In our discovery process, we ask this question: Tell us about your best financial decision. We get fascinating answers. E.g.
1. I sold my ESOP (as soon as it is exercised) as it is all profit.
2. 30 year old tells me I bought the farmland because I want to farm in my ’50s.
3. Ardent Fixed deposit holder feels proud about applying for IPO and booking profits.
These are profound financial decisions that impact your life positively. Now from where do you get prompted to decide on these situations? What are the real motivations behind these decisions?
You are a continuum of life. Your Financial decisions are motivated by your experiences, learnings, and surroundings. You form your values continuously and gradually from your family, friends, etc.
“Your values precede your decisions”!.
You want to lead a good life and achieve all the milestones or fund your desires(goals). It is a precursor to knowing your values to decide upon your financial milestones. We help our prospectus exactly in finding the Whys behind every decision.
“Money decisions are emotional decisions, and you need to know the emotions driving them.”
Money decisions that you make or milestones you have should make you happy, fulfilled, satisfied, etc. It should indicate/define that life is well lived for you; That is the ultimate use of your wealth.
As I mentioned, life is a continuum; your definition of a well-lived life evolves from time to time; what is essential is to realign and recalibrate your Goal Plan. (of course, based on values)
To sum up, good money decisions align with your values; achieving them leaves you with a positive impact.
Personal finance is more personal than finance. Each decision is good for them and their situation, which empowers them. Some of our Client’s Good Money Decisions examples are as follows to bring home the point.
1. Closed PPF ( guaranteed tax-free return investment) to repay the home loan, as debt concern ate away the peace. This way, the client freed himself from debt anxiety and with even more surplus to achieve other goals.
2. Consciously took a call to use RSUs to diversify into Financial Assets, though his company stock was on the upward spiral, hence avoiding fear of Concentration risk where he works.
3. Consolidated all investments in Small Cases, Bill discounting, and P2P to get a more professional edge and leave with less worrying about tracking and rebalancing. That left him with more time for himself.
How many such good money decisions do you want to make?