MMA discussion on the theme of the book - The Compound Effect - Part 2

0:00action from it. Simple. Five o'clock we keep an alarm and we need to get up for a jog. Separate your feeling on one side and your action on the other side. Don't combine feeling and the action. This is a very core message. I took it from the book. Separate it. Separate it. Your feeling tired. Your action is you need to get up and go for a walk. Separate both. Draw a line. Separate tiredness. That is the feeling. Don't depend on it. Sometimes you might feel okay. Sometimes you might not separate it. Remove it. Remove the feeling aspect of it and only see the action part of it. That is called discipline. He says very simply he put discipline is to do a task. Come or come or may I need to do the task regardless of the feeling I have. That is called discipline. He says so when I address the students I got an answer from the book. Child why do you want to read or why do you want to get 96% in your economics.

1:05Maybe you want to buy a car for your father. Maybe you want to buy your living in a rental house. Maybe you want to study and buy a house for your family. Go deep and understand the purpose. Why do you want to score 96% in your 12. Write it bold and stick it in front of your table. That purpose will ignite you. So to the question the one answer rather I found out for the children who are suffering out there who are not able to sustain their motivation is the wife power. If we as parents or teachers or professors, we are able to help the child to give their wife the purpose. Why do they have to study? Then the motivation is sustained too. When we also tell them remove the feeling component of remove the feeling separated in your mind draw a line feeling tanya kshantanya. Then the habit and the discipline automatically comes. The feeling will not

2:08interfere. Let the feeling be tired. Let the feeling be exhausted. Let the feeling you might not feel tired. Let it go in one track. Let it happen. That's okay. Still we continue to get up and go. Still we continue to read a book. Still we all the disciplines we continue to do it. So two things. One is why power to separate draw a line from your feelings and the action. I found it very interesting. Thank you for my answer. Ramki, two things that you strongly resonated from this book. One or two things. The first thing I will say is no you are you have to own up. Means no you you make the choices. So the responsibility you need to own up that responsibility. That is very very important. We just know very natural choice which you need to make. Sometime back one of my investor came back to us and while discussing we understood that he is

3:14having a large sum in his savings bank account. About 20 lakhs. I can say 20 lakhs. Let's take it for that for example I can say. So this 20 lakhs he is holding it in savings bank account and he is about to retire in another 5-6 years and I asked him why you are holding this much amount in savings bank account. No sir it gives me comfort. It gives me safety aspect. I feel very comfortable when this money is there in savings bank account. Then we try to give a reason to it. Why that is why his choices need to be little different. Number one this two and a half percent what you get it in savings bank account. I asked him how long you would like to keep it. I would like to keep it forever. That is what his answer has been. I want to keep it forever. So if two and a half percent is the

4:20interest what you get out of savings bank account. It gives you comfort of safety any point of time you can withdraw. But think about your loss of purchasing power means next year the amount cannot buy the same kind of goods or services. You naturally lose purchasing power your inflation is at 5 or 6 percent naturally you lose this. So there is a very important thing which you need to understand. Then number two what is the alternative you just divide it. Just we suggested a few things you keep the amount whatever you feel is required on any particular day. He put that number as 10 lakhs. 10 lakhs I need it at any particular day for some emergency. So we suggested one lack in savings bank account. Keep it. Four lakhs in sweeping account, same bank account but no sweeping automatically the money moves to a fixed deposit when you do not use it. So the fixed deposit gives

5:22a higher interest rate. Then go for a fixed deposit for another five lakhs. Go for a hybrid kind of strategy or fund for another five lakhs and another five lakhs last five lakhs go for equity kind of choice. So the return difference is about two and a half percent to an average of about 9 percent and above. Still he has to understand that in numbers. So we gave a 10 year projection. 20 lakhs at two and a half percent in savings bank account would have grown to 25.5 lakhs. That means a 5.5 lakh appreciation. At 9 percent it would have grown to about 47 lakhs. So the difference is almost close to 21 lakhs. I asked what you will do with this extra 21 lakhs. He suddenly got something in him. He started executing. Of course the amount was much larger than

