How Much Money Do You REALLY Need?

Summary

In this insightful discussion, a personal finance expert reflects on her journey from a business journalist to a financial advisor, emphasizing the evolution of personal finance in India. She highlights the importance of financial independence, dispelling myths about its meaning and stressing the significance of structured investing for long-term goals. The conversation delves into the impact of SEBI reforms, the FIRE movement, and the importance of women taking an active role in financial decisions. The expert shares practical advice on saving, investing, and the psychological aspects of money management, advocating for financial literacy and proactive involvement in one's financial life.

Takeaways

• 📊 The speaker emphasizes the power of compounding interest, demonstrated through the example of the Public Provident Fund (PPF) and its long-term impact.
• 💼 Financial independence is not about stopping work; it's about having the freedom to choose when and how to work, and it's closely tied to personal satisfaction.
• 👤 The speaker's journey in personal finance began with a career in business journalism and a transition into personal finance in 1997, highlighting the evolution of the field.
• 📈 The speaker discusses the significant reforms in the Indian financial sector, particularly the changes in mutual funds led by SEBI, which have made investing more accessible and transparent.
• 🔢 The importance of starting to save and invest early is stressed, with the speaker suggesting that even small additional contributions to retirement funds can be beneficial.
• 🚀 The FIRE (Financial Independence, Retire Early) movement is mentioned, with the speaker providing methods to calculate retirement corpus and emphasizing the importance of starting early.
• 🏦 The speaker critiques the National Pension System (NPS) for its requirement to buy an annuity with a portion of retirement funds, suggesting it may not be the best option for all investors.
• 👩‍👩‍👧‍👦 The speaker shares personal insights on managing family finances, advocating for joint participation and transparency in financial decisions.
• 👩 The role of women in managing finances is discussed, with the speaker noting a slow but important shift towards greater female participation and control over financial decisions.
• 💡 The importance of financial education from a young age is highlighted, with the speaker sharing personal anecdotes about teaching children the value of money and the impact of choices.
• 📝 The speaker stresses the importance of documenting one's financial life for the benefit of family members, in case of unforeseen circumstances, and mentions an upcoming book to assist with this.

Q & A

What was the first product Monica Halen analyzed using her Excel sheet and how did it impact the perception of financial independence?

The first product Monica Halen analyzed was the Public Provident Fund (PPF). She calculated the long-term growth of a monthly investment in a compounding interest product, which demonstrated that even a modest investment in PPF could lead to significant wealth over time, thus impacting the perception of financial independence.

How did the reforms in the Indian financial sector influence personal finance?

The reforms in the Indian financial sector, particularly the work done by SEBI, led to a significant transformation in personal finance. For instance, the elimination of front-end commissions in mutual funds made investing more accessible and efficient, contributing to a more structured and goal-based approach to financial empowerment.

What is the FIRE movement and when is the right time to start working towards financial independence?

The FIRE (Financial Independence, Retire Early) movement is about achieving financial independence to retire early. The right time to start working towards financial independence is as early as possible, ideally when one starts working in the organized sector, as even small contributions to retirement funds like the Provident Fund can compound significantly over time.

What are the milestones for financial preparedness for retirement according to Monica Halen?

According to Monica Halen, the milestones for financial preparedness for retirement are having three times your annual income by age 40, six times by age 50, and eight times by age 60. These milestones help assess whether one is well-prepared for retirement.

What is Monica Halen's view on the role of traditional investment instruments like NPS, PPF, and EPF in a long-term investment portfolio?

Monica Halen believes that PPF and EPF form the core of a long-term investment portfolio. NPS is also a great product, especially for those without EPF, but she has concerns about the mandatory purchase of an annuity with 40% of the retirement corpus from insurance companies.

How does Monica Halen manage the finances in her family?

Monica Halen manages the finances in her family, and her husband has now become a participant, so they manage it together. Their entire asset pile is in mutual funds with a 70% equity and 30% debt allocation, which she does not recommend for everyone but suits their financial expertise.

