DON'T RETIRE RICH

Saturday, 14 November 2020

INVESTMENT LESSONS FROM DIWALI

DIWALI is the most loved festival in India...



Young, Old and almost everyone looks forward to DIWALI

The young look forward to Crackers
The Old look forward to Spending Quality Time with Family
The Middle look forward to Sweets
Shoppers look forward to the OH! SO TEMPTING OFFERS from Companies and Online Websites
And everyone, of course,  looks forward to THE GIFTS!

Deepavali is a great time to have a serious look at your finances.
And, for me, personally, Deepavali has had a strong connection with INVESTMENTS coming from Equity Background (Muhurat trading, et al)



ADVANCE PLANNING :
Since Deepavali (Diwali) is a BIG BIG festival, lots of advance planning goes into celebrating the festival.....

Things like...what to buy, what to sell, what to clean...whom to invite....where to go....what food/sweets to prepare, what new to bring home...what old to dispose of....

Likewise...our Life Goals too need to be planned in advance.
Almost everyone does plan for BIG ones like Child Marriage, Education, etc but tend to ignore the smaller ones like the Annual Fees, Replacing the Car, Upgrading to a Bigger Tv, etc....

These small things play a huge role in denting or improving your Financial position and hence DEEPAVALI (DIWALI) would be a good time to start Planning in Advance for these goals and make your life better.

For ex : Planning a Post Diwali vacation in advance helps in identifying the place to visit and stay. And booking the resort and flight tickets almost always saves lot of money by way of discounts, offers, etc

In Fact, PLANNED SPENDING leads to PLANNED SAVINGS and PLANNED INVESTMENTS helping  in improving our Financial Position dramatically. 








CLEANING :
All Festivals, more so DEEPAVALI (DIWALI), start with Cleaning. All that “lets see later” things which we kept on Roof Tops and Corner of Room/Cupboard, come up for a Final Decision are either disposed off or kept in its proper place.

Likewise, every investment you do or have done should have a specific purpose and goal.
Maybe some are for Yearly School Fees,
Some are for buying Jewelry,
Some for Emergency,
Some for Buying Own House







There would be many investments which you would have bought due to pressure from your friendly neighbour LIC Agent or from your Bank Manager. They could have become a decorative piece and not adding any value. 
You need to sit with your Financial Advisor and recheck whether the investment which you have continues to make sense and what role that investment has in fulfilling your Financial Goals.

And of course, most importantly CLEAN YOURSELF OF BAD MONEY HABITS !


SAFETY & Protection: 



DEEPAVALI (DIWALI) is a festival of lights but is also of Crackers, especially with those having Kids at home.

Kids love playing with Crackers and being young, they tend to be bit careless about protection and we, as Elders, always, ensure that they are adequately protected with sufficient amount of Water nearby and Fire Extinguishers also . Besides, we keep an Eagle eye on their movements.





Likewise, our Family too needs protection. Of course, almost every family will have a Life Insurance Policy but is it sufficient?
Many people buy Insurance only to save Tax and not to Cover their Life adequately.

DEEPAVALI (DIWALI) is a good time to sit with your Insurance Advisor and check whether the Insurance you have is enough to take care of your family in case of your absence.
At the same time, it is better to play more safe by having adequate Health Insurance.

By the way CORONA virus has made us understand the importance of Keeping ourselves safe by way of Mask, Sanitiser, etc. Isnt it?

In the same breath, we need to have EMERGENCY FUNDS to protect ourselves from situations like LOCK DOWN,  INCOME LOSS, etc

 




DIVERSIFICATION :

We have variety of foods in Deepawali (in fact, all festivals in India have huge spread). Even when it comes to decoration, we love Variety.
We have variety of Rotis, gravy like Paneer, Dal, and then Rice items alongside sweets, spicy foods, dry fruits, chocolates, tangy pickles, healthy  salads, cruncy foods and we close with deserts and of course, WATER..

Even Crackers are huge in variety.

Likewise, we need to have Investments spread across Basket of assets and geographies.

So, while Equities is inevitable, we cannot ignore other assets like Gold, Debt, REITs, Bonds,  and International exposure too.

Mapped with Investment Horizon and Risk Profile, this diversification can easily help you achieve your Goals with least volatility.

 

 

 

GOAL BASED :
Gift Giving is one of the MOST enthusiastic work that everyone does (Gift Taking too but obviously the satisfaction you get when you give is irreplacable).

And when we choose gifts, we choose according to their gender, taste, preferences and various parameters.
Exactly same way, when we are saving/investing, we need to understand when and why we are doing this saving/investing. It could be as simple as Next year’s vacation to life goal of Buying a Home.

We need to plan as to when we need the money and for what purposes and thus your investment will go according to that goal.

