Brexit- Impact on global markets- Volatility ahead!

Who will be the next RBI Governor?

Will GST bill get passed in the parliament soon?

These kind of headlines gets attention every day. The information flow is unstoppable and these headline news creates anxiety.

Human mind has a tendency to react without understanding the impact the news will have on your investment. Many a times, news doesn’t mean what we think it means. For some of us it’s kind of habit to seek news to get clues of what we should do.

Is it worthwhile to chew on the news flow which makes us react and fill in anxiety that leads to action which changes course of investments?

If you ask me this question, certainly not.

Things that matter

What is more important for an investor to concentrate on is—below 5 things

  • What are the life goals you want to achieve?

Financial decisions always are life decisions. Before you decide on financial goals you need to decide on life goals. Financial decision to make it concrete should align with your values and what you want to achieve in long term.

  • What is my savings to expense ratio monthly? Am I saving equal proportion of salary as it increases?

Saving is more important than earning more. As income increases lifestyle changes and it is difficult to cut on standard of living. It is kind of sticky.

  • Am I investing regularly? Is there discipline in this activity?

Investing regularly is more rewarding than finding the opportunity to invest and timing the market. There is nothing called as the best scheme or best time to invest. Instead of spending time on searching best financial product, spend time on what is more important.

  • Do I enjoy my wealth?

True essence of wealth creation is enjoying it. Do you worry about money?  In fact you should think more about having fun with loved ones.

  • Does more income is equal to more happiness?

Research says that Incremental Happiness doesn’t add on once you reach the point in earnings.  Personal relationships with loved ones are more crucial to happiness. Also buying experiences gives you more happiness than buying objects with money.

References  -Behavior Gap, Happy Money

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