Let me ask you three tough questions…
Please concentrate hard…
- Which profile suits your personality?
a. Live life in the today/now – 100 %
b. Live life in the now 50 % and plan and prepare for the future 50 %
c. Live around 20 % today and rest always thinking for the future..
2. If your bank account is credited with 1 lakh bonus/profits unexpectedly, you will…
a. Spend everthing immediately
b. Spend around 50 % and invest the rest for your future goals
c. Invest the entire amount for the future.
3.Whats the size of your waistline ?
a. Below 30 inches
b. 30-34 inches
c. above 34 inches !!!
Well, don’t worry, you are not alone. These were actually simple questions right? Not much stress, good.
Over time we have been lead to believe that money, finance, savings, investment are complex, confusing and a pain…but are they ?
Conversely, they are simple, easy to understand and a lot of fun, provided you do your homework right and keep it simple…
The above three questions also depict few hidden jewels of whats required not only to be successful as an investor but also to enjoy the ride !!!
Question 1 talks about doing your homework on where you stand (income, expenses, assets and liabilities) and take steps accordingly to save and invest for the future.
Question 2 talks about sharpening your skills at investing, or/and taking help from professionals in the field to achieve maximum out of what you have, to know where to invest and to do well, so that even the monthly salary (investible surplus) which hits your bank seems like a lottery to you!!
Question 3 talks about how you profile your self – who you are and what should be your asset allocation, based on parameters like your risk appetite, goals, etc. This makes your investment journey smooth and lots of fun…
Simply put – keeping it simple always helps in your financial life journey…a perfect method to keep it simple yet effective is to arm youself with a financial plan. It will take care of the present, the journey and the destination.
Author: Mr. Nirmal M Jain | Mr. Nirmal M Jain is a Co-Founder at HappyWise Financial Services. He has over 15 years of experience in the Financial Planning Sector. He has been a mentor to several people, and has helped them to understand investments, stocks, mutual funds, financial planning, personal finance and above all his favorite term “The Power Of Compounding!”.