Dussehra is celebrated to honour the victory of good over evil with much pomp and fervour. Let's review some key financial lessons to imbibe in this festive season.
1. Financial Discussions with Family - Investment decisions are usually very private decisions. Most of us don't enjoy discussing this with our family or even our partners. However, it is imperative that your near and dear ones especially your partners are aware of all the investment decisions. This way, in the unfortunate circumstance of a calamity, your family is aware of the investments you have made. Every year, deposits worth Crores are written back by Banks because they are not claimed!!
2. List all your assets - A simple excel worksheet with all the assets and liabilities listed and updated regularly is all one needs. Whether it is knowing the stocks in your kitty or the type of funds that form your Mutual Funds and ULIPs, knowing exactly what you are putting your money into is a habit that is highly beneficial for all. Simple and easy for you to review as well as for your family to be aware.
3. Invest for Goals - Growing up we bought LIC policies as investments because our "uncle" was an agent and/or our parents told us to invest. This continues to be the case for most. Investing for the sake of investing doesn't take you anywhere. So set your financial goals and ensure that your investments are directing you in the right way. Imagine not planning for a holiday trip and landing up in deep winter in Iceland with beach clothes!!
4. Review your Insurance - Insurance is one of the few things that most people only look at as a security blanket. Most people don’t think twice about the insurance they opt for or the cover that they have chosen. Review the insurance policies that you own and reinvesting into newer, better options is always a practice that you need to follow. Ensure you have Term policy for life that adequately covers your family, Medical Insurance and Critical Illness Cover.
5. Patience and Perseverance - The festival of Dussehra marks the victory of good over evil. One of the reasons Dussehra is celebrated is for Lord Rama killing Ravana. Even when Rama knew Ravana had abducted his wife Sita, he planned and ought the war with patience and perseverance and never looked for short cuts. In your life too, you may face financial hardships or you may find it difficult to avoid unnecessary expenditure. As an investor, you may get impatient while watching your money grow or market ups and downs can test your patience to its extreme forcing you to quit investing and derail you from achieving your financial goals. We need to learn to be patient and perseverant at all times.