An Ode to Nonviolent Communication

Holding Hands - Nonviolent Communication

Happy to announce I am now 100% nonviolent after reading Nonviolent Communication (NVC) by Dr. Marshall Rosenberg.

I am also 100% lying.

Because, like all good things in life, NVC takes effort. And practice. Having just finished the book, I only have an idea of what to say but no practical experience.

Conflict resolution is an interesting topic to me since we have to deal with conflicts in every aspect of our lives. How can we be stern and kind at the same time? How can we get the best out of any situation? Being able to communicate effectively is an art in itself.

I have always taken away something, if not everything, from every book I’ve read – a new kind of awareness. What I took away from this one was to take a moment to step back and focus on needs instead of the more apparent negatives during an argument. It helps with forgiveness. It keeps you calm. So it’s a win-win overall.

What is NVC?

Nonviolent Communication (NVC) is a practice that must be consciously ingrained in our daily interactions to see results. It includes letting go of your judgments and interacting with the other person to focus on each other’s needs instead of playing the blame game. We attribute violence to physical and mental abuse. But here, the author talks about negative communication as violence too. Things like incessant blaming, judging, silent treatment, and mocking all form a part of violent communication.

So here are some of the key takeaways from the book:

Focusing on needs

The four components of NVC include: what we are observing, feeling, and needing, and what we would like to request to enrich our lives. To summarize, the two parts of NVC are 1) expressing honestly 2) receiving empathically.

Connect your feeling with your need: “I feel.. because I need..”

Something you need to keep repeating to yourself whenever you are agitated. What is it that you need? Focus on each other’s primary emotion (need) instead of lashing out at each other.

Avoiding blame and judgment

Why would people want to tell the truth, knowing they will be judged and punished for doing so?

The more people hear blame and judgment, the more defensive and aggressive they become and the less they will care about our needs in the future. So even if our present need is met in the sense that people do what we want, we will pay for it later.

Makes you think, doesn’t it? Why would someone tell you the truth if they knew they would be misunderstood or shouted at? I feel the more we make someone feel uncomfortable and “dirty” for telling us the truth, the more they will hide it the next time.

Being empathic even with people who hurt you

Blaming is easy. People are used to hearing blame; sometimes they agree with it and hate themselves – which doesn’t stop them from behaving the same way – and sometimes they hate us for calling them names – which also doesn’t stop their behavior. If we sense blame entering their mind, we may need to slow down, go back, and hear their pain for a while more.

NVC stresses hearing the other person a while longer and understanding their feelings before we put forward our requests. Such a method lets the other person relax and be in a proper frame of mind to receive and reciprocate.

Conflict Resolution

The more experience I have gained in mediating conflicts over the years and the more I’ve seen what leads families to argue and nations to go to war, the more convinced I am that most schoolchildren could solve these conflicts. If we could just say, “Here are the needs of both sides. Here are the resources. What can be done to meet these needs?,” conflicts would be easily resolved. But instead, our thinking is focused on dehumanizing one another with labels and judgments until even the simplest of conflicts becomes very difficult to solve. NVC helps us avoid that trap, thereby enhancing the chances of reaching a satisfying resolution.

Why can’t warring countries adopt this methodology, sit together, and discuss resolutions in a non-confrontational way? The world would be a more peaceful place to live in.

An Ode to Retiring Rich

I have seen senior citizens in India struggling 5-10 years post-retirement because they didn’t have enough savings. Their financial freedom is ultimately compromised as they become dependent on their children.

One example is my own father.

My dad was the only earning member of the entire family. My mother derived her happiness by not involving herself in financial matters. Numbers made her anxious, and she was fine letting dad make all the financial decisions. He enjoyed a plush job in the Middle East, and we had a wonderfully privileged life. I am eternally grateful for everything that he has provided for us. I went to the best of schools/universities and worked for a bit in the Middle East. Then we all decided to pack our bags and head back to India after dad’s retirement – a much-needed rest for him after 30+ years of service.

