It’s your Money.. so take care none else will!!!
Amit : Hey! How are you? It has been quite sometime now since we met.
Deepak : Truly, have not got an opportunity to meet up with many of the friends since long. I have been busy .
Amit : So what is the news on your side? I have been busy as well with work and managing the household.
Deepak : I am busy with work and have been now quite seriously thinking about managing my personal funds for long term. With the investment market filled with scores of avenues. I am left confused as to how to strike a balance between a good growth in investment with reasonable risk. Though there are many persons giving a free idea as to where to invest, I feel that these ideas are primarily driven by a feel good factor of the past experience rather than by a logic and applicability to me. All this stops me from relying on these advises.
Amit : Well Amit, you have taken the first step in planning your investments by unconsciously adhering to an important DON’T of planning your Personal Finances. And that indeed is the biggest mistake most of the people do! As the saying goes, “Practice before you Preach”, Most of the Idea Preachers are ones who will themselves never stick to their own ideas as far as managing their own investments is concerned.
Deepak : But what do I do now, as it is important for me to cater to my present and future financial needs. I want to see the growth with reasonable risk to cater to these needs of time.
Amit : Well Deepak, You have said it all! You have needs that are spread over a period of lifetime and you have idle and unused money at present in the form of funds for investment at a level of risk after meeting your expenditure. It is important to first understand these – Funds (Surplus), Time, Financial requirements and Risk apetite as these are the factors that would form the basis for the approach for your Investment decisions.
Deepak : Amit, unlike the others you have strengthened my thinking and indeed this will reduce the cacophony prevailing in my head!
Amit : Do you think that the free ideas that come to you are based on the these factors? Even if they were, how do they know what your needs are and how much risk bearing capacity you have? How can they suggest to you something without even taking time to understand your finances and attitude. So the best is to stay away from such free advises, as the money is yours and none else!!!
J Importantly :-
- Ø Know your Goals in life so that you can ascertain it’s monetary cost
- Ø Do not take unprofessional advice. Seek information from a qualified professional.
- Ø Start Early, Drive Slowly, Reach Safely!
