रावण के जीवन से वित्तीय शिक्षा

जिस प्रकार समर्थ राजा और विद्वान, रावण, उसके दोषों से गिर गया था, वैसे ही यदि आप वित्तीय प्रबंधन के सिद्धांतों का पालन नहीं करते हैं, तो आपका धन नष्ट हो सकता है। हम सब दशहरा मनाते हैं, इसलिए आज रावण के जीवन के विभिन्न पहलुओं से उपजी इन वित्तीय नियमों को सीखते हैं,

1. ज्ञान शक्ति है

रावण वैदिक ज्ञान का पावरहाउस था।

वित्तीय शिक्षा : वित्तीय विकास और नियमों के बारे में खुद को अपडेट रखें।

यदि आप घरेलू बाजार या वैश्विक घटनाओं पर नज़र नहीं रखते हैं, तो आप उन परिसंपत्तियों में निवेश करने की संभावना रखते हैं जो अनुकूल रिटर्न नहीं देते हैं। उदाहरण के लिए, अचल संपत्ति में निवेश जब रियल्टी बाजार में तेजी देखने की संभावना नहीं है निकट भविष्य में अपने धन को नष्ट करने के लिए बाध्य है। इसी तरह, अगर नवीनतम नियम आपके ऋण निधि पर कर लगाते हैं, तो जल्द से जल्द छुटकारा मिलता है, लेकिन आप इससे अनभिज्ञ हैं, तो आप अपनी मेहनत से कमाए गए धन को खो देंगे।

 

2. एक गलती वर्षों की प्रतिष्ठा को धो सकती है

सीता के अपहरण ने रावण की अन्य सभी उपलब्धियों पर ग्रहण लगा दिया।

वित्तीय शिक्षा : असामयिक छुटकारे के परिणामस्वरूप भारी नुकसान हो सकता है।

आप कई वर्षों से इक्विटी फंड में निवेश कर रहे हैं, लेकिन अगर अचानक मंदी से आपको घबराहट होती है और आप सभी इकाइयों को भुनाते हैं, तो आप वर्षों की कड़ी मेहनत की उपेक्षा करते हुए, नुकसान उठाने के लिए बाध्य हैं। याद रखें, छोटी अवधि के शोर से प्रभावित हुए बिना लंबी अवधि के लिए इक्विटी फंड में निवेश करना सबसे अच्छा है।

 

3. अहंकार को अपने निर्णय न लेने दें

रावण का बड़ा अहंकार ही उसके पतन का कारण था।

वित्तीय शिक्षा : सही समय पर घाटे में चल रहे निवेश से बाहर निकलें।

यदि आप एक विशेष स्टॉक में निवेश करते हैं या संपत्ति खरीदते हैं, लेकिन यह नीचे गिरने लगता है, तो बेचने और अपने नुकसान को अच्छा करने में संकोच न करें। यदि आप संपत्ति पर कब्जा करना जारी रखते हैं तो सिर्फ इसलिए कि यह आपके अहंकार को चोट पहुंचाएगा और आपके द्वारा लिए गए निर्णय पर गर्व करेगा, आपके नुकसान की संभावना है।

 

4. सफलता के लिए कड़ी मेहनत जरूरी है

उन्होंने भगवान शिव को प्रसन्न करने के लिए हजारों वर्षों तक तपस्या की थी।

वित्तीय शिक्षा : एवेन्यू और उत्पादों के निवेश के बारे में व्यक्तिगत शोध महत्वपूर्ण है।

अपने मित्रों, सहकर्मियों या टीवी चैनलों के सुझावों की मदद से अपने निवेश की जादुई रूप से बढ़ने की उम्मीद न करें। आपको अपने लक्ष्यों तक पहुंचने के लिए कितनी राशि की आवश्यकता होगी, यह तय किया जाएगा कि आप कितना कमाते हैं और निवेश करते हैं, आप जिस जीवन स्तर में हैं, वह आपकी जोखिम की भूख और लक्ष्यों का समय क्षितिज है। यदि आप पाँच विभिन्न स्रोतों से सलाह लेते हैं, जिन्हें आपके वित्त के बारे में कोई जानकारी नहीं है। सफल होने की उम्मीद मत करो। अपने स्वयं के अनुसंधान का संचालन करें और संपत्ति में निवेश करें जो आपको अपने लक्ष्यों तक पहुंचने में मदद करेगा।

