How Alia’s growing pains enabled her to live a financially disciplined life

In part 3 of our series on working women and their relationship with investing/finance, we spoke to Alia, a 44 year old Kolkata based technology leader at a leading software company. Please note the conversation has been edited and condensed for clarity. If you would like to speak to us about your investing experience, please reply in the comments below.??

What do you do? What role did money play in your career choice?

I am in a leadership role at a US based company. I was a good student in school. I liked Maths the most, so when it came time to pick a specialisation, I chose computer science.?

When given a chance I have almost always prioritised my family and kids over money. As a result I have not made too many switches in my career. Despite being very qualified, these are sacrifices we all end up making. I live a simple life and money hasn't been the sole criteria for choosing a job. Work exposure and connection with colleagues is more important to me.?

I lost my father when I was 18, so saving for a rainy day fund is very important for me. I think his death made me more careful with money.?

What percentage of your income do you save every year?

"My husband & I are savers and we are careful with money"        

I don't think about savings in percentage terms. My husband and I are savers and we are generally quite careful with money. Every month whatever is left after paying for EMIs and other things, I transfer to our joint account. We have a financial planner who helps us invest in the stock market. We invest in stocks and mutual funds including through systematic investment plans (SIPs).?

Tax saving options are minimal in India and it is usually covered by my firm’s contribution to my provident fund (PF)

What do you want to splurge on, save for, and invest in 2023???

I travel often to the USA for work so I get to meet my extended family there quite often, as well as, travel/shop there.?

On the topic of splurging, I am very excited to meet my sister and some friends in Dublin for a week-long vacation in May. I have already budgeted for this trip so I am not worried about the costs.?

Who do you bank and/or invest with? What do you like/dislike about the relationship? ?

My salary gets credited at Private bank X. I do not invest with them because they are always recommending their own products. I feel my banker is interested in doing his sales quota and is not interested in my well being.?

How would you categorise your relationship with money? Do you worry about it?

I know we are doing well. But I worry about retirement and whether we will be able to afford it. I sometimes compare myself with my sister and mother who have worked for the government and hence will get pensions. I do not have?that safety net in the private sector. This makes me anxious even though we have invested well and keep our spending well within our income.?

Do you invest in mutual funds, stocks or gold? If not, what has stopped you from exploring mutual funds and stocks till date, what stops you from doing it now?

"I  add any extra money I have left over in my bank account to stocks 
and mutual funds"        

Mutual fund investing is mostly through SIPs. I also keep adding any extra money I have left over in my bank account to stocks and mutual funds.?

I do not think gold is a good investment or an investment at all. I feel it is a national burden for India! Why do we Indians buy so much gold? I have not spent any significant amount on jewellery in the last 8-10 years. Anyway, you wear gold jewellery once in a while. I have bought some gold funds on my financial planner’s recommendation, but only to diversify.?

"I do NOT think gold is a good investment or an investment at all. 
Why do we Indians buy so much gold?"        

If you could time travel, what is the one message you would tell your 21 year old self about money, investing and finance?

2008-09 was a game changer in my relationship with money. I lost a lot of money in the market crash. It shocked me to my core. Now I spend more time understanding the complexity behind the financial instruments and I am aware of what I own in my portfolio. But I believe I still have some distance to travel when it comes to understanding the financial jargon.