Creating and Tracking a budget is one of the best ways to make sure that you are spending your money wisely. Not maintaining a budget or regularly tracking your spending is like driving a car without looking at the speedometer: you don’t know when you’re going too fast or when you’re driving over the edge. That doesn’t mean that you need to track every rupee; instead, make it a habit to spend a few minutes a week reviewing your recent purchases and identifying ways to save money in the future. Write down your purchases in Excel sheet, and look for patterns. You may discover that you’re buying from MacD every day or splurging on a coffee every morning before work. That discovery will help you to identify where you are over spending and where you are underspending based on your priorities and will help you to correct this anomaly in your spending pattern that will help you in your financial well being.
2. I’m so young, there is plenty of time to save for retirement later.
Most people who don’t currently have a retirement plan or have one but feel they don’t need to worry about it now, because they have plenty of time to save for retirement later. Time is something you can never get back so why not start saving now? Put aside some money every month that you can invest in something safe, that you can afford to lose.
Retiring in your fifties or sixties may seem like old age to today’s workers, but even if you wait until you’re 65, you’ll still have decades to go before you hit a century. That’s a lot of time to make mistakes that could cost you dearly in the long run. Plan ahead, and take the time to learn about the different types of retirement investments and which work best for your situation.
3. When I get married someday I won’t have to worry about money.
Although you are probably young, it’s never too early to start thinking about planning for your future and making sure you are on the right financial track to achieve your goals. But, if you are one of those people who think, “When I get married someday I won’t have to worry about money,” or “When I get my first job I won’t have to worry about money,” you may be sabotaging your finances.
4. I’m counting on Government/Pension Plan
While many retirees have managed to make their nest egg last well into retirement, many others are still working into their golden years to earn extra money, or worrying about how to make ends meet every month. Unfortunately, many of these people are unaware of how much of their retirement may be in jeopardy if they rely on government pension plans.
The government pension plan (PF/EPF/NPS etc.) is only supposed to be a supplement to your retirement savings. They were never meant to be the only source of your retirement income. Yet, sadly, many people are happy to quit working as soon as they start collecting their government pension plan (PF/EPF/NPS etc.), and stop contributing to their retirement savings. This dangerous habit will sabotage your financial future.
5. I deserve to have fun with my money
If you are like many people, you believe that you worked hard work, a good education, and got a good job so you deserve to have fun with their money.
Having fun with your money can mean different things to different people, so imagine a surprise when you learned that the meaning of the phrase was different from what you had imagined. You viewed enjoying your financial life as going on a nice vacation or shopping for a new car, but apparently, you needed to re-think your definition.
But if you want to live a financially worry-free life, you have to learn to embrace responsibility and do all the things that are necessary to make your financial dreams come true.
6. A big inheritance is coming my way someday.
Having a sizeable inheritance coming your way can be a blessing, and it is a nice problem to have. But it can also be a curse, since you may not feel any need to save for retirement or otherwise plan for the future. Thinking you’ll be able to retire wealthy because your parents left you a lot of money to inherit can make you feel complacent and even lazy. You may tell yourself that you don’t have to save because the cheque will be coming in soon. This attitude can cause people to put off saving for retirement, spend their money on luxury cars, second homes, and vacations, and run up their credit cards.
Inheritances can be a huge boon to your finances, but only if you are financially savvy enough to use the money wisely. Don’t let thinking you’ll be rich one day undermine your financial future.
7. I need to get my kids through college first and then I can focus on my retirement.
Saving for the future is important, but we all know that there are many things competing for our hard-earned cash. Between college education and marriage for the kids and the house for the family, the pressure to save can feel overwhelming. The unfortunate truth is, many of us put retirement on the back burner, convinced that we can’t afford to save.
But the best way is to fund your retirement fund first and then for children. Don’t take me wrong I am not saying that do not educate your children well but you can use education loan to finance your children higher education and if at all you pass the responsibility of repayment of the loan on your child, he/she may be able to repay within 5-6 years so it’s better to let them shoulder 5-6 year financial burden of repayment than to shoulder 20-30 years of your retirement financial burden.
8. I’ll start Investing when the market improves.
With the recent downturn in the market, investors have been trying to figure out how to save more money. One of the most common ideas is to invest more money when the market is up and less money when it is down. While this may seem like a good idea in the short-term, this philosophy can actually hurt you in the long term.
It is hard to start investing when the market is doing poorly, but it is even more important to start investing when the market is doing poorly. Although it may seem like a good time to buy, the real value of an investment is not realized until you sell it. By not investing during a down market, you miss the opportunity to buy stocks /Mutualfunds on sale.