 

5. परिवार पर आंख मूंदकर भरोसा न करें

रावण को उसके ही भाई विभीषण ने धोखा दिया;

वित्तीय शिक्षा : हमेशा वित्तीय सलाह के लिए परिवार पर निर्भर न रहें।

आपके माता- पिता वित्तीय सलाह के सबसे भरोसेमंद स्रोत हो सकते हैं, लेकिन यह आवश्यक नहीं है कि यह आपके जीवन स्तर के अनुरूप हो या बदलते समय के अनुरूप हो। इसलिए जब आपको उनकी बात सुननी चाहिए, तो अपने निवेश के बारे में निर्णय लेने से पहले, अपने स्वयं के अनुसंधान का संचालन करें या अर्थव्यवस्था और वैश्विक वित्तीय स्थिति पर नजर रखने में सक्षम होने के लिए एक वित्तीय योजनाकार को काम पर रखें।

 

6. अच्छा वंशावली सफल होने के लिए पर्याप्त नहीं है

रावण ब्रह्मा के महान पोते, ऋषि वल्श्रवा के पुत्र और कुबेर के भाई थे, लेकिन उनके स्वयं के कार्यों ने अंततः उसे परिभाषित किया।

वित्तीय  शिक्षा  : आपको धन विरासत में मिल सकता है लेकिन आप किस तरह निवेश और खर्च करते हैं यह परिभाषित करेगा कि आप कितने अमीर बन जाते हैं।

विरासत में मिली धनराशि धन प्राप्त करने का सबसे सरल तरीका हो सकता है, लेकिन इसे बनाए रखना या इसे विकसित करना आसान नहीं है। इसलिए आपको या तो निवेश के लिए अपना खुद का शोध करना होगा सही उत्पादों में या एक धन प्रबंधक को काम पर रखना, जिनके पास विशेषज्ञता है, ईमानदारी है और आपकी संपत्ति चुराने में दिलचस्पी नहीं है। महत्वपूर्ण रूप से, आपको अपव्यय पर अंकुश लगाने की आवश्यकता होगी क्योंकि यदि आप बिना पैसा खर्च किए रहते हैं, तो आपको यह जानने से पहले दिवालिया होने की संभावना है।

 

7. ज्ञान का सही अनुप्रयोग महत्वपूर्ण है

रावण एक महान विद्वान था, लेकिन जब उसेने सीता को किडनैप का फैसला किया था, तो उनके ज्ञान का कोई फायदा नहीं था।

वित्तीय शिक्षा : यदि आप कर निहितार्थ पर विचार नहीं करते हैं, तो ज्ञान का निवेश अधकचरा है।

यदि आप जानते हैं कि फिक्स्ड डिपॉजिट से प्राप्त आय पर पूरी तरह से कर लगाया जाता है, जबकि डेट फंड कम कर आमंत्रित करते हैं, लेकिन पूर्व में निवेश जारी रखें, तो ज्ञान निरर्थक है क्योंकि आप अपने निवेश को अनुकूलित करने में विफल रहे हैं। इसी तरह, यदि आप जानते हैं कि बिल भुगतान को स्वचालित करना आपको देर से भुगतान के लिए किसी भी दंड से बचने में मदद करेगा। या कि क्रेडिट कार्ड भुगतान पर रोल करने से एक उच्च ब्याज देना होगा,  फिर भी हर महीने बिल पर रोल करना जारी रखते हैं तो आपका ज्ञान व्यर्थ है।

 

8. नैतिकता और नियमों पर टिके रहें

रावण एक सच्चा सज्जन था। उसने सीता को कोई नुकसान नहीं पहुंचाया, और यहां तक ​​कि भगवान राम को लंका पार करने के लिए यज्ञ करने में मदद की।

वित्तीय शिक्षा : निवेश करते शॉर्ट कट का चुनाव न करें ; बीमा खरीदते समय पूरा खुलासा करें।

जब निवेश की बात आती है, तो जल्दी अमीर बनने की तकनीक काम नहीं करती है। न ही यह नियमों को तोड़ने के लिए भुगतान करता है, जब कर या मुनाफे की गणना करने की बात आती है। यह इसलिए है क्योंकि आप कोनों को काटने से बचाने की उम्मीद कर रहे थे उसकी तुलना में एक बड़ा जुर्माना देना होगा। इसके अलावा, यदि आप बीमा खरीदते समय अपने मेडिकल इतिहास को सही ढंग से घोषित नहीं करते हैं, तो आपके दावा खारिज किया जा सकता है। इसलिए नियमों पर टिके रहें और इससे न केवल आपको पैसे की बचत होगी बल्कि मान भी होगा।