Everything went on fine until the 5^th year of my dad’s retirement. His anxiety was apparent; he was concerned whether his corpus would last his entire lifespan. I had already started working by then, and I started pitching in. Slowly his mental health deteriorated. It may have been due to a combination of stress and disappointment in his financial matters and his physical health issues. The doctors were unable to help him. My dad, who was an active, cheeky, energetic man, turned silent, desolate, and serious. Since I stayed near my parents, I was a witness to all that they went through concerning their finance. My dad wanted to resume work in his mid-60s, despite his physical limitations, no thanks to his depleting retirement corpus.

I am unsure what went wrong because I never discussed it with my dad. He’s no more (he passed away a couple of years back). When I look at his bank balance, I have so many questions. The most glaring one was – “Where did all the money go?” Then there are others “Did he not save?” “Maybe he saved, but it was not enough for inflation?” “Did he make any bad investment choices?” “Did he not invest in the right retirement schemes?” “Would it have helped if he had invested in some equity, mutual fund, or pension scheme?” My dad had only invested in Fixed Deposits.

You learn by observing the people around you. It was only after I saw my dad’s financial condition that I became aggressive with my own savings and investments. I have no idea whether my plan will work for me in the long run, but I can try. I do not have many lifestyle demands, and I am a minimalist, so that helps.

In the quest to achieve financial independence, I have been reading a lot of personal finance books. My initial few reads were meant for the American audience and they did not help me much. I wanted to read books specific to India. That’s how I first landed upon Monika Halan’s Let’s Talk Money. This has to be my favorite Indian personal finance book so far. Everything is explained clearly and concisely. I have re-read it a couple of times in the hope that her words would sync in deep and become second nature for me. She offers instructions on how to invest for each age group.

The next book that is good for Indians looking into learning personal finance is PV Subramanyam’s Retire Rich. He is a Chartered Accountant who gives some good, solid, no-nonsense advice on how you can carry about your investments. His policy is investing in yourself first, before anything else. Keep aside some money for your retirement and invest in other people and things only after that.

A non-Indian book that greatly impacted me was “The Psychology of Money.” My favorite quotes from the book are also listed on this blog.

Retiring rich is undoubtedly a priority for me. Keep in mind that the word “rich” is subjective. I want to retire “rich” enough for my own needs, but that amount might not be “rich” enough for you. So the first step is to calculate your retirement corpus based on your annual expenses. There are enough online retirement calculators to help you out. If you are in your 20s, start saving/investing now. I am in my 30s now, and my only regret is that I did not start sooner.

An Ode to Introversion and Quietude

In a world where extroverts are admired and introverts are judged, a book like Quiet by Susan Cain can prove transformative. It might be because Susan Cain herself is an introvert. No one can truly understand an introvert better than another introvert. Extroverts who have taken the time to introspect and reflect on an introverted loved one’s personality trait might also understand and respect introversion. However, they are few and far between.

For most of my life, I was told to talk more, be more extroverted, or “smart”. My introversion was considered a defect, more like a disease I needed to be cured of. I believed it to be true as no one told me otherwise. It wasn’t until I discovered the internet that I realized there are others like me. I was relieved to find people who shared the characteristics that I thought were unique to me. It provided much-needed validation. I started understanding introversion. I started understanding myself from the lens of a new unacknowledged world.

Introverted kids often feel like a misfit because of the constant judgment. Is it any surprise that they often grow up to become shy and underconfident? Nothing undermines someone’s self-confidence more than being repeatedly told they are not okay the way they are.

People find it hard to accept that I’m an introvert now that I’m an adult. I play my part well. Or rather, I have trained myself to play the extroverted part well. I have learned over the years to create this impressionable extroverted façade to gain acceptance into this world of Extrovert Ideals, all for the sake of attaining “normality”. However, I can keep up the act only for a few hours before I feel this mad urge to rush back home to re-energize – in short, to slip into my pajamas and dive into the comfort of books.

