Money is simple – it is a promise.
Made by the Central Bank of the country, to honor it when presented, and to assign a pre-determined value to it.
A piece of paper, made important because of this promise.
Handling money however, is a different ballgame altogether.
We spend our lives trying to earn it, and hold on to it…and what we have, we try to maximize the returns on it.
In the good old days, multiplying money mainly meant investing it in property or gold. Business was not for the faint-hearted, and the stock market was a mirage for most people.
Come 2021, and management of money has been made so simple that you can do it from your phone – anywhere, anytime.
I am currently in the process of opening an NRI account in an Indian bank, so that I can access Zerodha NRI brokerage, so that I can invest in “small cases” (check out https://www.smallcase.com). That’s three levels down, but as simple as connecting one to another. If you are in India, it is even simpler – one can get it done online!
These sites don’t just provide services, they educate as well. All you need is an internet connection and a connected intent, with a dash of patience and a lack of greed. That’s it. For the rest, there is Fintech.
I sometimes feel amazed at the kind of information that is out there, but what is even more amazing is the fact that many people just don’t look. They are happy spending hours on social media, but when it comes to investing their own hard-earned money, they have no time.
“I cannot understand all this”, is the common excuse. Yes, would have granted it in the 80s and the 90s. But not today. Any site you google will tell you the basics of investing, in an easy-to-understand manner, with model portfolios and even trackers so that you can see where you stand – all this displayed graphically, in an app. INDMoney is one such application.
You don’t have to research all the stocks – there are experts for that. You have to read, learn and research on the options that are out there so that you can make optimum decisions. Don’t go with that hot tip you get from a friend on WhatsApp – even if it is good, you would lose out on doing the work yourself. Apps such as smallcase do all the research for you -what you need to do is read up on that at least.
And no, I am not plugging any specific app here – just giving examples.
One more thing – teach your kids the basics about money management. We spend a large part of our lives studying to get great grades and land a high paying job to move into a successful career path, so that we can earn and live comfortably. But it is a pity that no one teaches kids on how to manage those finances once they get there. This should be a subject in school, and not just that “piggy-bank” wala tip. I guess today’s kids have outgrown it.
This is not about becoming a millionaire, or leaving your daily job and trying your luck in the stock market. People who invest without any research and preparation, usually end up burning their fingers. Money management is about building a sustainable portfolio that goes beyond money in the bank, to take care of various needs as your progress through life. It is YOUR money, and you should be able to manage it. Simple!
Do reach out if you need any assistance – happy to discuss over a cup of tea.
See you tomorrow!