One day my friend came to me and told that both he & his wife works in MNC’s. They both draw good monthly salary but they are not happy. He told me that they are not happy because they are worried. They are worried whether their monthly saving is good enough for the future or not. They both started spending less; they do not go for vacation etc. They are confused whether to buy a flat or a land, when to buy a car. Yes, looks like he is really confused and worried.
To help him, below questions were asked to him.
- What your current savings are and how much?
- Why do you need money and why are you saving?
- What major and important financial goals you have?
- When do you need the money for your financial goals?
- Do you know approximately how much money you need for all your financial goals?
- Do you have enough money to handle any financial emergency?
- If anything happens to you, how is your family going to survive?
- How long are you going to work?
Basically these questions are for each one of us. My friend is worried because he did not give a strong thought about his financial goals. He does not have any idea how much he needs for any of his financial goals. He is not sure what will happen if any emergency occurs. He does not know which investment product he has to choose based on the purpose and duration of his goals. He was not sure why he needs a Flat or a land, whether he wants to stay there in a flat or invest in a land. He did not think about how to protect his family if anything goes wrong with him. He was randomly saving, also not investing. Since saving and investing are totally different concepts.
There are many people you can see, who work hard, always save (without knowing why they are saving), they spend very less, they do not go to any new place, and they even forget where they kept their money. Whether their investment is taken care of inflation rate or not. One day they become old and die. They never enjoyed their wealth.
Advice to him was, to go to a Personal Finance Advisor and create a complete plan and personal finance portfolio. If we have a plan and know how to execute that plan, we can be focused and achieve our goals. In this way, he can concentrate more on his job; he can properly give time to his family and enjoy his life. He will know how much exactly he can plan for yearly breaks, go for movie, go for shopping with his wife, buy a car, buy a flat or a land and spend time for his hobby. He can even decide when to retire happily.
If we have our personal finance on track, we can be free from worries and live happily. Since healthy mind means healthy body. Remember, we have a limited time in our life and there are many beautiful reasons to enjoy our life.