 

9. किसी की संपत्ति का ध्यान रखना चाहिए

एक कुशल राजा के शासन में लंका समृद्ध हुआ।

वित्तीय शिक्षा : किसी के पोर्टफोलियो की निगरानी करना महत्वपूर्ण है।

आपने सही निवेश किया होगा और सही परिसंपत्ति आवंटन के साथ एक सही पोर्टफोलियो हो सकता है । यदि आप समय-समय पर निगरानी नहीं करते हैं और अपेक्षित कार्रवाई नहीं करते हैं, तो आप नुकसान के साथ समाप्त हो सकते हैं। यह न केवल गैर निष्पादित करने वाली परिसंपत्तियों और बाजार में बदलाव के साथ असंतुलन को दूर करने के लिए महत्वपूर्ण है, बल्कि इक्विटी-ऋण अनुपात को बदलने के लिए भी है।  

 

10. हर कोई के पास विविध हित होने चाहिए

रावण बहुआयामी था, कला, संगीत, कूटनीति और राजनीति में उत्कृष्ट।

वित्तीय शिक्षा : विविधता निवेश के लिए विविधता महत्वपूर्ण है।

संभवतः निवेश का सबसे अच्छा ज्ञात नियम, बाजार में उथल-पुथल के दौरान अपने पोर्टफोलियो को खतरे से बाहर रखने के लिए परिसंपत्तियों का विविधीकरण आवश्यक है। इक्विटी, डेट गोल्ड, रियल एस्टेट और नकदी का एक आयु- उपयुक्त मिश्रण अस्थिरता के दौरान नुकसान को कम करने में मदद करेगा क्योंकि अगर एक संपत्ति खराब प्रदर्शन करती है, तो यह अन्य परिसंपत्तियों के अच्छे प्रदर्शन से संतुलित हो सकती है।

The trap of Single Income & Single Identity

Single Income and Single Identity (SISI) is a new phenomenon in which professionals get trapped. A young Executive gets good paying job in a Multinational company, it looks very nice and comfortable initially, but once he get used to this life style it can be trap for the rest of life. Like the same high performing executive when reaches in his 40s/50s he may not be able to adopt the new changes and suddenly become a liability for the company for which he spent his whole career.

Take a case of a mouse put at the top of a jar filled with grains. Initially he was very happy to find so much of food around him so he doesn't need to run around searching for food and can happily lead his life. But in few days, as he enjoyed the grains, he reached to the bottom of the jar. Now he is trapped and he cannot come out of it. So he has to solely depend upon someone to put grains in the same jar for him to survive, he may even not get the grain of his choice and he cannot choose either.  If he has to live, he has to feed on whatever has been put into the jar.

This teaches us few lessons of life and Money Management:

 1) If we focus more on short term pleasures without understanding its future implications, it can lead to long-term traps

 2) Nothings comes easy in life and still if things are coming easy and comfortable we might be getting trapped into survival mode

3) if we find things easy and don’t use our full potential, we are losing it

4) Once we get trapped, we might not be able to come out of it and have to depend on someone else mercy for our survival.

5) If you don't take right Action at right time, you will finish what you have and will be in no position to bargain for future.

And finally we need to keep ourselves ready for future challenges and do not get trapped into a comfort zone without understanding its future implications.

Few Money Lessons from Lord Ganesha

In Hinduism, Lord Ganesha holds the unique distinction of being the “Prathama Pujaya”, meaning the first lord to be worshipped. Every occasion or religious ceremony starts with the worship of Lord Ganesha. In India, and especially in Maharashtra, the 10 days of Ganesh Chaturthi celebrations mark joy, fervour and optimism for the future. We will find almost every home/office/shops adorned with an idol of Ganesha because of the eternal lessons that Lord Ganesha offers. Let us learns some important Money Lessons from Lord Ganesha:

 1. Listen everything but be focussed in Mind 

When we plan our finances, there are two important points. Firstly we must get the bigger picture right and then move on the investment plan in an organized manner. In the financial markets, listening to different viewpoints is the best way to get the bigger picture before taking decision. Lord Ganesh’s large ears embody the willingness to listen while his small and keen eyes embody a mind that is absolutely focused on the goal. When it comes to financial planning, we need to thoroughly weigh all the options but once the decision is made, we must channelize all our energies to focus on the goal. That is what Lord Ganesha teaches us.