6:25what I talked about. So it's the choices you make. Because even if you are talking about money, we are just custodians of her money. We are not owners. We are custodians. So that is something know which we have to make. The second thing what I would like to make it is however as no Babu has started out in a small action. That makes some difference in life. It may be very very small. Long back in 2015, I was no addressing a group of college students. The next day I am getting a call from one of the girls. He says, Uncle I would like to know speak to you for some distant. You gave this awareness on financial planning. We loved it. I would like to know start some saving. I don't know how much you would like to save or invest.

7:26He said, I don't know uncle. Some months I get this expense. Some months I get that expense etc etc. Then I took another 5-10 minutes because he is an extra who is calling for the first time. I started making some notes and made a pattern. This monthly this much expenses goes, half yearly this fees goes, yearly this kind of thing goes etc etc. I could able to find she could effectively save about 200 rupees per month. She gets some pocket money and fees because parents are out of Chennai. She is studying in Chennai. She was in second year I think. So 200 rupees. When I said now 200 rupees is what effectively you could able to save. She said, Uncle can you help me to save this thing? I said it is still possible. There is something called as a micro SIP which is available which starts from 100 rupees which called as Chota SIP. We just started with that thing. After 6 months she calls up and says, Uncle my party came in and she gave 1000 rupees as extra

8:34amount. I want to know add that thing. We can add it to the same scheme. The beauty is that girl has started building that habit. She got married about 2-3 years back. She has influenced her husband who was no ascender by nature. He was spending left right but she has influenced him and now he has started no saving. First meeting he saw he has villain and now he has started no saving and investing. Then her relative circle, her wherever she is working, she is earning in lakhs per month today. Where ever she is working, she has introduced at least 14-15 friends of her. So the book talks about something called, you start the action small and it creates ripple effect. Ripple effect happens even if you start small and you know consistent with that thing,

9:38the ripple effect normally comes in. Her portfolio is close to a crore now, last month. So all started with 200 rupees and I made her frame that first statement of 200 rupees and keep it in her table so that it remains 200 is not small and she took that decision when she was a student. Almost 40 students were there in that session and one took that decision and in 10 years it is close to a crore and all on her own nothing from that thing. Okay as an advisor, what has happened to me? For me also that ripple effect happened. One, I am supposed to speak to people who have money. I went and spoke to somebody who is a student who was not my natural target I just went and gave because I would love to give that no in whatever knowledge we wanted to share, I just went and gave. Now as I said her relatives, her friends, all of them have started investing

10:47through us and that is the ripple effect I got. I took that small choice of going to a person because I don't know whether she will be successful or not. I don't know 10 years back but today she is successful and I am honoured. So ripple effect happens and it always makes one much, much superior over time. Thank you. It is to the benefit of all of us. Thank you. So I just want to give a small, you know, in the book I published when I was thinking about it, there is one incident that happened right in front of my eyes which I am able to resonate with and I thought it is worth to share it. Many, many years ago I visited a place and you know in the

11:53Kalyan reception number it was, they will give you a plant, a small plant, they will give you or something like that. So once such a place I visited, they gave me a small bamboo stock on a so small one. So I came and placed it in my garden, beautifully next morning and I watered it. And every other day I have somebody who watered it so I am not very clean watered on a day to day basis but every once in a week as I am walking into the house, I will kind of look at that place and the plant was green but exactly the way I had left it, exactly. So one mantachi, two months, six months, one year, two year, three year. But I had, I didn't have a mind to pluck it out because it was still green. The stock, the stock was still green. So I knew that the plant has not dead, plant is very much alive but just is not growing, exactly the place where we had kept

