Ever wondered about "PERSONAL FINANCE"?

Have you ever heard this word?

Have you considered the importance of personal finance and investing in your life?

Personal finance is one of the most important pillars life of an individual in today’s world. If you search for the meaning of it, on internet, you will know what it is and how important it is for you as an individual.

Swapnil’s objective here is to provide you certain insights into the world of investing, which is one of the pillars of personal finance. these topics are very subjective in nature, wherein decision making differs from person to person, where one thing that might work for one person might not work for another.? The main aim here is to give you a perspective on the frame of mind, that, if you realize it, will help you achieve the above mentioned objectives

Did you know that creating wealth through investing is different from becoming rich through investing?

The bottom line that everyone should chase is “to create, preserve and enhance your wealth” through investing”. I have purposely not used the word “to become rich through investing” because, rather than creating wealth, more wealth is destroyed in trying to become rich through investing. You can become rich through doing what you are good at. If you are a good Chartered Accountant, focus on being a good Chartered Accountant. That will make you rich. Also, creating your wealth through investing is a process which for most people, would be boring at best. Think of investing as growing a tree. It takes a lot of time and effort for a seed to grow into a tree. lot of patience and discipline are required to follow the process of creating wealth through investing.

Are you navigating through the noise and temptations of investing in modern times ?

With times changing very fast, where there is a lot of noise in the form of misleading information that deviates us from our objectives, it is very difficult to resist the temptations created by the social media fin-fluencers of creating quick and guaranteed money. Such acts are designed to just create a fear of missing out, leading to hasty and harmful decisions, especially if you are new to the world of investing. Also, how exciting it is to hear that a company's stock has gone 10x or 100x in a certain period of time. but what should we do with such information. Sure, compounding does work wonders. But it is an information of the past. Can anyone find any company in the present which can create such wealth in the future? I am not saying it is impossible. But, if you consider stock market as an avenue for investing and creating wealth, then you also have to be open to accepting the fact that it is, at the very least, the most uncertain place to invest. I am not trying to instill any sort of fear in you, but it is very important to be rational and realistic when it comes to investing.

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What role does luck play in your investment journey?

Luck is a very fascinating word. It, its very core, it means being in the right place at the right time and doing the right thing. It is easy to understand whether one was lucky or not only in the hindsight. Nobody knows for sure what the future will turn out to be. One of the greatest investors of our time, Warren Buffet, considers himself lucky when it comes to investing. So, the role of luck can never be underestimated in investing where many things are out of our control.

Are you ready to build a solid foundation for your financial future?

As you start and move ahead in your investing journey, you will gradually begin to realize the importance of process. It is your conviction in the process that will help you get smooth sailing in your investing journey. Just as, only the food that you are able to digest gives you strength, in the same manner, only the knowledge which you can execute will help you in your journey. You can always start small and go on adding as you learn more. What will help you for long term wealth creation is the experience you have gained and the temperament you have built along the way. And no matter how much things are out of control; you will always be responsible for the financial decisions you make. With the world of finance getting more and more complex it is very important to build a strong educational foundation when it comes to personal finance and investing. You can engage with a professional advisor who can make you aware of the different financial products available in the market and the kind of risk and reward associated with it.

Is there a way to avoid financial pitfalls?

There are a few basic things one should follow to save themselves from making big financial blunders:

Have clear priorities in life when it comes to money; Choosing the kind of lifestyle that we want to have with the money that we make will have a lot of influence on the saving and investing decisions that we make.

Don’t invest aggressively, the money, that you need to expend in the foreseeable future. Think about the associated risk and the financial commitment that you have before investing that particular sum of money.

Always have an emergency fund for products that are liquid and have a low risk profile; With uncertain times, it is always good to have emergency funds that are required to meet basic necessities in instruments that are liquid and very less risky in nature.

By making informed decisions today, we can secure a brighter and more stable financial future for ourselves and our families.