Susan Cain covers this façade (of extroversion) and more in her book. The case studies covering different aspects of introversion are a revelation. In the real world, extroversion still gets the upper hand at school, work, and every phase of life. Your competency is determined based on how extroverted you are. The book explores why a teacher, parent, or employer needs to understand the quantifiable benefits introversion brings to the table. The author explains how to reach out to the hidden treasures buried among the buzz and commotion. The solution is pretty simple: the world only needs to stop talking for a little while, introspect a bit, and try listening instead.

13 Thought-Provoking Quotes From Colleen Hoover’s It Ends With Us

I’ve read a couple of Colleen’s books before. I knew I was in for another treat when I picked “It Ends With Us” after reading a couple of positive reviews by fellow bloggers. In this book, the author’s personal perspective makes the story stand out among others. In her own words, “This was not entertainment for me. It was the most grueling thing I have ever written.” The despair is apparent in her characters – their anguish, suffering, and hopelessness. There were tears shed, not going to lie. It’s impossible not to. If you have ever lost a loved one, you would be able to relate to the agonizing emotions expressed so articulately in the book by Colleen. It Ends With Us is filled with introspective, profound quotes about life, love, and everything in between. Sharing a few of my favorites here.

All humans make mistakes. What determines a person’s character aren’t the mistakes we make. It’s how we take those mistakes and turn them into lessons rather than excuses.

Life is a funny thing. We only get so many years to live it, so we have to do everything we can to make sure those years are as full as they can be. We shouldn’t waste time on things that might happen someday, or maybe even never.

Maybe love isn’t something that comes full circle. It just ebbs and flows, in and out, just like the people in our lives.

Imagine all the people you meet in your life. There are so many. They come in like waves, trickling in and out with the tide. Some waves are much bigger and make more of an impact than others. Sometimes the waves bring with them things from deep in the bottom of the sea and they leave those things tossed onto the shore. Imprints against the grains of sand that prove the waves had once been there, long after the tide recedes.

Sometimes even grown women need their mother’s comfort so we can just take a break from having to be strong all the time.

I think that’s one of the biggest signs a person has matured—knowing how to appreciate things that matter to others, even if they don’t matter very much to you.

Just because someone hurts you doesn’t mean you can simply stop loving them. It’s not a person’s actions that hurt the most. It’s the love. If there was no love attached to the action, the pain would be a little easier to bear.

If I had to compare this feeling (of separation) to something, I would compare it to death. Not just the death of anyone. The death of the one. The person who is closer to you than anyone else in the whole world. The one who, when you simply imagine their death, it makes your eyes tear up. It’s an astronomical amount of grief. An enormous amount of pain. It’s a sense that I’ve lost my best friend, my lover, my husband, my lifeline. But the difference between this feeling and death is the presence of another emotion that doesn’t necessarily follow in the event of an actual death. Hatred.

I feel like everyone fakes who they really are, when deep down we’re all equal amounts of screwed up. Some of us are just better at hiding it than others.

I don’t think being a little guarded is a negative thing. Naked truths aren’t always pretty.

Sometimes you can’t control where your mind goes. You just have to train it not to go there anymore.

Sometimes the things that matter to you most are also the things that hurt you the most. And in order to get over that hurt, you have to sever all the extensions that keep you tethered to that pain.

Cycles exist because they are excruciating to break. It takes an astronomical amount of pain and courage to disrupt a familiar pattern. Sometimes it seems easier to just keep running in the same familiar circles, rather than facing the fear of jumping and possibly not landing on your feet.

An Ode to Sound Investing Advice from the Intelligent Investor – Part 3

So we are now into the final set of quotes from The Intelligent Investor by Benjamin Graham. I have taken great care to choose the quotes that would make sense to a larger audience and not just equity investors. The book, in my opinion, is quite dry. But then, what can you expect from an investing book? Nevertheless, the advice imparted by Benjamin Graham is worth considering. Being not much of a speculator myself, his thoughts resonated with me.