2. Flexibility & Adjustments

Ganesha is also known as Vakratunda- the one with a curved trunk. His trunk is very strong but is also very flexible and can pickup very small things also. Similarly as an investor if a new opportunity knocks on the door, we need to make adjustments to reap additional benefits. We should regularly review our portfolio and keep looking for better opportunities. We should be flexible in terms of asset diversification, timeline adjustments and the amount of investment based n circumstances.

3. Have thirst for knowledge

Lord Ganesha is believed to have documented Mahabharata with great speed and clarity  this represents the highest levels of intellectual curiosity. Similarly we should remember the biggest investment is in knowledge and self improvement. That is an important lesson in the dynamic world of financial markets. Many variables/indicators keep on changing which means that we need to keep on expanding our knowledge base and incorporating new ideas and techniques. That is only possible with a thirst for knowledge. It is this thirst for knowledge and intellectual curiosity that can empower us to manage your investments and finances in better way. Keep learning about new investment products, new investment ideas, new methods to achieve financial goals.

4. Take Calculated risk

Risk taking is a must because without risk there is no return. The sumptuous belly of Lord Ganesha represents the risk appetite. It also represents the need to know the difference between risk appetite and risk capacity. The particular instance when Lord Ganesha circum-ambulates his parents (Lord Shiva and Goddess Parvati) as representative of the universe is a classic instance of letting your head rule over your heart. Lord Ganesha teaches investors to measure their actions by their risk capacity and to be driven by clear analysis.

5. Be Humble

Despite being supreme power Ganesh have a little mouse as his vehicle. It is always at his feet. Here Ganesha tells us to keep our temptations and desires in control. When we manage to get a few investment ideas right the immediate response is to become supremely confident. Lord Ganesha constantly reminds us the lessons of humility. As it ever happens, if not kept in check, a tiny mouse can bring the house down.

Lord Ganesha’s Visarjan on tenth day (on Annant Chaturdashi) also teaches us an important lesson that all good things are ephemeral. The message is Good times don’t last forever but good ideas and strategies does.

This year as we celebrate the joys of Ganesh Chaturthi, Let us also spend a moment to reflect on the important Money and life lessons of Lord Ganesha.

 

 

This Raksha Bandhan Secure your Sister Financially

Raksha Bandhan the festival of brother and sister So have you already decided a gift your sister if not then what about making this Raksha Bandhan a special one with all the care and responsibilities, and gift her financial security to make her future safe and prosperous. Isn’t it a nice idea?

We all know that this festival is to protect our sister from all the difficulties hence financial independence could be the best thing to gift her. In this post we are giving some ideas which can be good for her to get rid of financial difficulties. In this Raksha Bandhan, Let’s surprise our sister with some healthy financial gifts and make a promise to secure her financially.

Here are some of the best ways to protect her financially:

1. Secure her Health : We all vow to protect our sister in the whole life, especially this is the promise of every Raksha Bandhan. So let’s gift her a health insurance by paying the insurance premium on her behalf? It would cover her from high medical expenses and provide her health and even life security. 

2. Invest in her Name : generally we give gift to our  sister on many occassins. Why not start a monthly investment as SIP rather than gift in her name in place of amount we  spent on buying a gift for her. We can add her as joint holder and start an SIP on her behalf to manage her finances at our own end. This investment shall further grow and help her achieve financial independence in the future. 

3. Plan for her Future: We all plan for our future financial dreams, this Rakhi let’s plan for the dreams of our sister. We can plan for her financial security to provide her real protection. If she is younger then we should plan for her higher studies, her marriage, etc. We know that our parents are there to plan all these, but if we can contribute even a little, it would definitely mean a lot to her. 

4. Buy her Gold : Females are crazy for jewellery. It brings so much happiness that it can be noticed on their faces when they receive any gold item as a gift. So, why not make your sister happy by buying her an investment in gold? But, physical gold is less secure than paper gold so we can invest in Gold bonds, ETFs and Gold Mutual Funds which are directly linked to the price of gold and  help her achieve prosperity in the future. 

