Financial Wellness – Awaken the energy (Shakti) within !

We often talk about the need to be well – financially ! This article – written during the Navratri – calls for action.  I firmly believe, the woman of the home must take this up since there is an opportunity to feel empowered and also put the expertise into action.

Let me begin with some statistics (Source: Economic Times, Sep 25, 2017, Article by Pooja Khanna).

The study (conducted with 100 well-educated women) found the following:

  • 92% of the women admitted that all financial decisions are taken by the male members (read: father and husband) of the family
  • Most respondents had poor level of financial literacy and the investment choices rarely went beyond bank FDs and small savings options (e.g. PPF/NSCs).
  • 83% of them had little or no knowledge of mutual funds and about 77% of them had more than Rs 150,000 cash idle at home !  (A typical short term/liquid fund would provide about Rs 10,000 annually on such amount)
  • Almost all respondents (98.8%) are repaying a loan but only three out of 10 understand how EMIs work. (Over 70% believe if they take a loan of Rs 10 lakh for 10 years, after five years the outstanding would be roughly Rs 5 lakh).

Another perspective on the long term value of money:

Read this article from one of the best portals in India (my point of view).   I won’t summarise article findings in here and have captured a compelling visual from it above. 

Key findings & implications for you :

  • While,  all of us learn the future value of money, only a few of us understand the true power of it. Even those who understand it, hardly any put that knowledge to good use.  
  • We need to find suitable (risk based) investment options. This also needs to be adjusted with inflation since if we stick to options which give as much as inflation, we are NOT growing the value of money but we are just maintaining it !
  • It pays to invest in investment consultants. Also review the best portals to validate your investment guides (I have seen far too many people going for a new MF (Mutual Fund) launch or a 1-star rated fund)
  • Be aware of the conflict of interest. MF advisers will never guide you about “Direct MF”.  However, direct MF can give you (often) 30 to 40% more value on the corpus if you consider longer term value (>25 years !). Contact me if you are lost and need more information.
  • Personally, for me, this has been about “executional excellence” and not about “smart fund or stock picking !”.  It is best to leave the selection to the experts. We must focus on “executing our plan” !

We all need to leverage the “Shakti” within and go after the financial wellness, with a long term perspective (long term = 25 years or more).  Go for it ! 

Gunjan Trivedi

Life Coach

gunjan@wellness-space.net

PS: I push people to do this.  Often, they wonder if I have any financial stake in this approach.  Only a few years later they come back with such a wonderful note or words !

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2017-09-25T02:56:13+00:00