Last Updated on Mar 8, 2022 by Aradhana Gotur
The sense of being independent is a different ‘high’. When our country got independence from the British Raj, it was a moment of ecstasy. Well, the sense of being financially independent is not too different. Just imagine the joy of being in the know of what is likely to shape the future of your purse strings! Being financially independent starts with being financially aware.
The purchasing power of money today versus the value of the same money over the next few decades will not be the same. That is because we have a villain called inflation in our real lives that tends to eat into our earnings constantly. Is it possible to slay this villain? Why not! If we see that happening in ‘reel’ life all the time, why not slay the villain in real life. The key to this is to identify investments with the potential to generate higher returns than the prevailing inflation rate. Can all asset classes do that for us? If we look into the past as a guide, we see that there has been one asset class that has demonstrated the ability to beat inflation thereby aiding wealth creation – and that protagonist is equities.As Alia Bhat says in the movie Gangubai Kathiawadi, “Shakti (strength), Sampatti (Wealth), Sadbuddhi (good sense) yeh teeno hi auratein hai….” So invoke your Shakti and enjoy your journey towards being financially independent. Click To Tweet
Despite ups and downs, we have seen that equities tend to do well, even more in an economic upcycle. Hence, irrespective of gender, age, profession and other factors, it is important to have equities as a key element in one’s portfolio. Does this mean every other asset class should be ignored? Not at all. We need to follow asset allocation basis our risk profile and the intended investment horizon. You may not know it all – thus, contrary to the popular belief, DIY (do it yourself) may not be a great technique in your journey to financial independence. Do hire the services of an advisor/distributor who can aid in your financial planning process.
Finally, it’s about making money with joy. As Alia Bhat says in the movie Gangubai Kathiawadi, “Shakti (strength), Sampatti (Wealth), Sadbuddhi (good sense) yeh teeno hi auratein hai….” So invoke your Shakti and enjoy your journey towards being financially independent.
Disclaimer: Views are personal and do not reflect the views of Kotak Mahindra Asset Management Company Limited.