Over the last four weeks, Cricket seems to have been displaced from our collective mindspace by another sporting event, arguably the biggest of them all, the Football World Cup.
This once-in-four-years event converts existing casual football followers into aficionados, as well as creates football lovers where there were none, while of course, football fanatics become self-styled experts.
This Diwali, we were back to the “Old Normal”. But this article is not about this Diwali or how it was, but more about a fascinating aside that unfolds every Diwali – the late night card parties. A popular (and simpler) Indian version of Poker is played in these parties, called Flush or Flash in English but ubiquitously known as “Teen Patti” among most Indians.
A ring-side view of a Teen Patti game in progress provides fascinating insights on human behavior under risky conditions. While there are many nuances to the game, at a simplified level, most Teen Patti players that you will come across can be categorized into broadly three types. Interestingly, these types are also found in investors in the market.
Read about these types and how you can identify what type you are, in our latest article, published on Moneycontrol.
In our journey as financial planners, one of the biggest constants that we see in most customer portfolios is this – they are either already real estate heavy, or customer high-priority goals include buying additional homes – as an investment.
This must come as no surprise, since an overwhelming 84% of all household investment assets in India (RBI Household Finance Committee Report, 2017) are in this favorite asset class – no prizes for guessing – Real Estate.
That being the case, it may be prudent to consider these five investment risks associated with this asset class, since each one of these risks have the potential of causing significant damage to your financial independence journey.
In the last few years, there is an increasing focus on financial independence as a personal financial topic of interest. Financial Independence (or Financial Freedom) is the financial state where one has acquired enough passive income (through investments), thereby not requiring one to have to work to earn one’s living for the remaining lifetime.
World-wide, the concept of FIRE (Financially Independent, Retire Early) has gained a lot of traction, but Financial Independence is a relatively new and less understood concept in India.
The things to do to become financially independent are fairly simple and not rocket science. But many a times, not doing the wrong things is more important, rather than just doing the right things. What I want to share today below are three mistakes that can have serious consequences on one’s quest to achieve financial independence. While they may be repairable, the damage caused to the journey can be severe. Our latest article published on Moneycontrol.
At its simplest, Financial Independence means “having enough money so as to never work again for the rest of your life”. But as you would agree, neither is life simple, nor is it as predictable and straight-forward as one would like it to be. This effectively means that as you go along your life journey, your definition of what Independence means keeps changing as your goal posts keep shifting.
That said, it is not rocket science, and it is something that everyone should aspire towards, not just for the financial security, but for the mental doors that it opens for you when you discover that you are no longer working for the money.
Based on our journey, I share with you below a few simple principles that you can follow to get onto, and stay on this path. But beware, what is simple to understand is rarely easy to do, and requires discipline, patience and the ability to say no to your ego.
While we make extensive plans for most eventualities, something suddenly happens that takes us by surprise and throws all our plans haywire. Take the last 12 months itself as an example.
In a way, we live our lives largely assuming things are going to be peaceful and are usually well prepared for peace-time events. We do make our plans and are prepared for some surprises, but it is when “war-time” strikes our lives that we suddenly find ourselves head under water and gasping for breath.
Such times are also the best time for us to learn about our resilience, our capabilities, our strengths & weaknesses and give us the best clues about what to change about ourselves, hopefully before the next “war” hits.
So, what are some of the “war” situations that has struck your life and how prepared were you? And how can one be better financially prepared for when “wars” strike?
Read our latest article, published on Moneycontrol.
As we get into the second quarter of 2021, life seems to have come full circle, as they say, and we seem to be well into a 2.0 version of last year. But just a few weeks back, the memories of 2020 and the troubles wrought by the pandemic seemed distant and fading. Life had more or less returned to normalcy in most parts, and people seemed to be mingling as though social distancing was a bad dream.
While the memories of last year seem short-lived, I have a different view on this – keeping the experiences of the last 12 months alive in our memories and better still, taking actionable insights from it to prepare for the future, may be one way of being safer and more secure in a future increasingly turbulent and uncertain. So, as we go into a vicious relapse, it may be prudent to quickly assess how each one of us fared during those stressful times.
Most of you would have heard of a “Stress Test”. In personal health, a stress test assesses the state of your overall fitness and particularly your heart. Simply put, a stress test simulates the health and strength of any system that you wish to test, through appropriately designed procedures. Similarly, one can design a stress test to check how prepared one is financially to endure a financial crisis, like what happened in the last few quarters.
Answering this simple six question test below will be a rudimentary yet effective way to check how healthy your personal finances are. Our latest article, published on Money9.
Our behaviors towards money and the money decisions that we make at various junctures in our life are influenced by our experiences at a formative level, right from childhood.
Am sure that this comes as no surprise, after all, money experiences are also a part of the various influences that form us through our life. Where I see a bit of a twist is that while my family was a fairly orthodox one, the women in the family were curiously still quite involved, and to some extent, even dominant, in some of the money decisions that were taken.
How do you plan for your financial well-being? Are the priorities the same for everyone or does it differ depending on your unique circumstances? In our experience over the years, we have noticed that a one-size-fits-all approach does not work when it comes to your finances.
When it comes to single women specially, their circumstances are different and to an extent unique, driven by not just their needs but also the prevailing laws, and therefore need to pay attention to the following.
Have you ever wondered, when you are planning for your future, why certain assets evoke so much loyalty and attachment? Come to think of it, you may have invested in it dispassionately in pursuit of good returns but somewhere along the way it has acquired a persona of its own.
Real estate and gold are two such assets which have a huge emotional connect. Gold is understandable, as in our culture, if you are selling physical gold, people assume that you have hit really hard times and it is never easy to part with physical gold. Other forms of gold like Gold ETFs etc. luckily are easier to deal with.
But what about real estate? I cannot think of too many people putting their life savings into a financial asset and staying the course despite hiccups and abysmal returns. Why then is real estate treated differently?
Read our latest article, published on Moneycontrol