Without further ado, let’s start Part 3.

It is easy for us to tell you not to speculate; the hard thing will be for you to follow this advice. Let us repeat what we said at the outset: If you want to speculate do so with your eyes open, knowing that you will probably lose money in the end; be sure to limit the amount at risk and to separate it completely from your investment program.

The investor can scarcely take seriously the innumerable predictions which appear almost daily and are his for the asking. Yet in many cases he pays attention to them and even acts upon them. Why? Because he has been persuaded that it is important for him to form some opinion of the future course of the stock market, and because he feels that the brokerage or service forecast is at least more dependable than his own.

Those formulas that gain adherents and importance do so because they have worked well over a period, or sometimes merely because they have been plausibly adapted to the statistical record of the past. But as their acceptance increases, their reliability tends to diminish. This happens for two reasons: First, the passage of time brings new conditions which the old formula no longer fits. Second, in stock-market affairs the popularity of a trading theory has itself an influence on the market’s behavior which detracts in the long run from its profit-making possibilities.

The most realistic distinction between the investor and the speculator is found in their attitude toward stock-market movements. The speculator’s primary interest lies in anticipating and profiting from market fluctuations. The investor’s primary interest lies in acquiring and holding suitable securities at suitable prices.

The happiness of those who want to be popular depends on others; the happiness of those who seek pleasure fluctuates with moods outside their control; but the happiness of the wise grows out of their own free acts.
Marcus Aurelius

If you listen to financial TV, or read most market columnists, you’d think that investing is some kind of sport, or a war, or a struggle for survival in a hostile wilderness. But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.

The whole point of investing is not to earn more money than average, but to earn enough money to meet your own needs.

Putting up to a third of your stock money in mutual funds that hold foreign stocks (including those in emerging markets) helps insure against the risk that our own backyard may not always be the best place in the world to invest.

The most basic possible definition of a good business is this: It generates more cash than it consumes. Good managers keep finding ways of putting that cash to productive use. In the long run, companies that meet this definition are virtually certain to grow in value, no matter what the stock market does.

When you research a company’s financial reports, start reading on the last page and slowly work your way toward the front. Anything that the company doesn’t want you to find is buried in the back—which is precisely why you should look there first.

Graham’s criterion of financial strength still works: If you build a diversified basket of stocks whose current assets are at least double their current liabilities, and whose long-term debt does not exceed working capital, you should end up with a group of conservatively financed companies with plenty of staying power.

A small percentage of investors can excel at picking their own stocks. Everyone else would be better off getting help, ideally through an index fund.

At some point in its life, almost every stock is a bargain; at another time, it will be expensive. Although there are good and bad companies, there is no such thing as a good stock; there are only good stock prices, which come and go.

As Graham liked to say, in the short run the market is a voting machine, but in the long run it is a weighing machine. Yahoo! won the short-term popularity contest. But in the end, it’s earnings that matter—and Yahoo! barely had any.

If you buy a stock purely because its price has been going up—instead of asking whether the underlying company’s value is increasing—then sooner or later you will be extremely sorry. That’s not a likelihood. It is a certainty.

Losing some money is an inevitable part of investing, and there’s nothing you can do to prevent it. But, to be an intelligent investor, you must take responsibility for ensuring that you never lose most or all of your money.

For the intelligent investor, Graham’s “margin of safety” performs the same function: By refusing to pay too much for an investment, you minimize the chances that your wealth will ever disappear or suddenly be destroyed.

Ultimately, financial risk resides not in what kinds of investments you have, but in what kind of investor you are. If you want to know what risk really is, go to the nearest bathroom and step up to the mirror. That’s risk, gazing back at you from the glass.

Part 1

Part 2

An Ode to Sound Investing Advice from the Intelligent Investor – Part 2

I feel a great part of your investing journey lies in being indifferent. Indifferent to how the market reacts, indifferent to external influences such as your family and friends. I am slowly learning not to check the market trends too often, not to get swayed by euphoria or unwarranted skepticism. Of course, this works for me because I am not in direct equity. Those who are invested in stocks might have to be more vigilant?

