There is a debate going around the basic structure of our constitution. Except for a few different tunes, the majority of experts believe that the basic structure like supremacy of the constitution, unit and sovereignty of India, democratic and republican form of Government etc should always remain intact. There cannot be any tinkering with the basic structure.
Similarly, your financial plan also has a core or basic structure, which should remain intact come what may. Most areas of the financial plan are dynamic and as per the situation, they will continue to evolve or change. But I believe the following core characters should always remain intact-
1) Always follow the fundamentals of investments- Any compromise on these fundamentals due to greed or fear may jeopardise your financial goals.
2) Always follow diversification- Putting all your eggs in one or very few baskets may result in rude surprises.
3) Family first- Ignoring the interest of the family by not taking enough insurance, mediclaim, and not addressing their financial goals would result in huge financial distress not to forget the rift in the family as well.
4) Don’t repent the past- Never beat yourself up about why you have not started the investments early. Any moment is a good moment to start good things.
5) Don’t equate net worth with self-worth- Your self-worth is the result of your feeling of abundance within. It should never be equated with how much money or assets you own.
6) Never stop saving- Irrespective of your income, always make it a point to save some amount. It could be 30%, it could be 10% or it could be just 1% of your income. Amount is less important; the habit of saving is. And the best way to save is not to wait till you finish all your expenses. Save first from income and then manage your expenses with the rest of the amount.
These are the few things which should never be compromised in your financial journey. You protect these basic tenets and they will always protect your financial prosperity and peace.
Manoj Pandey
CFP