5. Payoff her Liabilities: If your sister has some loans running, we can lessen down her financial burden by paying off her liabilities fully or partly. Buying her a gift, of course brings happiness and smile on her face. But, if we reduce even a small part of her financial liability, her happiness will be a lot more and also reduce her worries.

So let’s make promises to your sister to secure her from all possible financial hindrances in her life, and start protecting her financially. We can make this auspicious festival special by doing something differently.

 

Teaching Kids about Money and Finance

Kids are innocent and they learn very fast. If we make them understand about money and finance in their childhood and teach them about good money habits, they will do well as they grow and will have inherent good money habits. This will help them in their future life. Let’s understand how to teach them about money and finance.

1. Piggy Banks: By gifting them a piggy bank we can make them learn about importance of savings. They can buy toys or other things by first saving and then spending.

2. Games: there are various games like Monopoly, Game of Life, Vypaar etc, which we can play and make them understand how money works and how transactions take place.

3. Open An Account: We should open a saving account in our child’s name and let them deposit money in the account and understand about interest and how money grows and also other investment product.

4. Budgeting: Involve your kids in home budgeting exercise, so as to make them understand about income and expenses, essential and non-essential expenses etc.

5. Shopping: Take your kids for shopping. This will make them understand about bargaining, quality, and prices of the products. We can further explain them about wants, needs, comforts, and luxuries and how to maintain fair balance between them.

6. Discounts & Offers: When we are shopping online or offline we can explain them about various deals available at particular time and how to save money by using discounts/deals and offers.

7. Rewarding: We should reward our children to encourage them to save and also when they contribute (by controlling their expenses) in home budgets.

8. Inflation: We need to educate our grownup Childs about impact of inflation, purchasing power of Money and various investment products.

9. Contingencies: Telling them about various scenarios of life and how various situation requires money will help them to understand about uncertainties in life and how to tackle them.

10. Practice then Preach: What we teach them should also practice ourselves as practising the things makes much deeper impact then just teaching.

Small but good money habits can make a significant difference in the future life of a child, so teaching them in their starting will help them to get in there unconscious mind and use it when they need to take decisions about money in future.

Lessons and Life after COVID-19

Today the whole world is facing a unique challenge due to COVID19 virus. Just three months back If someone has told us that the whole world will stop and people will be afraid of meeting other persons, we would have been laughing on them, but today it is the truth. But every dark side has brighter side too, so let’s look at what we can learn from this crisis and how the life would be after we sail through this challenge.

1) Always act before it is too late. Starting the lockdown early is perhaps the biggest lesson for controlling the spread of the virus. Start your investment journey early to control poverty and create wealth.

2) Even if ‘Risk’ looms large (next to your home) don’t go out, just stay put. Even if market volatility troubles you, don’t sell Just stay put.

3) You may be Rich but if you are Careless, Complacent and over confident the Virus or the Market will smash your ego and leave you in tatters.

4) Self-control and Resolve (सय्यम और संकल्प) are the key to reach your goals of defeating the Virus as well as Poverty.

5) Doing nothing is an important strategy to keep the virus away and keep your healthy. Similarly in Investment also sometimes Doing nothing is the best strategy.

6) Nature does not discriminate, whether it is the battle of health or wealth. Every community and Religion has Equal Opportunities to create wealth as well as catch the virus.

7) Compounding is the 8th wonder of the world and provides huge gain in wealth creation but huge pain by virus spread/creation.

8) Breaking the Chain is the only way to stall the virus. In investing too breaking the chain of SIPs will stall wealth creation.

9) First worry about life, then the world (जान है तो जहान है). In Investment also first focus on Safety, Liquidity and then on Returns.

10) Politics is the biggest enemy during these times. Like wise Speculation is the biggest enemy of investing. Like Politics Keep Speculation at bay.

11) Hygenie and Social Distance are important points to fight virus similarly porfolio hygine(simple and clean portfolio) and keeping distance from risky instruments is good for wealth.

12) Our immune system is the best protection against the virus. In wealth creation immune system comprising of Habits, Actions, Perseverance, Patience and Yearning for your goals (HAPPY) is best for wealth creating and thereby protection against inflation.

And finally I end with a small story. Once an 80 year old man came out of ICU and doctors told him that he is alright now and this a bill of Rs. 10 lakhs for 10 days in hospital. The old man cried, seeing the old man crying doctor said don’t worry if you don’t have money we will waive it off. For this the man says No, I am not crying for the bill I can pay all dues. I am crying because I have been breathing God’s Air for 80 years and never paid for it and now it takes 1 lakh per day in a hospital to use ventilator, Do you know how much I owe to God. I never thanked God for that.

