality and value. I have purchased clothes from Zara, Vero Moda, and Chemistry even on non-sale time, but one item to last me a decade or more. I buy one sneaker at a time, so that I use it regularly and not for fashion, at times indulging in a vast range of affordable sandals.

I have invested in clinical skin treatment for my acne rather than spending on salons and makeup to hide the scars. I practice early wakeups, longer sleep, less screen time, and less processed food to have a healthy body and skin. I look for deals in salon, spa, and hotel visits as well, where I can enjoy luxury once in a while without creating a hole in my pocket. I never owned any MacBook, iPhone, iWatch, fitness band, high-end TV or similar items, I look for features and base usability rather than useless features and flashy designs.

Depreciating assets and household items – I upgraded only the TV to a 40” LCD Sony in 2011, which we are still using with no plans for replacement. I have an OTG manufactured in 2002, a Honda Dio two-wheeler from 2013, LG refrigerator from 2003; all ancient yet in excellent working condition like me.

I have gifted myself a leg massager, and good furniture occasionally which I maintain well. Never owned a car until 2021, used existing two-wheeler within a 10km radius. I can count on my fingertips the number of mobiles owned so far, as they are very few; the longest being used for 8 years. All electronic items like mobile, laptops, TV, etc. I buy with intense research for my usability and also maintain them well, at times upgrading the parts. To date, didn’t buy a microwave, air fryer or any gadget just by going with the flow. The most expensive mobile I owned was 15K and my laptop was 42K, which am using till date.

3R’s (Reuse, Repair, Recycle) - Earlier generation folks believed in fixing broken things or relationships rather than going for new ones, I follow the same rule.

Yearly twice, I would clean the entire house to check what needs to be donated, disposed or even sold. I regularly clean, repair broken appliances, and maintain plumbing, and electrical stuff. Deep cleaning of the house is a must for me, which I also hire professionals for. When I had an extensive balcony garden, the vegetable peels, etc. would contribute towards the organic compost. I have always carried cloth bags since my childhood and never bought plastic bags from vendors. I also carry my own container while buying food from a nearby small restaurant, single-use plastic is something I completely dislike about. I have revamped many of my old sarees into beautiful gowns, frocks, and smart outfits, thus looking different in the crown of readymade garments.

I have made tote bags from old jeans and pants, donated clothes to charity, and maintained a lean wardrobe thus minimizing landfill. I buy certain clothes only for need and not for Birthday, Deewali or other unnecessary occasions. Used old bedsheets to pack suitcases, as those can be washed too. Carry a water bottle everywhere, which can be easily refilled. Reuse those Deewali diyas, decorations, lights instead of buying new ones; the same goes for the god idols which cause pollution.

Learn the art of cleaning, repairing and maintaining everything as small as a needle and as large as a car.

Couple Journey - I was 41 when I met my husband Nitin and got married the same year in July 2021. We both chose to have a simple wedding in “Arya Samaj” with 12 friends attending a lunch reception. We didn’t spend extravagantly on clothes, jewelry, venue, decoration, or photography; rather planned a nice trip to Kerala and treated our friends at Marriott. We believe in spending our attention and time with each other to create memories, in preference to what is in society trend. Most of our inner qualities match, initially the contrast was in our spending habits. 2.5 years fast forward into the marriage, Nitin realizes the importance of being careful with money and has started his SIP journey stopping all unnecessary spending, especially on depreciating assets, luxury trips, and lending money to friends that never come back. We both do our monthly budgeting, write down expenses, plan our trips, treat our friends to elaborate dinner at our place cooked by me, and spend towards regular maintenance of our belongings rather than impulse purchases. The only luxury purchase of his to which I agreed was buying an MG Hector SUV, on the condition that he’d take a personal loan from me with the same bank interest rate and pay it off within 3 years. He has given up frequent visits to expensive coffee shops and fine dining restaurants and rather enjoys exploring local eateries and different cuisines. We carefully utilize accumulated hotel and credit card points towards personal stays and flights.

I have reformed his tastebuds, how my mom reformed mine. We spend our weekends on yoga & meditation, watching good movies at home, cooking together, meeting friends at home, and taking longer terrace walks than the mall or theater visits. We quietly celebrate our special dates without purchasing extravagant gifts for each other. We plan day-long city trips on a metro train, walking down multiple areas without worrying about traffic or parking issues. Nitin had a completely different life as a teenager unlike me, yet he is open to new learnings and contributes to household chores at home. There is a saying that – Every girl looks for the qualities of her dad in her husband, well I never did but I have someone with a golden heart, zero ego, and adaptability as my soulmate. Rest of my life, am on a learning path of different sets of qualities from him.

Ethics and Empathy - We never learned about caste, religion, or social status differences. In today’s world of show-off, I followed this in my corporate journey thus earning plenty of good wishes from my peers and juniors specifically. I would like to donate not to have tax benefits or to earn reverse blessings. I may bargain specifically while purchasing, but will donate the things needed at home seeing someone else in dire need. The love for our furry friends/dogs came to me in genes from my dad, who would focus on treating ill stary dogs later giving them away for adoption. I would keep our apartment complex and city clean, the same as our home.

A visit to Gurudwara, 10 mins spent petting an animal is more peaceful for me than visiting a movie theater.

An epilogue – I may not have had an extravagant house, luxury restaurant visits, premium vehicle, expensive jewelry, fancy clothes, or loads of money while growing up, however, we were healthy, happy, and surrounded by well-wishers.

I recently turned 44 and the last 4 years' journey since COVID struck has been no less than a roller coaster. I survived that period staying all alone at Bangalore, taking care of my health, and staying hopeful. Everything in my life, personal or professional was against the favor; yet I survived strong. I have been complimented about how I stay alone on my terms, without any regrets and my mind says – “I am alone, not lonely. If you cannot make yourself happy, nobody else can”.

Life has taught me grit, courage, patience, leadership, survival skills, and the fact that “We all have to fight our own battle”.

Last year, I joined a gym and dedicatedly worked on my fitness. My grey hair does not bother me as I can walk for hours, do deadlifts and leg-press for significant weight. I can dance on Zumba, swim, do aerobics, run on the stairs, bicycle, and do not count years of my age.

Health, emotional wellness, and contentedness take one higher in life and there is no shortcut to success.

References -->

My LinkedIn profile,

https://www.linkedin.com/in/namrata-mishra-56ab6411/

My Facebook food page,

https://www.facebook.com/FoodiesMood/photos

With my husband Nitin Saxena