What is Monica Halen's perspective on female participation in managing finances?

Monica Halen observes that female participation in managing finances is changing but at a slow pace. She encourages women to participate more actively in financial decisions, ensure they have assets in their name, and understand the financial implications of their choices.

How does Monica Halen suggest instilling financial awareness in children?

Monica Halen suggests instilling financial awareness in children by setting an example with responsible spending and investing habits. She also recommends teaching them about the impact of choices and involving them in decisions that have financial consequences.

What advice does Monica Halen give to women regarding financial independence and asset ownership?

Monica Halen advises women to be aware of the assets they have, ensure they have assets in their name, and understand the paperwork. She emphasizes the importance of financial independence and not relying solely on the male partner for financial decisions.

How does Monica Halen approach documenting her financial life and why is it important?

Monica Halen documents her financial life in a spiral diary, noting down important details like bank account information and financial relationships. This documentation is crucial as it serves as a roadmap for her family in case something happens to her, ensuring that they are not left in the dark about financial matters.

What is Monica Halen's view on the relationship between money and personal satisfaction?

Monica Halen believes that while money can smoothen many aspects of life, it is not the only source of satisfaction. She emphasizes that the most satisfying aspects of life come from finding meaning and purpose. Financial stability is important, but it should not overshadow the pursuit of meaningful activities and experiences.

Outlines

00:00

📊 Financial Independence Journey and Personal Finance Evolution

The speaker discusses their initial foray into personal finance, highlighting the transformative impact of analyzing the Public Provident Fund (PPF) using Excel. They reflect on the evolution of personal finance in India, from traditional investment avenues to the current focus on financial independence and early retirement (FIRE). The speaker emphasizes the importance of structured goal-based investing and the influence of SEBI reforms on mutual funds, which have made investing more accessible and efficient. They also touch upon the significance of starting financial planning early in one's career and debunk the myth that it's ever too late to start.

05:01

💼 Navigating Expenses and Savings in Midlife for Retirement Readiness

This paragraph delves into the challenges of saving for retirement during one's mid-30s to 50s, a period marked by high expenses and limited elbow room for large savings. The speaker suggests that even saving an additional 5% on top of the mandatory Provident Fund contributions can be beneficial. They also discuss the importance of maximizing savings during one's highest earning decade, typically the 50s, and the need to manage the risk of being replaced by younger, less costly employees. The speaker provides a method for calculating the retirement corpus required to maintain one's lifestyle, emphasizing the uncertainty of factors like inflation and life expectancy.

10:01

🏦 Traditional Investment Instruments and Their Role in Long-term Portfolios

The speaker evaluates traditional investment instruments like NPS, PPF, and EPF, considering their suitability for long-term financial planning. They express concerns about the NPS's requirement to buy an annuity with 40% of the retirement corpus, questioning the fairness of insurance companies in India. The speaker advocates for a core investment portfolio consisting of these instruments, especially for those who can invest beyond the minimum required amount, while also discussing the importance of having a diversified financial strategy.

15:02

👩‍💼 Women's Participation in Finance and the Importance of Financial Literacy

This section addresses the slow and insufficient progress in women's participation in financial decision-making. The speaker identifies cultural and societal factors that contribute to women's exclusion from money management, urging women to take an active role in understanding and controlling their finances. They stress the importance of financial literacy as a form of empowerment and caution against the risks women face, such as being left without assets in the event of a divorce due to India's lack of community property laws.

20:04

👶 Cultivating Financial Awareness from a Young Age and Documenting Financial Life

The speaker emphasizes the importance of instilling financial awareness in children, as it is a life skill that can shape their future financial behaviors. They share a personal story about teaching their daughter the value of choices and consequences through a simple book-buying scenario. The speaker also discusses the need to document one's financial life meticulously, sharing their practice of maintaining a record of all financial details, which serves as a guide for family members in the event of unforeseen circumstances.