When we breathe air freely we never take it seriously but when we go to hospital breathing oxygen costs money.

When we change the way to look at the things, the things we look at CHANGE. Gratitude is a strong, powerful and empowering emotion, we should be more grateful for the things we get in life.

Gratitude improves our immune system and makes us strong on the other hand stress makes us weak.

WHEN WE ARE GRATEFUL FOR THE THINGS IN OUR LIFE, WE WILL HAVE MORE THINGS TO BE GRATEFUL FOR.
Be Healthy and Safe !!

Got Money Phobia? How should we deal with it !!

Money and personal finance matters are very important however many of us fear in dealing with them and are clueless at the time of emergency, so let’s discuss what are the common fear most of us have and how can we overcome from these fears.

1. Stock Market is very risky: I will lose my money

Many of us feel that stock market is a very speculative place and there are very high chances of losing money. Those who have lost money in past or have no knowledge/experience have very high feeling about losing money in the market.

So, How to deal with it:  If you don’t have much knowledge then it is better to invest via mutual funds not directly through stocks. Still if you want to invest in stocks, it is better to first gain knowledge of the subject or take the help of a financial adviser. Also remember not to follow tips from anyone blindly. It is always wise to invest for the long term and not be influenced by short-term flux or churning.

2. I don’t have enough money to face a Medical Emergency

Many of us fear that if there is some serious medical issue in family, they may have to spend all their money to deal with it. It is actually true to some extent looking at the high cost of hospitalisation and medical care and if someone have critical illnesses or accidental injuries.

So, How to deal with it: Health Insurance is the answer. We all should have a basic health plan of, say, ₹5 lakh and get a bigger top-up plan of, say, ₹20 lakh with a deductible of ₹5 lakh. This will be cheaper than a single cover of ₹25 lakh. We can also create an emergency fund along with the basic health plan to cover the other expenses. It’s also important to buy critical illness and accident disability insurance plans which comes at small premiums and cover only those cases.

3. I won’t be self-dependent after my Retirement

More than half of Indians fear they will not be able to support themselves after their retirement, with 70% people expecting their children to support them, says one study.

So, How to deal with it: Proper retirement planning is must for every person. We should start saving more of our income by cutting down on non-essential expenses. Further we should ensure to invest in the right avenues so that our corpus is growing and able to beat inflation over the longer duration. It is always wise to take the help of a financial adviser. Also, we can explore additional sources of income to supplement our existing income.

4. I am in a Debt trap

This is a world of EMI and Credit cards. We keep on buying things through EMIs, sometime even if that is not required. Upgrading to a new IPhone or going for an exotic foreign vacation so as to put the pictures on Facebook/Instagram is not very uncommon now days. This temptation to buy on credit often results in several loans and falling into a debt trap.

So, How to deal with it: Be a sensible buyer is the KEY. Everything in the market is for us only, but it does not means that we should be buying anything or everything. We need to ensure that total EMIs should not be more than 50% of our income. If we already have lot of loans, a proper plan should be prepared to repay them, starting with the most expensive ones like a credit card bills or personal loan, and moving to car and education loans. Few Loans like home loan and education loans have tax benefits so we can continue however if the rates are high or we have capacity we can prepay the same.

5. I will be fired from my Job

In the current competitive market fear of losing job is very common, technology is replacing humans and many people become outdated/redundant in this kind of environment. Economic recession, cost cutting are also other reasons for people fearing loss of job. So If you are worried it may be due to one or more of these indicators you may have witnessed.

So, How to deal with it: we should always have emergency corpus to meet our regular monthly expenses in case of loss of jobs. We can have that corpus for 3 months to 1 year depending upon which industry we are working with.  Further we should keep on updating our skills and have knowledge about what is going on in our industries and sector so as to be ready to face these eventualities.

Finally the simplest way to manage these kind of financial fears is to be organised and prepare well for events and eventualities. The help of experts is always better if we don’t have much understanding of the things.

Letter for Investors (Hindi)

Letter for Investors

Ten Financial Sins, and how to beat them

Everyone has some financial bad habits or we call them as sins which stops us to be wealthy and financial independent, let us find them out and also the way to comes out of it.