12:59we had, I had taken trouble of putting some cow down so that there is some nutrient going, I thought it is nutrient deficient soil and all those things I did, nothing happened. Four years consistent watering all done that bamboo stock is that 18 inch plant that I got four years ago is exactly one more little bit gone, no change in the plant. So I went for a trip to Bangalore for two, three days and I returned. As I was walking and I suddenly found that that 18 inch stock had kind of come to about three feet and I said maybe I didn't notice it in the last few months, maybe it's been growing this way, right? Two days later I walk out that stock was five feet, right? In exactly 40 days from now, from then that became a bamboo pole that

14:05went about 100 feet above my house and I learned this later that bamboo first grows its roots down, it goes down hundreds of feet because when it becomes a large bamboo stock it has to hold the weight of that and I learned that much later but it is so astounding that in many things in life that is what we are all. I stop taking sugar because I want to lose weight. So seven days I have not added that half a teaspoon of sugar, kasam the coffee of the egg and I'm going to encourage it there. Seventh day I go away myself, I want myself to weigh four kgs lesser. It's like that expectation that the stock must grow to five feet in the next one week.

15:08But if you continued it for the next three years you would find the compound effect of that will be that you will be in a far more healthier place. Unfortunately in many things that we do in life be it health, be it money, be it relationships, we do not invest time and unfortunately we are in a place where speed is celebrated, slowness is and it's ironical and I'm often astounded. Humans want things to happen at the quickest and live for the longest. We want to live as long as we can maybe 125 years also we want to live but coffee put you on and I want it in the next 10 minutes, Zepto. I do think this book will make you resonate on the

16:17thought that a lot can be achieved if we weigh our consequences of what the outcomes mean to us in the long term rather than expecting immediacy in everything that we do. I think that will be one of the principal takeaways for me from this book, investing time and energy and calibrating it, reviewing it but making sure that the expectation is in the long term but I'm going to take this to Sandhya and can you tell how this book will be useful to people especially if it's in your audience or so in your words. It is just not for you, for me also and for everybody. Maybe you're starting a habit in any dimension of yours. So we have health, we have finance,

17:21we have relationship, profession and choose one dimension where you feel you're not growing. Maybe in your mental health you're just the same you wanted to grow or physical health. You're just the same K.A.G. and you're feeling tired very often. You feel you want to improvise in it, any one dimension you can pick and to improvise it in the only tool that we have is that we need to put a habit to it. The most important thing is when we start a habit we need to continue it for which the book gives a beautiful formula called add on principle. That is the self-talk mastery. How do you talk to yourself the way you continue or discontinue the habit depends on how do you talk to yourself. Say for example I am 80 K.A.G. and my goal is 75 K.A.G.s. I want to drop

18:305 K.A.G.s by avoiding junk food. The way I talk to myself, me, you, everybody. Why? That is how our brain is designed to talk. I don't call negative talking. Maybe it is called as an avoidance talking. That is how our brain is designed to talk. Asandha from Jan 1st I have decided to avoid junk food. I have decided to avoid chocolate chips. And they are please avoid adding sugar to the coffee. So this is the self-talk I do myself for a very good noble objective or goal to lose 5 K.A.G.s. The author gives a twist. Change this avoidance talk to add on talk. Avoidance talk is negative. It gives a painful feeling for you. Hey I need to avoid

19:32chocolates. I need to avoid ice creams because we crave for all that. We like it. And you are avoiding it. So there is a discrepancy, a craving that is always present. So he simply says change it to add on talk. Asandha from Jan 1st I will be adding lot of sprouts in my diet. Asandha from Jan 1st you can take a millet, millet rice and millet pongal in the evening. From Jan 1st you display fruits and healthy nuts on the table. Add on talk. The self-talk should be not what you avoid. The self-talk has to be what you are going to add in your habit. This self-talk please understand your brain is also hearing. You are hearing it. And therefore the brain is very happy that I am getting something rather than I am losing something. It is very happy. I am getting something.