9. I plan to keep working even during retirement.
I’m sure you’ve heard the saying: “Work to live, don’t live to work.” It’s a good phrase, but it’s not realistic for most people. Everyone needs an income, whether that’s from a job, a side hustle, or Pension. As you approach retirement, you’re probably a bit nervous about your future since that steady Salary is all you’re used to. You’ll need a plan for making sure your bills get paid and food on the table.
Besides, there could be a situation where due to some health issue you may not be able to work during your retirement and if you have not planned for your retirement income, you may struggle financially at that age. Should you prefer to do same by choice?
10: Trying too hard to keep up with neighbors and friends
If you live in an affluent neighbourhood, chances are you are surrounded by people with fancy cars, big houses, and the latest branded clothes. Although it may seem that these people have it all, they may be in dire financial shape. How can this be? It’s because they are trying too hard to keep up with their neighbours by spending money they don’t have, and they are paying the price for it.
If you’re not careful, all the fun and excitement your friends are having with their luxury cars, big houses, and fancy vacations can make it hard to keep track of your spending habits. But social comparisons can be dangerous for your financial future. One study found that people who made social comparisons to those in higher-income brackets saw their financial well-being decline over time, while those who compared themselves to those with lower incomes became more optimistic.
If you need help to save yourself from above self sabotising habit’s, please feel free to book 1-hour free consultancy appointment with me by clicking here.
I have worked with more than 100+ Investors’ and after carefully observing them, here’s what I have found out as the “9 TOP Skills/Traits of a Smart investor”
1.They are long term investors:
Patience with delayed gratification is one of the virtues of smart investors.
A study gave children two marshmallows. Those who resisted went on to become successful than others.
Watch: The Marshmallow Experiment – Instant Gratification
2. Distinguish Myth from Truth
Pro investors don’t believe everything they hear in the News. They understand between –
a) When the hunter comes, spreads the net, and the retail investor falls into the trap and
b) When they need to make a quick move to catch the swing.
True professionals understand and can distinguish between Myth and Truth. They base their decisions on advice from mentors who they know have walked their talk. They base their decisions on economic fundamentals.
When there is hardly any economic activity and the markets move upside, the probability of something fishy is more.
3. They skillup fast and become financially literate
Smart Investors are financially literate and spend time understanding jargon and investing rules. Financial literacy is educating yourself on the relationship between income (what comes in), expenses (what goes out), assets (what you own), and liabilities (what you owe). Pro investors work on their business, not in their business. Pro investors also own assets that work for them, as opposed to working for money.
4. Leverage Time
Smart investors work smart, not hard. They leverage time by investing early and for the long-term. They leverage other people by hiring them for their time and expertise if they are not experts and let fund managers/Advisors take the calls.
5. They Practice discipline
They stay away from shiny object syndrome. To succeed in building long-term wealth, smart investors practice daily self-discipline.
They consistently periodically review their portfolio to match their goals with their investments.
They never lose their way. Focus is the key. They prepare their day the night before.
6. They master their Emotions
Smart investors have high E.Q. than their I.Q. Their ability to be calm despite being under stress, their ability to think creatively under pressure, and they recover quickly if they had made a mistake.
They don’t keep hanging with investments that are in RED and take rational decisions to get rid of them and make smarter decisions.
7. Fast Decision Taker
With time they build up their algorithms in their head and trust their intuition, then decide promptly, and if need be, course-correct alongside.
They don’t have the analysis paralysis syndrome. If there is a misfire, they quickly take aim again and shoot.
8. Persistence is the key for smart investors
Smart investors plan their investments/trades before-hand and not on the ground. They create their investment style and keep improving their style and skills. Huge swings don’t worry them, they love the volatility as it gives more opportunities.
9 They Entrust Professionals
Smart investors know the game. They would not invest in businesses they don’t know, or would outsource their investments to another fund manager who knows better.
Well, my question to you (Investor) is:
“Are you conducting your personal finance like a professional investor in these tough times?”
“How many of these skills do you currently have?”
“Which skills will you master?”
“Most of the investors can skill up and learn more now. Are you going to be the one.”
Well, even if you don’t engage in this post, the answer should reflect in your portfolio one to two years from now.
Make that decision; take one small step in that direction. Remember, we all crawl before we walk. I would love to hear from you, what will you do to upskill from here…., maybe one or two years from now…
By-the-way if you want to Upskill yourself in personal Finance and Wealth Creation, check out my DIY course by clicking here :
It always amazes me the way Indians have a positive bias towards real estate investing. During one of my client’s yearly review google meeting yesterday, I came across the same phenomenon again.
The client had invested around 30% of his portfolio in the peace of land around 5 years back and when I calculated CAGR it came around 10% without the effect of Long term Capital Gains taxes which he would pay once he books the profit.
On asking whether the same investment would further expected to appreciate the way it appreciated in the last 5 years, he said no. So I suggested him to book the profit.