🤔 Reflections on Personal Financial Decisions and Embracing Risk Management

In the final paragraph, the speaker reflects on their personal financial journey, including overcoming the fear of risk and learning to manage finances effectively. They share insights on the psychological aspects of money management, the importance of understanding one's motivations for spending, and the significance of earning and spending money in a manner that aligns with one's values. The speaker encourages viewers to share their financial stories, fostering a community of financial learning and growth.

Keywords

💡Financial Independence

Financial independence refers to a state where one has enough wealth to cover necessary expenses without having to work actively for basic necessities. In the video's context, it is discussed as a goal that involves saving and investing wisely over time. The speaker emphasizes that financial independence does not necessarily mean stopping work but rather having the freedom to choose how to spend one's time and money.

💡Public Provident Fund (PPF)

A Public Provident Fund is a long-term investment option offered by the government with a focus on retirement savings. The script mentions PPF as the first product the speaker analyzed using Excel sheets, highlighting the power of compound interest and its potential impact on financial independence.

💡Compound Interest

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. The video script illustrates the concept through the example of PPF, where the speaker calculated the growth potential over several years, demonstrating how it can significantly increase one's savings.

💡Personal Finance

Personal finance encompasses the various financial aspects of an individual's life, including budgeting, saving, investing, and planning for retirement. The video's theme revolves around personal finance, with the speaker sharing her journey and insights on how to manage money effectively.

💡Financial Literacy

Financial literacy is the knowledge and understanding of various financial concepts, such as investing, budgeting, and managing debt. The script emphasizes the importance of financial literacy, as the speaker discusses her role as a financial educator and the impact of her work on others' financial decisions.

💡SEBI (Securities and Exchange Board of India)

SEBI is the regulatory body for securities markets in India, ensuring the protection of investors and the proper functioning of the market. The speaker mentions SEBI's role in reforms that have made the Indian financial markets more efficient and in shaping mutual fund policies.

💡Mutual Funds

Mutual funds are investment vehicles that pool money from many investors to invest in a diversified portfolio of stocks, bonds, or other assets. The script discusses the transformation of the mutual fund industry in India, particularly the policy changes that made them more accessible and less expensive for investors.

💡Financial Planning

Financial planning involves the process of meeting one's life goals through the proper management of personal finances. The video script touches on the importance of financial planning, especially in achieving financial independence and making informed investment decisions.

💡Early Retirement

Early retirement refers to leaving the workforce before the traditional retirement age, often achieved through diligent saving and investing. The script mentions 'FIRE' (Financial Independence, Retire Early) as a popular goal, discussing the strategies and mindset needed to retire early.

💡Risk Management

Risk management in finance involves the identification, evaluation, and prioritization of risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events. The speaker in the script shares her personal experience with risk aversion and how it influenced her investment decisions.

💡Asset Allocation

Asset allocation is the process of dividing investment funds among different asset classes, such as stocks, bonds, and cash, to optimize potential returns based on an individual's investment goals and risk tolerance. The script provides an example of the speaker's personal asset allocation strategy, which is 70% equity and 30% debt.

Highlights

The first product analyzed in Excel was the Public Provident Fund, demonstrating the power of compound interest.

Financial independence does not equate to ceasing work; it's about having control over one's finances.

Monica Halan, a personal finance guru in India, discusses her journey and insights on personal finance.

Personal finance has evolved from traditional methods to a more structured, goal-based approach.

SEBI's reforms in 2009 transformed the mutual fund industry by eliminating front-end commissions.

The concept of FIRE (Financial Independence, Retire Early) is popular, emphasizing early retirement through smart financial planning.

Starting financial planning early in one's career is crucial, even if it's just an additional 5% savings on top of mandatory contributions.

The 50s are typically the highest earning decade, making it essential to save effectively during this period.

A method to estimate retirement corpus involves multiplying current annual spending by 26, adjusted for inflation.