20:37I am getting fruits. I am getting sprouts. I am getting protein. So it brings a spark of dopamine, a serotonin, the joy hormone, the pleasure hormone inside you that helps you to sustain the habit month on month on month on month. So the one principle which if I had to share add on talk. We are going to say like we are going to save money. Don't say let me cut down my expenses on spark next month. Let me let me not get my hair cut or my particular manicure. No, don't say that. Let me increase my investment. Do not use the word spend. Use the word investment. Spent means at the end the level of unconsciousness is reduce. Investment means increase. So he says do the add on principle. Maybe it is finance. Maybe it is a relation. Maybe

21:44it is whatever it is. Do the add on principle. Don't say I spend time with my children every day five minutes. Spent is negative because how we have been grown in younger days. My mother don't spend so much time in the TV. Don't spend so much time with your phone on the front. This is how. So the end the level for a spend means reduce, reduce, come down. Invest. Invest means our brain understands it is growth multiplies. Increase. I invest time in gym for my health. I invest time to read every day on the book. I invest on my health. Use the term and so add on principle. It's a wonderful takeaway which definitely has a bearing to continue your habit which I would want the audience to take home along with me. Add on principle. Your final takeaway we are right out of time. Your final takeaway that we have to take some

22:50questions as well. Seek. Positive habits is something very very important. Sometime back how to get this reading habit. This was a discussion which we were having in a group. A senior person said, you know, it's very easy to make it. It's the most you know tough first thing. When we know take that thing, first you know you are correct. So this is what he said. Then what interests you? That is something you have to start with. He said, you know first you know take Panchatantra. Chinna pasaka nama padit chatantra. Take that and restart reading it. Every day one story, two story or three stories, whatever it is. You know, initially start reading it. You develop a habit. Then take, you know, some Rajesh Kumar novels or chase novels. So which doesn't know make you to keep it down. So it, it, you know, entails you that you know

23:54that I want to read it. In a month time, you have developed a habit, muppapar avdhan al definitely your hands, if you get a get a get a get a get a get an auto book, you know, that is what you know, he said so initially you have to start with something. But what made me, what made a great impact on this book is something very very interesting which is the influences, right. You have to be there where there is positive influence. For example, MMA, this group is a positive influence on you. Here we are not wasting our time. Here we have all assembled to grow something and we have come with a common objective and this is a positive group. So all you have to do is just judge yourself, who are all in your contacts, whom you are

24:56spending more time with, write down all those personalities or name. Then write what is good about them or what is not. Then average their qualities in terms of how healthy they are, how they are, what is the bank balance, average bank balance they are carrying and how good are they in relationship in terms of family, society, etc., etc. You will know who are those top five you have to spend more time with. So your influences make a lot of positive qualities in your life. That is what Babu has started with when he said, tell me your friend, I will tell who you are. So your positive, how to identify is something which we need to start with. I think that is an amazing point of this and this book inspires with those small, small

25:58stories. Thanks. Thank you. We are completely run out of time. We have a few questions on that note, I want to thank Ramaki and Sandhya for all what you have shared. So Sandhya, the next question is for you, from Vanila, a psychological and sociological perspective, how can individuals rewire habits, when motivation fluctuates, very tough question only for a doctor. Dear Vanila, wherever you are and everybody, the question what she asks is, how can I continue my habit even when my motivation fades? The question is, how will I continue my habit even when my motivation fades? Very clearly, motivation, how do you know? When you have 1000 days, you have to go to Agarbhati, first 2 days you have to go to Agarbhati Pond, then the spark from one potassium will go to that and then that will go to Agarbhati

27:07Pond. So motivation will only help you to start the habit. Ironically, I am a motivational speaker. In those words, my mentor will say there is nothing called motivation Sandhya, there is only one kind of motivation which is self-motivation. That is what my mentor says. motivation will only help you to start the habit. To continue the habit, Neuroscience says, with willpower, you continue it for 21 days. Monday, the new runs, the new grooves form aidema, new grooves. They will be formed in 21 days, that is why the 21 is very powerful. The new runs takes 21 days to form grooves. When the new grooves are formed on the neurons, the habit becomes automatized. It goes to your subconscious, you need not put any effort to do the habit, just like brushing teeth. Kathalya, you are saying, how do you brush your teeth, how do you brush your teeth, how do

