An announcement is made by the Air-Hostess
“ Should there be a drop in cabin pressure, oxygen masks will drop down from
above your seat. If you are traveling with children, make sure that your own
mask is on first before helping your children”.
How selfish of her to say that you ignore your dear child’s
safety and think of ourselves?
Surely, every parent would be anxious to secure their
child’s safety first.
NO. Not at all. The Air Hostess does not mean ignoring your child’s safety. What she intends to mean is that FIRST YOU PROTECT YOURSELF SO THAT YOU ARE IN A GOOD SHAPE TO PROTECT YOUR CHILD.
What they mean is that only when you are in your best physical
shape, you can help your dear child.
But without you putting on the mask yourself, you may
struggle for air and could become unconscious and you would be physically
incapable of putting the mask on your child. Obviously, you cannot pour from an
empty cup! In fact, you could well end up being in need of help yourself!
Putting the mask on yourself first doesn't mean you don't care about others. It means you're smart enough to know you can't help others if you don't help yourself first.
To be a good parent, you need to take care of yourself so
that you can have the physical and emotional energy to take care of your
family.”
Michelle Obama
CONNECTION WITH INVESTMENT :
Similarly, when it comes to Financial Independence, you need
to help yourself first by investing for your own retirement. First, you can
help others only if your future is secured.
Of course, You are indeed working/earning for your family and yes, your family means the World to you.
And yes, education for your dear is absolutely
critical.
But so should be your Retirement!
In a recent survey by MONEY and Barnes & Noble College,
41% of US parents said they sacrificed their retirement savings so they could
pay for their kids’ college. That’s not a good financial strategy.
A similar survey in India may well reveal similar numbers.
But is also indeed an undeniable fact that you can get a
loan for your Child’s education but not for your retirement.
Anytime you
invest/deal in money, ensure that it does not hinder your own Financial Goals
and actually compliments it. Now even if a loan for retirement was indeed available (It may be in the future, you never know)
but wouldn’t it be wise for your young earning child to pay THEIR loan rather
than a retired non-earning YOU paying from your retirement Kitty!
Moreover, your child EARNING due to that Management Degree is
not guaranteed but your RETIRING IS GUARANTEED!
Save yourself from both the emotional and financial stress post
retirement by focusing on YOUR RETIREMENT KITTY now.
Prioritywise, YOUR RETIREMENT should come right at the top,
yes, even above your child’s education!
Indians have tended to rely heavily on their children post Retirement. The unwritten agreement seems to be “I promise to leave my wealth to you in return for care and financial support in my old age”. Joint families used to instill a sense of financial security but as the young migrate and nuclear families are becoming the order of the day….You having to spend your Retirement Days all with yourself with no support from children is a sad reality and has to faced with no escape.
When it comes to Your Retirement, it is indeed a good thing
to be SELFISH !!
BTW, this applies not just to your Finances, but to even
your Health (Mental and Physical).
Don’t slog without a break struggling with depression. Focus
on your growth, your happiness first and then help others become healthy,
physically, mentally and financially.
Your dear child can always get help from scholarships, study
jobs, grants, and if nothing works, EDUCATION LOANS.
Remember, our Life span is growing longer and longer. Hence
the Retirement Years (non-earning years) are also getting longer and hence the
Retirement Kitty needs to be bigger and you cannot afford to be dependent on
your dear children who will have their own financial challenges burdening them.
Your dear child’s college life could be about 5 years and
your Retirement could be in excess of 25 years !!
Make sure that your Retirement Kitty is good enough to sustain
your expenses (and unforeseen health bills) for all those years. Remember, post
retirement, your retirement fund cannot afford to play in Equity Small caps and
similar high-risk high return assets and could thus be generating sub-par
returns.
As Dave Ramsey says, “Only the strong can help the
weak.”
When your financial position is indeed stable and a retirement investment plan is in perfect place, go ahead and even plan for a
super luxury education for your child and a Marriage in a Swiss Castle!
So, the priority above your dear child’s Education fund should
always be YOUR RETIREMENT FUND.