 

 

 

 

EVERYTHING NEW


DEEPAVALI (DIWALI) marks NEW in many ways.
We buy NEW clothes, new appliances for our home, we even go to NEW places to enjoy.
Even NEW ways of Donation. Earlier we used to donate clothes but now its a trend to actually participate in some Social Seva including serving in Ashrams.
I truly appreciate this NEW thing.



Likewise, in Investment too, we need to be broadminded and be ready to accept NEW investment concepts.
Debt Mutual Funds is the NEW thing now...FDs are passe.
Gold Funds are the NEW thing now....Gold Chits are passe
SIPs are the NEW thing now.....RDs are passe


BONDING:

With Deepavali comes the Get-Together of extended family helping us to BOND with each other.

The long-distance mama, the nearby chacha whom we rarely meet due to busy life all meet for Deepavali definitely increasing the BONDING

And of course, who can forget the BHAI DOOJ wherein the sister ties a thread to brother and offers sweets and the brother, in turn, gives her gifts showered with love.

All this increases Bonding and helping us face life with renewed energy and vigour

EXACTLY,

Our investments should gel with each 0ther and compliment each other.

A Perfect Asset Allocation will ensure that even a volatile market does very little or no damage to the OVERALL PORTFOLIO

So make sure that your investments, savings BOND and GEL with each other ensuring that you have a peaceful financial journey. 




 

Charity


Our hearts are filled with happiness and we are more than willing to give away

And it’s a good thing to do. The satisfaction that you get when you see the smile on the less privileged when you share is something which no gadget can fulfill.

Deepavali is a festival when the atmosphere is filled with abundance and giving Charity to the Under Privileged is a Must and Most important

And of course, to do regular charity (and not just on Deepavali) is to have an abundance of Wealth with proper financial planning and perfect Asset Allocation backed by good investments be it in mutual funds or direct equity.


 

BANISH DARKNESS:

DEEPAVALI festival is well known for lightning of Lamps and Diyas. This banishes the Darkenss.
Likewise....Banish the Financial Ignorance from your life...

Learn from the investment mistakes of others…. Avoid them
Learn from the Investment Success of others….implement them

Keep reading the Articles, Tweets and posts from SRIKANTH MATRUBAI and empower yourself.
Join the BEST Telegram Channel on Mutual fund run by Srikanth Matrubai called MF WORLD.
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Get knowledge and get yourself financially empowered.
This is possible when you avoid NOISE. Like you avoid NOISE POLLUTION in Diwali, likewise avoid NOISE POLLUTION from half baked experts

 

Of course, do not forget to read the Amazon Best Selling book DON’T RETIRE RICH

https://amzn.to/3cHUM6M

 

 



Incorporate these things this DEEPAVALI (DIWALI) and have a BRIGHT future ahead.

Let there be no EMI in your life.
Your Investment should have grown so much that you should be in a position to buy everything with YOUR OWN MONEY.

Its possible. Its just a matter of smart planning.

May Devi Lakshmi bestow you with Prosperity and Wealth




Have a great DEEPAVALI (DIWALI)

And May everyday in your life be like Deepavali Day
HAR DIN DIWALI !!




Regards,
Srikanth Matrubai,

YOU CAN ALSO WATCH THE VIDEO OF THIS ARTICLE https://youtu.be/U8B7YtF-rBM

 

 

And for those who deal in DIRECT EQUITY
here's something I have written for you


May you have as many shares of DABUR as many times you brush your teeth


May you have as many shares of MARUTI SUZUKI as many trips you have


May you have as many shares of JUBILANT FOOD as many times you have food


May you have as many shares of INDIAN OIL as many litres of petrol/diesel you fill


May you have as many shares of TATA CONSUMER as many times you have coffee/tea 


May you have as many shares of DMART as many times you do Shopping


May you have as many shares of APOLLO HOSPITAL as many times you do Exercise


May you have as many shares of IRCTC as many times you travel in Train


May you have as many shares of NYKAA as many times you wash your face


May you have as many shares  of AIRTEL for as many phones you have in a day


May you have as many shares of TCS as many articles you read to enhance your knowledge


May you have as many shares of HDFC AMC as many monthly SIPs you have. 


Happy Deepavali, 

Srikanth Matrubai 





 

 



You are strongly encouraged to consult your financial planner before taking any decision regarding this investment. The views expressed here is the authors personal views and should not be intrepresented as a recommendation to invest/avoid.
Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH
Do read the book and give your valuable feedback and request you to post positive comments on the Amazon. https://amzn.to/3cHUM6M/ You can purchase the book on amazon and flipkart Please subscribe to my TELEGRAM channel https://t.me/MutualFundWORLD/

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