28:09you brush your teeth, how do you brush your teeth, we don't think, that is your problem. So it becomes automatic. So what I simply say Venilla, just play a game, call it a game, call it willpower game. Call it game. Don't call with big, big names, psychological, physiological, how do you wife like. Simple life is very simple, call it as a willpower game. End of piti kimo, other orvaraartak panakudath. Say for example, you like appalab, pop it. Don't eat pop it for one week. Don't keep it for one month or two months, start simple, start short, start it for a small period. Appalab, piti kimo, one week, Jan one, Jan seven, I will not eat appalab. Eighth, you start eating, but Jan one to Jan seven, don't eat appalab. You will develop your willpower or what you don't like it, which has got to be done, do

29:14it. Say for example, cleaning yourself. Most children will not like it. Put yourself into the position to clean it once a week, either drop something which you like the most for one week or inculcate some task which you don't like, which has got to be done once a week. By this what you do, you develop the mental strength, the mental power, which means a willpower. The point is when we should be the always the masters, the habits should be the slave. Reverse it. That is why the biggest problem today. So always ensure you have the control over. You have to take control of the habits. To start the willpower game, seven days, just keep doing different tasks.

30:18You will grow enormously in your willpower. Your habits will continue to continue on its own. Thank you. Thank you, Sandhya. Pramapishinaya. Question to you. Yeah. Question to you. Yeah. Question. What small but financially disciplined habits do you believe create the biggest compound impact over 10 to 20 years? 30 second answers. You are running out of time. Okay. Budget. First thing is whatever income you are getting, I sure, yeah, try to save 20% of it. When I say save, it should be like your expenditure. Along with your expenditure, first make this as your expenditure and you know, have the other expenditures. So with time, what you will see is the money which you save regularly with this way grows much, much faster than what it is and it gives that compounding effect for a

31:20simplest thing, 20,000 per month started as SIP will take 13 and a half years to get one crore. The next one crore will come in five years. The subsequent one crore will come in three years, subsequent one crore and so on will become much faster. The first 13 and a half years, you made one crore, next 13 and a half years, you will make five crores. So totally you will end up with six crores within that, you know, 27 years. That's something good about compounding. Thank you. Thank you. Thank you. Just feels nice to hear all those crores. So one quick question, how do you deal personally with uncertainty when the results of consistent efforts are not visible, Durga? This book is all about that, what it says is, yes, there will be periods when many of us

32:26are working on some project or something where immediate results are not visible. I am kind of taking from where Sandhya said, if you have a purpose behind what you're doing, then you can sustain the motivation that you need to carry on. You're not looking at an external validation. You have an internal purpose with which you are approaching that. So I think that is the way to go about. I have not seen in my life so far any effort go based. To give you an analogy, I have seen people, you know, want to cut trees, strike 99 blows at a spot and then give up saying that, you know, it's too tough to cut the tree and the next guy just leans on the tree and the tree falls, right?

33:27So sometimes you are just that close to success, what we drop off because we think it's impossible. So the answer to your question, Durga is that, see it to the end, see it to the result. Continue your journey. Your journey is meant to continue till you see the desired results. And your result will always happen. It's not whether it will happen or not. It is when it will happen. It's a question of when, not if. So if you have that mindset of saying that it will definitely happen, but it could take a little longer, I think you will be able to kind of carry that journey through. I think we have completely, I've got the signal that you are completely right out of time. Anything more MMA will have to give us dinner also, which is good.

34:28Thank you, sir. Thank you, sir. Thank you, sir. Thank you, sir. Thank you, sir. Thank you, sir. Thank you, sir. Thank you, sir. Thank you, sir. Thank you, sir.