Anyway, in continuation with my previous post, here’s the second part of some of the best investing quotes from the Intelligent Investor by Benjamin Graham. I feel a lot of people missed out on Graham’s advice on being safe in investing. We often hear from investment gurus how we should invest more in equity when we are younger. But this book actually tells you to keep your own liabilities and responsibilities in mind before you invest more than you can chew. His whole book is about putting your safety, lifestyle, and goals first. A young investor can be conservative too if in debt or caught up with responsibilities. Life happens and there is no one-size-fits-all kind of investment. Keeping your risk profile in mind before investing is key and Graham actually digs deep into that.

Since the profits that companies can earn are finite, the price that investors should be willing to pay for stocks must also be finite. Think of it this way: Michael Jordan may well have been the greatest basketball player of all time, and he pulled fans into Chicago Stadium like a giant electromagnet. The Chicago Bulls got a bargain by paying Jordan up to $34 million a year to bounce a big leather ball around a wooden floor. But that does not mean the Bulls would have been justified paying him $340 million, or $3.4 billion, or $34 billion, per season.

The only indisputable truth that the past teaches us is that the future will always surprise us—always! And the corollary to that law of financial history is that the markets will most brutally surprise the very people who are most certain that their views about the future are right. Staying humble about your forecasting powers, as Graham did, will keep you from risking too much on a view of the future that may well turn out to be wrong.

A cynic once told G. K. Chesterton, the British novelist and essayist, “Blessed is he who expecteth nothing, for he shall not be disappointed.” Chesterton’s rejoinder? “Blessed is he who expecteth nothing, for he shall enjoy everything.”

The punches you miss are the ones that wear you out.

—Boxing trainer Angelo Dundee

For the aggressive as well as the defensive investor, what you don’t do is as important to your success as what you do.

Buying a bond only for its yield is like getting married only for lust. If the thing that attracted you in the first place dries up, you’ll find yourself asking, “What else is there?” When the answer is “Nothing,” spouses and bondholders alike end up with broken hearts.

The lesson is clear: Don’t just do something, stand there. It’s time for everyone to acknowledge that the term “long-term investor” is redundant. A long-term investor is the only kind of investor there is. Someone who can’t hold on to stocks for more than a few months at a time is doomed to end up not as a victor but as a victim.

Unfortunately, for every IPO like Microsoft that turns out to be a big winner, there are thousands of losers. The psychologists Daniel Kahneman and Amos Tversky have shown when humans estimate the likelihood or frequency of an event, we make that judgment based not on how often the event has actually occurred, but on how vivid the past examples are. We all want to buy “the next Microsoft”—precisely because we know we missed buying the first Microsoft. But we conveniently overlook the fact that most other IPOs were terrible investments.

The large companies thus have a double advantage over the others. First, they have the resources in capital and brain power to carry them through adversity and back to a satisfactory earnings base. Second, the market is likely to respond with reasonable speed to any improvement shown.

Actually, the typical middle-sized listed company is a large one when compared with the average privately owned business. There is no sound reason why such companies should not continue indefinitely in operation, undergoing the vicissitudes characteristic of our economy but earning on the whole a fair return on their invested capital.

It requires a great deal of boldness and a great deal of caution to make a great fortune; and when you have got it, it requires ten times as much wit to keep it.
Nathan Mayer Rothschild

So how many of the Forbes 400 fortunes from 1982 remained on the list 20 years later? Only 64 of the original members—a measly 16%—were still on the list in 2002. By keeping all their eggs in the one basket that had gotten them onto the list in the first place—once booming industries like oil and gas, or computer hardware, or basic manufacturing—all the other original members fell away. When hard times hit, none of these people—despite all the huge advantages that great wealth can bring—were properly prepared. They could only stand by and wince at the sickening crunch as the constantly changing economy crushed their only basket and all their eggs.