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What You Should Learn From Investment Gurus - Outside View by PersonalFN

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What You Should Learn From Investment Gurus
May 23, 2016

"Aims differ as names differ. Wealth, power, and fame attract every human heart" goes an old English proverb. It does touch a nerve, doesn't it?

There is NO ONE who wants to subject himself/herself to abject poverty. NO ONE! Everyone wants to be well-off in their lives. Who doesn't want to enjoy the privileges that money brings along?

Money is FREEDOM. Money is POWER. You can contemplate sending your children to the best schools, take the family out on vacations, use the best medical facilities when needed and shun the constant worry of putting food on the table. It is the power that sets you free!

The irony is...

Although everyone wants to be rich and famous, few have the courage to work towards it. Most individuals search for an elusive elixir that will solve all there financial problems in the wink of an eye.

Individuals abhor the idea of Financial Planning, calling it dull and boring. They find jargons daunting and intimidating, further delaying the implementation of advice.

If you read our articles regularly, you know we have always tried to cut through the noise and share relevant actionable content.

This article we share powerful quotes from the Gurus of Personal Finance in the hope that it will take you a step closer to your goals. The best way to learn is to imbibe the teachings of the experts.

Financial Behaviour: It may sound old-school, but "financial discipline" is the bedrock of financial freedom. Work towards developing the right attitude about money that propels you towards your financial goals. As Dave Ramsey, a US based Financial Coach says, "Personal Finance is 80% behaviour and only 20% head knowledge."

Budget: As Carl Richards, a US based Financial Planner says, "Budget is awareness and who doesn't want it?" Keeping a budget helps you live within your means and avoid splurging on things that you cannot afford. It shows you care. It shows that you are ready to let go of the short term gratifications to achieve your long term financial goals.

"Don't tell me what you value. Show me your budget and I'll tell you what you value"-Joe Biden, Vice President, United States of America.

Credit Card Debt: We have written a lot on credit card debt, including actionable steps you should take to get out of it. It is bad and should be avoided at all cost. Period! Quoting Dave Ramsey, "Don't buy things you can't afford with money you don't have to impress people you don't like."

Emergency Fund: This helps you to navigate through life's uncertainties. Thumb rule is to hold 6 to 12 months of your expenses in liquid funds or sweep-in fixed deposits.

"Never invest emergency savings in the stock market" -Suze Orman, American author, financial advisor, motivational speaker, and television host.

Insurance: It is the most neglected and often mis-sold product in the country. Insurance is not an investment; it is tool to safeguard your financial goals against the perils of life. There is no substitute to purchasing the right amount of term insurance coverage. "It is better to have insurance and not need it, than need it and not have it"

Financial Goals: Everyone has dreams but few strive towards it. In the 2006 American Bibliographical drama film, "In the Pursuit of Happyness", Chris Gardner (Will Smith) tells his son Christopher Gardner Jr. (Jaden Smith), "Don't ever let someone tell you that you can't do something. Not even me. You got a dream, you got to protect it. When people can't do something themselves, they are going to tell you that you can't do it. You want something, go get it. Period."

Financial Planning: Your aspirations will materialise when you have expert guidance and milestones to evaluate the progress. A Financial Plan does that! It is your nautical chart to navigate through the treacherous seas of investments and avoid drifting away.

"Planning is bringing the future into the present so that you can do something about it now. Failing to plan is planning to fail."-Alan Lakein, Author.

Since 1999, we have embarked on a mission to provide ethical advice to all who seek it. Over the years, we have written countless articles on personal finance and helped many families with their finances. (Support us as we continue to do so)

What we have realised through our past experience is the only thing that holds you back from achieving your dreams, is YOU!

Sounds philosophical? Sure, it does! Have you heard it before? Probably a million times Have you introspected? Probably not.

Recollect the words of Ralph Waldo Emerson, the famous American essayist, lecturer, and poet, "The world makes way for the man who knows where he is going."

Now is the time... Stop procrastinating. It is time to put your words into action.

We leave you with a verse from Walter D Wintle's poetry: The Man Who Thinks He Can

"Life's battle don't always go to the stronger or faster man,
But sooner or later the man, who wins, is the man who thinks he can."

PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.

Disclaimer:

The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

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