Milestones for financial readiness include having multiples of annual income saved by certain ages (e.g., 3 times at age 40).

Traditional investment instruments like PPF, EPF, and NPS form the core of long-term investment portfolios.

NPS is beneficial but has drawbacks, such as mandatory annuity purchase with a portion of retirement funds.

The importance of having assets in one's name, especially for women, to ensure financial security in case of divorce.

Women's participation in financial decision-making is slowly increasing, but there's still a long way to go.

The importance of teaching children about money management and the impact of choices from an early age.

Documenting one's financial life is crucial for preparedness and to assist family members in case of unforeseen events.

Understanding the emotional reasons behind spending habits and the importance of mindful consumption.

Risk management in finance is as much about emotional control as it is about rational decision-making.

The joint participation in financial management within a family, moving away from a single decision-maker model.

Transcripts

the first product I put through my Excel

sheet was public Provident fund and I

remember the impact it had like you know

they were saying you can become a Cory

with ppf just putting this much being

financially independent does not mean

that you stop working we talking about

financial Independence and the major

question which someone talks about is

what's the number so at age 40 you

should have three times of your annual

income who manages the money in your

family and the answer is very simple I

do so I used to be a Financial coward

money is not an ego trip your

masculinity is is not directly

proportional to the amount of money that

you

manage if you know anything about

personal finance you know Monica Halen

the first personal finance journalist of

India best-selling author and adviser to

sebbi on investor protection are among

just the few things that make her the

personal finance Guru and today she's

all set to talk money with us so today

of course we are here with someone who

at least for our viewers needs no

introduction first thing You' would like

to know is in terms of your professional

career right uh how did your journey

start there and where are you at right

now you know how has that Journey been

first income is um business today I

joined as trainy researcher right out

out of Delhi School of Economics

something like, 1650 rupees you know

small salary so began my career as a

business journalist and then I was with

economic Times and that is the time I

made a transition into something called

personal finance this is 1997 personal

finance was not a thing back then 91 the

reforms had just happened the market had

just opened up and I remember the first

product so I knew my maths right I know

Excel sheets right so the first product

I put through my Excel sheet was public

Provident fund I just did the mats on

what 5,000 rupees a month for 15 20 30

years would lead up to in a compounding

interest product m and I remember the

impact it had in the entire building

like you know they were saying you can

become a Cory with ppf just putting this

much so nobody had done the math till

then right so that's how I realized the

power of using really my training as an

economist being familiar with numbers

putting it through the prism of retail

products to tell people what does it

mean for you in terms of the markets

which are there today right over the

number of years till now

uh what kind of evolution have you seen

in the way personal finance is viewed do

you think there's been a change and if

yes is it there to a level which you

think is ideal now at least in the

Indian markets you know it's a good

question because when I started there

used to be the FD Insurance gold real

estate investor right and there used to

be people who would gamble on the stock

market the IPO and the uh SATA type of

correct investing the Penny Stock

Investing and I began some TV shows at

that time one with TV very early on the

questions which would come were very

typical short-term questions I have

50,000 Rupees what what should I do with

it the biggest reform in India in the

financial sector has been done by

sebbi where today we have markets which

are in terms of the world I think the

most efficient I must talk about the

work done in the space of mutual funds

it was in 2009 that Mr CB B who was the

then chairman of sebi he took a very

hard call so there was Miss selling

happening in the whole mutual fund space

they were uh churning investors he took

away the front commission so not many

people know that that mutual funds were

allowed to charge 7% of your investment

as a commission at a stroke he took that

away he made India one of the first

markets in the world where mutual funds

SP no load zero load and because I was

closely associated with this whole

decision I had actually people calling

me up and saying congratulations you

have killed the industry wow that policy

really transformed the market back in

2009 of course India is a large country

you will have all kinds of people but I

think a significant portion of people

who have been investing have come to

realize that a structured goal-based

route to financial empowerment is really