1. GREED

We all want to earn high returns, but understanding the risks is not everyone’s cup of tea. For example: Investing in stocks is risky but can be very rewarding if done carefully and in a disciplined manner. But dabbling in futures and options is usually ruinous for the small investor.

How to beat it

It is better that we should buy equities through mutual funds, if we don’t have much know. Futures and options are not for common investors.

2. FEAR

At one side greed makes investors overlook the risks involved and on the other side fear makes people blind to the opportunities. Fear of losing money makes investors shun the potential of equities and pushes them to buy instruments which offer assured but poor returns.

How to beat it

We should do proper asset allocation based on our financial goals and then stick to it. Historical data has confirmed that periodic rebalancing of the portfolio can yield better returns rather than just sticking to some fix return instruments.

3. ENVY

This is a very common human nature, we get enamoured when we come to know about our family & friends investments and the high returns they earned. And by this we start copying their investments so as to get same benefits.

How to beat it

We should always remember that every person is different so as their needs and investments, Following in somebody else’s footsteps may not always deliver the desired results. Past performance of an investment option is not an assurance of future returns .Investments should be customised to the needs and risk appetite of an individual. What worked for someone in a certain situation may not work for everyone.

4, WASTEFULNESS

In today’s consumerism wasteful spending is a common problem, especially for youngsters. Online shopping has further fuelled this malaise. Young people want to buy the latest gadgets and new apparel, without thinking about it’s the impact on their finances.

How to beat it

If we are earning then we would be spending also but it should be within limits. We can set a budget to ensure that we don’t overspend and stick to it. We can us budgeting apps which can send alerts if we spend beyond a limit on any head.

5. PRIDE

Some time we get emotional to certain investments with a feeling that selling an investment at a loss would make them appear stupid. And then we try to justify that it was a right decision and are willing to hold it till it recoups its losses.

How to beat it

We should never fall in love with our investments It is silly to let our ego define your financial choices. If a stock has no future, dump it and cut the losses. If we continue holding it, the losses will only grow bigger.

6. BLIND FAITH

Sometimes we get into the trap of a smart salesperson who miss-sells financial products for his own benefits/targets as we believe too much on some people and don’t try to find out the nitty-gritties of the products. .

How to beat it

We need to ask questions and do our own research and don’t take a decision in a hurry or because there is a deadline approaching. We should spend some time to compare its features, read up the terms and assess its utility in your portfolio.

7. LUST

The temptation to make easy money can make even smart people part with money or bank/credit card details. Now day’s online frauds are very common; fraudsters cheat people by promising them a huge share in their inheritance, stock tips or bargain offers on their credit cards/insurance policies etc.

How to beat it

Always remember that there are no free lunches in this world and if someone is offering most probably he is a cheat. We should never believe fraudsters who promise money for doing nothing.

8. IMPATIENCE

In today’s world we all want the results at the click of the button. However in the investments time is the key, impatience prevents us from earning high returns. Early withdrawals from the investment kitty cuts down the power of compounding. Selling off a stock or equity fund too soon will help book profits but give us a serious wealth. 

How to beat it

We should invest with a proper plan and time horizon. Don't sell as it has given some profits, Assess the real reasons for selling and Sell only if we need the money or have some better options to reinvest the proceedings.

9. LAZINESS

Procrastination is a common problem and many times we feel that things will get right on its own. However delaying investments can cost a lot. If our money idles in a savings bank account, it loses value. In five years, even a modest 5% inflation will reduce the value of ₹1 lakh to less than ₹78350.

How to beat it

We should start SIPs in mutual funds and sift the extra money from saving accounts to liquid/ultra-short term funds. Now days it’s very easy to invest through online platforms and we can do in automated way. This will ensure that the amount gets invested every month.

10. FORGETFULNESS

It is a very common problem that we forget paying our bills on time which leads to some delay penalty of ₹100-200 to serious penalties running into thousands of rupees. If we miss an EMI or a credit card bill, we will be slapped with interest, late payment charges and also the taxes. But if we miss the tax filing deadline or an insurance premium, it can be in serious issue.

How to beat it

If we can’t remember or disciplined to make payments on time, then we should opt for auto debit facilities offered by most of the billing/credit card companies. We can also put alerts for important dates like insurance premiums and GST/IT returns etc. Just as automating SIPs and recurring deposits ensures that we don’t miss investment targets, putting bills on auto payment mode means you don’t miss payment deadlines.