Be Target-Driven, Not Competitive in Personal Finance

As I sat down with Kiran, a successful entrepreneur and investor, I asked him about his approach to personal finance. Kiran, like many of us, had often found himself comparing his financial progress to that of his peers. However, he had recently begun to question the wisdom of this approach.

?

"I've been investing for years, but I've started to feel like I'm in a rat race," Kiran said. "I'm constantly comparing my returns; wealth to those of my friends and colleagues. It's exhausting and, frankly, unfulfilling."

I nodded in agreement. "Kiran, you're not alone. Many investors fall into the trap of comparing themselves to others, an approach which can be detrimental to their financial well-being. Whether you need to buy a Maruti or Merc should be derived from your need & future cash flows rather than buying something to compete with friends or family."

"Why is that?" Kiran asked, intrigued.

"When you're focused on beating others, you may take on excessive risk or make impulsive buying decisions. You may also have to compromise on your own financial priorities and goals. Instead of competing with others, I recommend focusing on your own targets”

"But how do I do that?" Kiran asked.

"It starts with setting clear, personal financial goals & prioritizing them," I explained. "Are you saving enough for retirement, children's education, vacations, medical contingencies after paying your EMIs? Have you created distinct baskets for short term, medium term & long term goals? Once you have a clear understanding of your goals, you can create a tailored financial plan to achieve them."

"That makes sense," Kiran said. "But how do I avoid the temptation to compare myself to others?"

"It's not easy, but it's essential to stay focused on your own journey," I advised. "Celebrate your successes and learn from your setbacks. Avoid getting caught up in social media or watercooler conversations about investments. Instead, track your progress toward your own goals."

Kiran nodded thoughtfully. "I think I need to shift my mindset. It's not about beating others; it's about achieving my own financial freedom."

I smiled. "Exactly Kiran, like finger print each person or a family has very distinct personal goals. By focusing on your own target, you'll be more likely to make informed, thoughtful financial decisions. You'll avoid unnecessary risk and stress, and you'll be better equipped to achieve your unique financial goals."

As our conversation came to a close, Kiran looked more relaxed and focused. He had begun to see the wisdom in being target-driven, rather than competitive, in his personal finance journey.

If you're like Kiran, and you're ready to shift your focus from competing with others to achieving your own financial goals, I encourage you to take the first step today. Set clear, personal financial goals, create a tailored financial plan, and stay focused on your own target. With discipline and patience, you'll be on your way to achieving financial freedom & celebrate abundance of joy & happiness.

Happy Investing!