He was hesitant to book the profit. So as his wealth coach, I asked him whether the recent poor performance of his mutual fund portfolio is the reason for his hesitance?
He admitted and said yes.
He had done few mutual fund investments here and there since 2008 before hiring me as his wealth advisor and the same gave decent returns.
When I highlighted decent returns from his infrequent investments into mutual funds, he agreed that returns are good in his equity mutual funds also and agreed to review the booking of profit in his real estate investments.
This led to another challenge, he asked me what to do with Black money that will come from selling real estate?
I have suggested some traditional ways to convert black money into white legally.
The story of real estate investing Positive bias is not limited to one of my clients but for all investors.
The reason for such positive bias towards investing with real estate is that majority of real estate investments are into residential properties and the same are not valued frequently like other investments and are typically sold after 3-4-5 decades as and when required to be sold for various family reasons.
When a residential property is sold after decades of investments, price appreciation in absolute rupee terms looks high and the majority of investor does not understand the power of compounding and can not calculate CAGR they earned from the residential property they sold.
The absolute rupee gains thus create a positive bias for real estate investing as compared to equity/Equity Mutual Funds.
The real question for investors is: How many of you remain invested for 2-3-4 decades in your equity investments?
So as Investors do not remain invested into equity/equity Mutual Funds, they do not have real estate equivalent positive experience of equity investing and thus they are not positively biased for equity investments as compared to real estate investments.
I am not against real estate as an investment class, all I am discussing is Behavioural Biases of Investor so that the same learning may be used by readers to save from such emotional biases.
The point I am trying to make here if you compare equity as an asset class with Real Estate, the historic returns of equity are better than real estate but we could hardly find few investors that have enjoyed the same returns due to their short term behavior.
I would also like to share one of my client’s situation described as ‘Asset Rich, Cash Poor‘.
He is Central Govt Employee and has decent earnings but as 90% of his assets are into Real estate and rest 10% into statutory retirement funds, he is required to borrow money as a personal loan to finance his short term funds requirements.
My Client was eroding wealth as opposed to creating as he was borrowing money at higher interest rates than his portfolio was earning.
Learnings: If an Investor can remain invested for 2-3-4 decades into equity, they can earn far better tax-adjusted returns from equity as compared to Real Estate.
So keep investing into equity and reap the benefit of long term wealth generation while you can diversify your 30-40% of your portfolio into real estate if the remaining portfolio provided for your liquidity requirements.
Caution: While Investing in Real Estate, always consider your Liquidity requirement as real estate is not liquid means you can not sell a portion of your real estate and you may not be able to find buyers as and when you need money.
PS: If you are interested in managing your money/Personal Finance well, I have created an online course for Do-It-Yourself Financial Planning and Wealth Management.
Wealth Doesn’t Have to be to tough and stressful
You are on this page and reading because you desire to create wealth.
You are stuck up How to save enough to Invest? Or Where to invest? Why Insurance is required and what type and how much insurance? You are worried about losing capital while investing. How to manage wealth in the ever-increasing inflation and reducing Interest rates?
You wanted to know ;
How to create wealth that last
How to Manage Wealth?
How to Protect Wealth?
How to transfer wealth to next
Apart from above technical stuff, you are
also required to work on right mindset to create wealth.
Well this is very common and
there is nothing wrong with you if you are struggling with with all these
queries. Every common man and Investor family has been where you are now.
Now It is not tough to find the right help and support – especially when you need it the most – from someone who’s been there, done that.
I’ve been there and I know exactly how it feels. When I started
my Wealth creation journey more than a two decade ago, I had the same
questions. And I didn’t have any of the answers. I had to find the answers
along the way.
But you don’t have to. You don’t have to go searching for the answers. You can focus on starting the wealth Creation Journey instead.
How? I’ll get to that in just a minute.
Before that, let me answer something more important.
Who am I, and why should you listen to me?
I am Brijesh
Parikh, an edupreneur now turned into wealth coach. Founder of PlanetWealth Financial Advisor, a
advisory firm helping families to create wealth, achieve financial freedom and
leave a financially worry free life. I am qualified Chartered Wealth Manager
and SEBI Registered Investment Advisor. Father of Two Children and Husband to
lovely wife. I am on a mission to help 1,00,000 families to leave a financially
worry free life and achieve financial freedom.
I am no
different from you.
I am also an
investor like you. I started my Wealth creation journey two decades ago. During 2002, I had procured study material of
PG Diploma in Financial Advising, a course launched by Indian Institute of
Banking and Finance ( IIBF) in collaboration with Australian Securities Institute to improve knowledge
about personal finance. During Studying the material, I realised my keen
interest into personal finance planning and advising, but time was not ripe for
such initiative. It was time when agents earning hefty commissions ( also
passing the same back to investor under the table) and I didn’t wanted to
practice the same. But In 2013 SEBI came up with SEBI Investment Advisor
Regulations 2013 and opened doors for Fees Based Advising Practice and I jumped
into the same as I wanted to practice Fiduciary ( Conflict Free, Putting Client
Interest Ahead of Self) advising and wealth coaching practice.