the best way and I think uh right now in

personal finance the most popular word

which we hear is fire right financially

independent retire early what do you

think is the right time to start working

on achieving this goal of financial

Independence and one more thing I'd like

to ask anything which most of the people

would usually want to know is am I too

late to start like is there something

like too late to start so you pretty

much actually do start the day you start

working in the organized sector right

because you have something called The

Provident fund deductions so you already

doing something and typically what

happens is your late 20s mid till your

mid-30s it's a time of great expenses

the ability to do large savings for your

retirement is not there so even if you

can just do another 5% on top of the PF

that you're doing it's not bad at all

this for the initial years you

mentioning because you don't have Elbow

Room see there's no point also again for

all the young people who are listening

you know you're going to be in your 20s

and 30s just once of course okay you

will get older and these these are the

decades in which you have a you know you

enjoy your life you're young you can do

things and also what your generation

needs to remember is that your 50s

decade will be your highest earning

decade so your your ability to save in

your 50s decade is very high families

save 40 50 60% of their take home your

risk in your 50s decade is to get

replaced by somebody in their 30s

because you're a very high cost correct

resource for the company so you've got

to you've got to really understand that

in your 50s you should have a skill set

that makes the company keep you and I

think ma'am uh we are talking about

financial Independence and the major

question which someone talks about is

what's the number so all I can I want to

share is that the fire Target of course

has been reached right and the current

income which comes is available to be

spent oh lovely do you think there is an

ideal Copus per se see retirement is one

of the toughest problems to solve

because one you don't know what

inflation levels will be you don't know

what the economy will be like you don't

know how much how long you will work you

know so there are so many moving parts

that you can only get a ballpack figure

so one way is to look at your spending

at ag60 and do a multiplier so I'll tell

you the method that I use you take what

you are spending a year today and you

extrapolate it to 860 you use an

inflation calculator then some very good

calculators on the seev site right you

multiply that number by 26 so it'll come

into cres H that is the number which

will allow you to not eat up your

Capital leave a be for your

airs and eat maybe half your Capital if

you plan to eat up your entire Corpus

then you multiply by 18 if you want to

leave your entire corus to your airs

then multiply by 35 I've taken 26

because when you multiply by 35 it's a

very very large number right and there's

a second way that you can do it where

you are making Milestones according to

your age so at age 40 you should have

three times of your annual income at age

50 six times of your annual income okay

and AG 60 eight times of your annual

income so there's a difference in the

annual income and the annual spending

numbers right so those are the

Milestones that you need to look at to

see whether you are well prepared or not

for your retirement and these two

numbers when you do the math they are

within a ballpark of each other my

personal views is just this that being

financially independent does not mean

that you stop working so in in a lot of

the studies it shows that money comes at

number three in terms of the things

which give you satisfaction in life what

gives you the most satisfaction is

meaning in life so your desire for that

Financial Corpus is

valid you must do it but also remember

to have something to do true so it is

important Financial stability

Independence very important equally

important to think through the rest of

your 35 40 Years of your life as to what

you will do so ma'am we've uh discussed

about you know how your first 4A sort of

into personal finance was this

calculator on uh ppf right and how the

compounding sort of shocked everyone uh

today with these multiple investment

options out you know out there for

everyone to invest what are your

opinions on the traditional instruments

um which are there today NPS ppf EPF EPF

ppf according to me form the core of

your long-term investing portfolio for

people who are able to invest more than

that required one and a half lakh The

NPS is meant for people who don't have

EPF NPS is a great product it's

structured in a way where uh Miss

selling is not possible my only issue

with the NPS is that at the time of

retirement at 60 when you get your money

back at vesting stage you get 60% of the

Corpus and that's taxfree which is

fantastic but you have to compul sarily

buy an annuity with 40% of your

retirement money who sells the annuities

insurance companies insurance companies

in India have not covered themselves up

with glory in terms of being fair to

investors I don't see the sense of

handing over 40% of my money to an

insurance company to buy an annuity from

them especially at an age where I can

