If you want to be rich & happy… and remain so,
Consult.
A majority of people among the middle class take financial decisions individually and seldom consult experts or follow them. This has become their way of life, a habit. This happens in other spheres of their life too, apart from the financial one.
Decisions taken individually are based upon little or distorted information, myths and traditional dictum. That is why, such decisions are liable to be very risky.
The people with rich and open mindset approach consultants who are expert in the related field to base most decisions. From these experts, they know all the options available, many still unknown to them, the pros and cons of each option, the kind that suits better for their goal, etc., and then take a mature decision. That’s where the people with rich and open mindset score better. Please read this again: it is not the rich people but the people with rich mindset as well as open mindset that score better. (i). Rich Mindset allows one to hire a consultant and pay him for his consultancy consisting of knowledge and experience. (ii). Open Mindset allows one to unlearn useless myths acquired in the past and learn new ideas and concepts that help make life better – peaceful and happier.
Where do people err? We routinely see people around us doing the following:
Some of the Blunders:
o Buy a tempting life insurance policy that seems to give exceptionally high returns per month during retirement which is 15-20 years from here and realize peanut return actually in their retirement years.
o Impulsively invest ₹10-20 lacs (INR Rupees 1-2 million OR US$ 15 to 25,000) into a seemingly lucrative online data entry website and then stare at the closed down website/ business by the fly-by-night operators.
o Start trading in Stock Market with a temptation of high monthly income. They impulsively buy penny or small cap stocks for short term with money equivalent to their yearly income believing they would give a quick appreciation of Rs. 5 to 10 within in a few days/months. And then repent as these scrips/ companies go bust /get delisted.
Some of the Mistakes individuals make due to improper guidance:
- Over investment in the debt part, that too of low quality ultimately resulting in poor returns.
- Over investment in sectoral funds resulting in hampered returns.
- Not availing the Tax benefits offered by the Government.
- Improper maintenance of accounts leading to inefficient financial management which results in failure of the whole business.
.. And so many other..
There are individuals who put their money very conservatively into saving products like PPF, Bank FD, etc. during their whole working age of around 35 years. The return they get from them upon their retirement is so meagre, they can’t live comfortably and don’t get the taste of wealth they anticipated during their working period. Some of them become desperate for wealth and take highly risky bets in their 60+ age to hit a jackpot. Their wealth as well as health are taken for a ride.
This is because, people have mostly been presented products of saving masked and packaged as one of investment by many advisors and agents having little or half (dangerous) knowledge in the field of finance.
This is the story of most middle class and poor people.
Instead, one should consult an experienced and successful investment consultant about all kinds of investments -and expenses- and know what exact and reasonable yield he/she could receive at the end.
The Benefits of approaching a consultant:
i). Clarity of Plan: A consultant provides clarity to your thoughts, desires and helps you prepare a focused, implementable & achievable financial plan. A consultant also provides you safety because he knows the kind of tricks and frauds being used by operators in the market (society) to snatch lifetime of savings from you.
ii). Free from Stress: Financial plan being chalked and implemented by an expert itself is a strong base you create to keep you away from undue stress.
III). Character: When we approach someone to take his consultation, our ego is put aside naturally. This builds one’s character from being an egoist -might is right- sort of, to being a person of humility. Any millionaire or billionaire can’t be called Rich if he lacks emotional well-being or EQ (Emotional Quotient) and character. These are very important attributes to the riches along with the monetary one. Trusting and Respecting other human beings are important attributes of a Rich person.
iv). Strategic Planning: Finances planned individually are mostly based on the individual’s social policies which again are not very clear. Getting a plan from the consultant gives you a strategic edge which is mostly missed out from individual plannings. The strategic edge keeps you safe in the times of odds, unexpected events and contingencies.
Broadly, these are the benefits of consulting the expert that help you become rich monetarily as well as emotionally.
Some Don’ts:
• Don’t start ‘investing’ in a financial product impulsively. It actually may be a Savings product. Want to know which one is it? What is the Risk-Return Ratio of the product? Please Consult.
• Don’t prepare a financial plan for investment based on typical formula. Such formulae distributes the fund into different financial products or asset classes on the basis of the ‘thumb rules’ like: “Don’t put all your eggs in one basket”. Please don’t believe in socially popular ‘thumb rules’ meant for no serious outcomes but entertainment. There are many myths floating around in the society masked as thumb rules. Another dangerous one is: ‘Higher the Risk, Higher is the Return’. Let’s know about such myths which are responsible for financial disasters in the lives of the middle-class people. Let’s keep away from such myths. Please Consult.
• Don’t start gym suddenly. Please get reports of your pulse rate, heart beat at various speeds (e.g. on treadmill), heart condition related to efficiency, blockages, etc. and consult your trusted family physician or holistic health consultant before starting any exercise. And never ever gulp artificial protein drinks/powders. Their side-effects start after some years. In striving to become rich, if one loses health, although he may have millions or billions, he is not rich. Plan your life in such a way that you can enjoy life even in your old age. That is actual Riches. Only Health Wise is Wealth Wise, Not Otherwise…
Some Do’s:
• Keep meeting and consulting real field experts; Keep Reading books; Both help broaden as well as deepen our sphere of knowledge; Enjoy Life.
Live a Stress Free, Happy, Healthy & Wealthy Life
Consult.
Amish Saraiya (Director)
Anand Wealth Consultants
Family Financial Planners &
Multipliers of Your Wealth
Anand Wealth Consultants have been successfully providing result oriented financial and investment consultancy to individuals and families based on its intensive research since 1991.