I had to learn
everything on my own.
What if I could create a program that
can help anyone who wants to start a Wealth Creation Journey ?
A program that can
Walk you through the entire journey in a simple yet effective way,
Be there to answer your questions,
Be as a guide when you are at a crossroad, and
Be your secret Coach.
A program that captures everything I learned in my more than two decade-long wealth creation journey and takes my learning to thousands of Investors around the country.
A program that is short, practical, and useful, and can be your quick reference guide or blueprint, or plan of action.
Wouldn’t that be great?
I thought it would.
Because there was no such program, I decided
to create one. And I’ve spent the last six months building it from scratch.
I gathered all the best know-how,
support, and resources I had and put them together into a single package to
make your success inevitable.
So here I are Presenting – the complete Wealth Creation program you need to start your Wealth Creation and make it successful.
This training program has
pre-recorded sessions covering all the topics that you need to begin your wealth
creation journey. Each session focuses on a single aspect of building and
growing your Wealth.
Here’s what you can expect:
Session-1 All About Wealth Creation : In this session you will learn Principles of wealth creation using Pyramid of Financial Planning
Session-2 Success Stories : Learn from 3 success stories
Session-3 Study Current Investment Scenario and a peep into future scenario to help create wealth creation plan future proof
Session-4 Goals Settings : Set your Family Financial Mission , Goals and Objectives
Session-5 What Skills and Traits are Needed to be Successful :
Session-6 Understand, Appreciate and Use of Compounding to create wealth
Session-7 Design a System to Create Wealth
Session-8 What’s Stopping you from Creating Wealth ?
Session-9 Journey to Achieve your Wealth Success
Session-10 How to use Principle of Accountability for Wealth Success
Session-11 Action Bias- Putting System to Work – Planning Vs. Actions, Internal Fears/lies that Stops you from Taking Actions and how to overcome the same
Session-12 Result Tracking – Monitoring your Wealth System
session was started on a very positive high note that about more than 80%
Participants completed their first assignment. Kudos to all who did it and all
the best for the second one.
Do -> Teach
It was emphasised that If you really wanted to internalise
your learning, you must apply. Its ‘ok’
if you make mistakes while initial application of Learning, but apply, you
is all about Communication
Deepak Explained that you must master 1to1 communication if you want to master 1tomany communication as part of digital marketing.
effective communicator, you need to be authentic. Everyone is tired of fake people in this
If you wish
to master marketing you must expose your self as much as possible by way of
travelling, reading, learning new languages and doing new things all the time.
your Audience ( Client Persona)
If you market everything to everyone, you end up selling no
one. As such you must find your niche
and as like every other now is the time for super specialisation means you need
to find your micro niche as well to have lesser sharp focus. If you can
identify your micro niche, you can focus your marketing efforts on the same and
as peter Drucker said ‘ The goal of marketing is to make a product that fits
the customer so well that it sells itself.
In order to create product that fits customer you must have your Client Persona also known as avtar. According to HubSpot Buyer personas are fictional, generalized representations of your ideal customers. They help you understand your customers (and prospective customers) better and make it easier for you to tailor content to the specific needs, behaviors, and concerns of different groups.
buyer personas are based on market research as well as on insights you gather
from your actual customer base (through surveys, interviews, etc.). Depending
on your business, you could have as few as one or two personas, or as many as
10 or 20.
Being a Wealth Manager and Wealth Coach I have visualised my
persona(s) based on my actual clientele and My facebook page audience. My
client Personas are as under ;
For creating client personas,
you can refer to following Information / questions;
information such as Jab, Career Path, Family
Information such name, age, Sex, Income, Location
– Means of communication
– Primary, Secondary
Pain Points etc
can we do to solve their problems?
Objections/ Their fears/ insecurities
To add to what was taught by Deepak Kankaraju, there is also
‘Negetive Persona’ is being practiced by Digital Marketer.
buyer persona is a representation of an ideal customer, a negative — or
“exclusionary” — persona is a representation of who you don’t want as a
include, for example, professionals who are too advanced for your product or service,
students who are only engaging with your content for research/knowledge, or
potential customers who are just too expensive to acquire (because of a low
average sale price, their propensity to churn, or their unlikeliness to
purchase again from your company.)
Based on your client/Customer Personas, you must follow
following while writing or engaging with your clients;
Though you are writing for 1 to many but your target should feel like 1:1
Email/Messaging are more powerful than Social keeping with Personification power of both medium
Your Writing should lead audience to read progressively. Means you Heading should lead to First line -> Second Line – > Third Line and so on.