not earn fresh money so that remains my

problem with the NPS if the NPS was to

give me 100% of my money back at

retirement absolutely no questions asked

but this 40% which is handed over to an

insurance company I have a big problem

with so ma'am uh key question right who

manages the the money in your family I

think this is something which you all

would want to know and the answer is

very simple I do he has now become a

participant and now we manage it

together but for many many years I was

the person who managed all the finances

all the taxes all the decisions the

actual doing the Redeeming the investing

we do exactly what I write in my books

our entire assets are in mutual funds I

don't we both don't own a sing single

stock H and we are both Believers in not

having too many properties it's a messy

clunky asset so one house that we live

in that's it so this house actually uh

we bought about 3 years back right the

first house we bought was 2009 when we

sold that and bought this one rest the

entire asset pile is mutual funds the

allocation is 70% Equity 30% debt that's

what the allocation looks like I am not

recommending this to people my age but I

think we are both Finance people we know

what we are doing to other people in

their 50s I would recommend a lower

Equity allocation but that's where what

we are at I think one factor which you

know even which I've seen across

conversation different colleagues is uh

you know female participation in markets

our in general controll of finances or

managing of finances uh what is your

view in terms of how there is you know

participation of women in finance today

and has that sort of changed over the

past you know 20 30 years which you've

been around in the market it's changing

but very slowly slower than what I would

like and there are a lot of

non-financial reasons for that typically

girls are not brought up to look after

money and that's what they see in their

homes the mother looks after the

household expenses Investments are made

by the father it's not very pleasant to

say

but you want to keep the girl child out

of knowing how many assets there are so

that she doesn't ask for her share

because the assets they go down the mail

line right so they are sort of kept out

of those asset decisions and that

translates into the way that women look

at money I have to tell you so if I'm

going somewhere if it's a social evening

or something and they ask me what you do

and I say Financial education the

women's response nine out of 10 times is

oh I know nothing about it and we harm

ourselves we taking a knife and sticking

it in ourselves because money is power

and you're giving that power away have

you seen a change at least to some

extent today than maybe 10 years ago

it's very slow there is a little bit of

change but it is very slow so all women

work women work inside the house and

some women also work outside the house

so the woman who's also earning is so

busy managing both that she simply

doesn't have the time to look after

there's one more thing to do and that's

the one job not the laundry not the kids

that's the one job the man is happy to

take of managing money of taking over

decisions I'm not saying that she gets

cheated out of it but there are stories

of Investments of the woman's money only

being done in the man's name so

especially to women who are listening to

this you have to put on your money

oxygen mask right share do job sharing

in some other part of your life but at

least start participating in where the

money is going you can ask simple

questions what assets do we have in

whose name are there where is the

paperwork what do I have in my name I

think you should not be shy to ask these

questions because countless divorced

women who I've spoken to have said that

we had no idea that we had nothing on

our name wow because India doesn't have

what is called community of marital

property right which means that assets

built during the period of a marriage if

it were to end are split 50/50 that's

what it means India doesn't have it the

asset belongs to the person who in whose

name that asset is so if the woman's

salary has been managing the house and

the man's salary savings have built an

asset and there is a divorce he walks

away with the assets and you have your

dry cleaning bills that's what you have

so be careful ensure that you have

Assets in your name see the paperwork

finally it's your life so uh ma'am this

habit of you know saving or learning

about personal finance is something

which I I feel at least maybe should be

inculcated slightly earlier I mean at

least for me personally as well I was

not so much aware but when I started

earning my brother immediately made me

invest do you think uh inculcating these

sort of habits and awareness um you know

during a stage of being a kid will help

in the future Journey absolutely I mean

the more money aware they are in terms

of growing up while they're growing up

it only is a life skill that you teach

them and kids will do as you do they

won't do as you say so they will look at

your spending habits they will observe

your investing habits and learn from

that so if you want your children to not

spend foolishly then you have to stop

spending foolishly and one thing which

