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Financial Planning

  • The most important factor for the Compounding Magic to work

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    In all my years of experience in the financial advisory profession, I can surely tell that the science behind getting wealthy is very elementary. There is no secret to getting wealthy. Getting wealthy is not just confined to people who are earning high incomes or doing business or investing in properties or taking bets in stock markets, commodities, foreign currency, etc. Earning big money is a skill, but managing that money well is even a bigger skill. Even an individual with average income can become wealthy.  Let me show you how and prove with numbers: A common Analogy to Compounding […]

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  • What should one aim to be – Rich or Wealthy?

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    People hear inspiring rags to riches stories many times. But there are also stories where people have gone broke, really broke. Yes, it is true. Take the case of Bollywood film stars. They earn crores, own big houses, drive swanky cars, travel in private jets, wear branded clothes and accessories. They enjoy all the luxuries in the world. It is difficult to imagine that they can ever get into any financial trouble. Heavy debt and financial mismanagement have landed many celebs in financial soup like Bhagwan Dada, AK Hangal, Bharat Bhushan, Amitabh Bacchan, etc. We nowadays hear stories of even […]

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  • Be a Blessed Shatayushi

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    “*Shatayushi Bhava” – A blessing or a curse. A few years back I had written an article on the increasing life spans of Indians and whether we should consider this as a blessing or a curse. Blessing because we get to live longer than our ancestors but at the same time it could be a curse if that increased life span is spent in ill health and financially weak. *Shatayushi- One who lives for 100 years. Gerontologists (Scientists who study life spans) all over the world have written enough about the subject to prove that long life span is a […]

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  • Declutter your Portfolio in this Lockdown

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    These trying times have taught us to slow down and self-reflect on many things in our life. It has signalled to act on certain tasks which we may have procrastinated for a really long time. Like for e.g., people are taking some time out to declutter their homes. It is actually very therapeutic.  It is like decluttering our minds because we then have to focus on lesser things. Less is more! This virtue can be extended to our financial life. This lockdown presents an opportunity to declutter your investment portfolio. Why cleansing is necessary? In my professional life spanning over […]

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  • Two most important financial lessons to learn in the Covid-19 Lockdown

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    Covid-19 is one of the worst humanitarian crisis mankind has faced in recent times. Under a lockdown, we all are facing fear and anxiety in the wake of uncertainty. However, this ironic situation of a lockdown can also be viewed through a positive lens. It has taught us many things – to slow down and reflect, appreciate nature, optimise resources, value relationships, etc. And, there are financial lessons to learn as well. First and foremost: Emergency Fund: The primary thing today for mankind in these precarious times is about survival. When will the lockdown end? Will it extend another month, […]

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  • Corona Virus, Yes Bank debacle, Economic Slowdown. Here is how to deal with negative news as an Investor.

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    Nowadays, almost every 9 out of 10 messages on WhatsApp you will read would be related to Corona Virus. There are also videos where the self-proclaimed experts would talk about home remedies and preventive measures to deal with it. Further, you will see debates on media channels about how Corona Virus is adversely affecting the global economy including India. Then we have the Yes Bank fiasco which has shaken every common man’s trust in depositing money with banks. The power of social media amplifying bad news is unprecedented. Everyone you know is sharing the same message on different groups. A […]

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  • How Technology can help You grow your Wealth?

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    Mobile apps in our smartphones have become a ubiquitous part of our everyday lives. They are fast and convenient. Apps are just a swipe away – Amazon for shopping, Ola/Uber for travel, Zomato for food orders, etc. However, this high dependence on mobile apps is also enticing us to spend more. Add to that, the discount offers and cash back deals are too hard to resist. We aimlessly spend gobs of time scouting for attractive deals and buy that extra jacket or footwear just because there is an attractive discount offer. As automation induces human behaviour to spend money, at […]

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  • When a six month Emergency Fund may not be enough?

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    An emergency fund is an essential buffer to tide over in unforeseen circumstances. You need a safety net when life throws those harsh bouncers at you. Most financial advisors advocate an emergency fund equivalent to 6 months living expenses. Living expenses here include only the necessary costs such as grocery, utility bills, EMIs, insurance premiums, children’s school/tuition fees, etc. While 6 months is taken as a rule of thumb, it cannot be a blanket solution as personal situation varies from individual to individual. Here are a few scenarios which if relevant to your financial life would require you to beef […]

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  • How can you create a separate Vacation Fund for frequent getaways

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    Think about regular recurring expenses and travel has become one. Frequent getaways are common today for the millennials to unwind. This is unlike the older generation which waited till retirement to plan an international trip or travelled just once in a year.  Today, short vacations are common, be it an adventure trip or just relaxing in a resort. These are undertaken 2-3 times in a year and the cost of these short trips start from a minimum Rs.20,000 each. If one stays in a more than decent resort, the cost can go up to Rs.50,000 for a family of four. […]

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  • How to Financially survive a Layoff?

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    With India’s top airline Jet Airways going bankrupt, thousands of employees were laid off. Layoffs today are for real. Be it in a small entity or a big business with giant market share. Whether a company is in financial distress or wants to cut costs or simply not satisfied with the performance of its employee, the writing on the wall is not obvious. One can never be prepared for a job loss. Not mentally. And 99 per cent are not prepared financially either. The thought of a pink slip would not even cross the mind when the going is good. […]

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