you must do is tell them the impact of

choices that choices have consequences

and I'll share a very small personal

story with you our daughter was very

young I think she would have been seven

or eight 8 years old mhm and uh we were

out book

shopping so there was this old Books

store where they were selling used books

and there was a new book store so I

think it was some 200 rupees which I

said that you can buy books from if you

buy old books you'll buy three if you

buy a new book you'll get one I don't

remember it she remembers it very

clearly that I was trying to make no

moral judgment I think I spent time

explaining that uh you know these this

is your choice there is Merit to having

a shiny new book there is Merit to

having three books right and she

remembers sort of listening to me

because she had two because she had made

up her mind that three in any case is

better than one okay so those are the

sort of choices you can help them make

at a very early age right touching on

something within your family right um

were people in your family always

receptive to you know Financial advice

coming from you in like the larger group

and has that changed over the years very

interesting question there is a saying

in Hindi Dia and your family is almost

the last to on board other than of

course my husband the extended family

took some time I think the biggest

transition was in my

father who also used to be an economics

professor but you know he was part of

that generation who lost money in unit

64 and said sub scam but it is as

recently I think as just 10 years back

15 years back that he fully transitioned

to mutual funds so it's taken some time

what I want to share with you and all

the other people watching this is that

it's very important to

document your financial life right so I

began this journey many years ago I have

a spiral diary where I started putting

down you know basic things like Adar pan

Bank Account

Details this diary and I sorry it's a

little bit of tough love I call it if I

die before you file okay if I die before

you there is a whole list of things

right all the financial relationships

the names of the planner the name of uh

the lawyers the platforms through which

you invest right all of those details

are there in that document and I must

tell you that uh a book will be

releasing soon lovely the title will

come out soon where it'll help people

record these things it'll be a record

book which you can keep for use today

day and if something happens to you

it'll be the road map for your family so

this is a document that I have

personally used and I'm bringing it for

use for everyone else as well and ma'am

in terms of your expenses which you've

done in your life right I need to ask

you is there any uh expense which you

have regretted you know any uh thing

which you said maybe I should not have

bought this so earlier there wasn't any

money for this and by the time the money

came the desires were not that many I

think the way that we spend reflects on

deep feelings within ourselves so if you

feel insecure about something that

crutch off that branded product might

help you feel better so I think it's

important for us to decipher why we want

to buy true and in fact um I sort of

read this interesting anecdote where you

know someone was questioning who is

really a wealthy person and uh the

person answered you know it's that guy

who walks in with absolutely normal

clothes like a you know sweatshirt walks

into a three Michelin star and leaves a

50% tip for the you know person who

serve them just because they can the way

that I see money is how you earn it and

what you do with it true how you earn it

is a reflection on who you are how you

spend it as a reflection on who you are

so money is good earn it in a manner

which gives you and others

dignity and spend it in a manner which

helps you absolutely so I used to be a

financial coward

I could not take risk the family

background was such uh we were middle

class we went into lower middle class

and then climbed our way up and the idea

that by taking what is known as risk we

could lose it all I get frozen so risk

is about the mind but risk is equally

about your emotions at the vital level

and I think my vital dominated my mind

and uh for a long time I was unable to

move and luckily she was there I said

you know what you take all the money

just put it don't tell me I don't I

don't want to know I don't need to know

now of course it's a joint participative

effort but for a long time I just got

the money invested and did not tell him

where it was going money is not an ego

trip your masculinity is is not directly

proportional to the amount of money that

you manage uh so whoever is the smarter

person give the money money is a good is

a good thing to have and

it it smoothens a lot of problems in

life it's not the only thing but it

smoothens a lot of things in life so uh

keep your ego aside and let the better

person manage the money and if you can't

hire a financial planner thank you for

watching and supporting our Channel if

you like the stories we tell here's your

chance to be a part of it if you or

anybody you know has an interesting

Financial journey to share then please

fill the form in the pin comment below

and we'll get in touch with you