An Ode to Learning Personal Finance On Your Own

Photo by Anna Nekrashevich on Pexels

I am no personal finance guru.

I am no millionaire. Far from it.

I am just another person hoping for financial freedom one day.

But since the last few years, I have been enjoying reading about personal finance, researching and then taking action. As mentioned in my previous post, I have no clue where this journey will take me, but it has been an enlightening one so far.

I must have been 10 or 11 when a friend’s father asked a question to a bunch of kids (including me) at a party – “How much of your salary should you save once you start earning?” I remember just staring back at him. I had no clue. To be fair, which 10-11 year old would? Our parents don’t usually ask us such things. He answered “20%” and since then that percentage has stuck in my mind, living rent-free, refusing to leave.

20%. I took this number with me. When I started working, it was the first thing I thought of. Makes me wonder – if only kids were taught personal finance at school. They would grow up to be better at managing money.

I am 36. There are times I wish I had started my journey on learning about personal finance a bit sooner. I try to comfort myself saying I did not have the resources I do now back then. Our resources were our parents, relatives, friends and all those people we regularly interacted with. In short, people who were not financial experts. My 20s and early half of my 30s were mostly spent in a bubble, thinking Fixed Deposits (FDs) are the way to go. When I started researching, all the info I got just blew my mind.

If you are in your 20s, this is the best time to learn about personal finance and invest because there are so many valuable free guides online. Plus, you have age on your side!

It was only recently, in the last couple of years, that I learnt saving your money alone is just not enough. You need to invest as well to create wealth.

Here are a couple of things I have learnt from my personal finance journey so far:

  • Read books, watch videos, listen to podcasts, read personal accounts on Quora and Reddit.
  • Diversify not just your investments, but your knowledge sources as well. Get your knowledge on personal finance in various formats. Don’t just stick to one.
  • Latch on to the things that the different sources keep repeating. I find these repeated pearls of wisdom are of more value and reliability than the things that do not get repeated.
  • Use social media to gain knowledge. Follow “Personal Finance”, “Investing” topics on Twitter. Related tweets will pop up on your feed. You will find some of the best personal (and honest) anecdotes and tips this way.
  • If you are on Instagram, search for personal finance pages/experts and follow them. Same for Facebook and any other social media platform.
  • Start investing in equity as early as you can.
  • Be patient with your investments. When I started off investing, the value of my portfolio went down considerably, but then picked up in 3 years. My emotions varied from “Did I make the right choice? Maybe I should exit.” when I first started off to “Why didn’t I start this sooner?” after 3 years.
  • Live below your means. I am trying not to increase my standard of living as my income increases. Instead, I am trying to increase my savings/investments.
  • 20% – always keep this percentage in mind.
  • Do not trust every advice you see on the Internet (including this post!) – do your own research, and customize your own personal finance itinerary depending on your risk profile. Whatever step you take, make sure you take it as soon as you can after doing a proper research.

An Ode to Saving

Photo by maitree rimthong on Pexels

An excerpt from a book I am reading right now called “A Random Walk Down Wall Street“:

Two suggestions have been made to overcome people’s reluctance to save. The first is to overcome inertia and status quo bias by changing the framing of the choice. We know that if we ask employees actively to sign up for a 401(k) savings plan, many will decline to join. But if the problem is framed differently, so that one must actively “opt out” of the savings plan, participation rates will be much greater. Corporations that frame their 401(k) savings plans with an automatic enrollment feature (where a conscious decision must be made to fill out an “opt out” declaration) have far higher participation rates than do plans where employees must actively “opt in” to the plan.

There is this aversion to saving because it leaves us with less money to spend. Even if it’s a small amount like say $1, most would prefer to spend rather than save it. It is a never ending cycle that doesn’t change even with an increase in income. This explains why many of us are bad at saving. We are just not ready to take that first step, no matter how small it is. Psychological techniques like the one quoted above are then needed to motivate people to save.

I learnt “why” it was so essential to save by observing the people around me. I grew up in a home where budgeting never happened. We lived in the moment. That along with inflation left my parents next to nothing at the time of retirement. It kind of motivated me to learn more about personal finance, budgeting and investing.

I now take a note of all my credits and debits. I save some, I invest some. I also started investing in index funds, something my family never did before. I have no idea how successful I will be in this “new” personal finance route that has not been traditionally followed by my family, but you never know unless you try. I am reading a lot, not just books that compliment my current outlook, but the ones that thrash it as well, so I can see both sides of the story. I have never learnt so much about personal finance as I have now.

Getting back to the topic, why are people so averse to saving?

  • We are conditioned to believe that thinking about money is bad, that only greedy people think about money etc. We are then less inclined to learn about managing money.
  • We are not thinking about inflation. Our purchasing power is decreasing. It isn’t the same as it was 10 years ago. Not many understand the seriousness of this, leading to lack of motivation to save.
  • We think the interest we earn from our savings account is enough to get us through. But if you take inflation into consideration, you will realize that the money you invest in Fixed Deposits and Savings Accounts are giving us negative returns! We are actually losing money investing in these instruments. This “all is good” bubble that people (including me) thrive in makes them less motivated to save.
  • We do not wish to limit our spending. There is a constant internal struggle between wanting to buy it all and also wishing to save. More often that not, the latter wins.

These are just few points at the top of my mind but I am sure many financial experts would be able to cite more reasons.

It is always difficult to take that first step. It is always tough for me whenever I increase my savings. I struggle with that thought inside my head that reminds me my spending capital has reduced.

The trick is to get past that resistance. Once it becomes a way of life, you will realize it’s not so tough after all, and you will end up wishing that you had started sooner.

Edited to add: This wonderful advertisement from the 1960s that perfectly encapsulates the power of savings.

The Pleasure of Walking Tall

An Ode to Saying No to Dowry

Photo by Baljit Johal on Pexels

Yet another day in Kerala. Yet another dowry death.

Vismaya, a 23 year old, who died days after sharing her pics of abuse with a relative, has yet again prompted many to chant “A divorced daughter is better than a dead daughter.” Her parents were very much aware of the abuse she was going through, so was her brother and cousin, but unfortunately, not one of them could save her. There is no single person to blame here. Almost everyone is at fault, including the society.

I am a divorcee. Fortunately, my parents were super supportive, and gave my safety the utmost priority when I chose to leave my husband’s place after yet another episode of abuse. The day I left home was the day my parents came to know that I was facing physical and emotional trauma over many months. I did not want to worry them. Maybe Vismaya felt the same. The difference was, my parents did not tell me to compromise.

Mine was an arranged marriage. My parents and I were, are and always will be strictly against dowry. We always had made it clear when a proposal came by that no dowry would be given. My in-laws and husband said they had no demands, though traditionally their family practiced it.

On our wedding day, amidst all the flurry of activity, it felt odd when my husband quipped happily “(So and so) told me you are wearing a lot of jewelry; that I am a very lucky guy.” It was a hint of what was to come.

The emotional blackmail began on the first day of marriage. My ex-husband’s old relative, with a full authoritative tone, told me to put my jewelry in a locker at their chosen bank. When I naively told him that we usually put our jewelry in our own lockers, he was adamant that I keep it in a new one at the current location. This was odd to me, because I have never heard of such a thing happening in my family before. The women of the family always kept their jewelry in existing lockers. There was no question of transferring or shifting it to the husband’s place. Plus, it is so redundant – why open another locker when you already have one? There can only be one answer.

I consulted my mother, who panicked and told me not to do anything till they arrived. So I kept stalling their attempts to put my assets in their locker. My mother came to visit soon and took away the jewelry. This angered my ex-husband, and things (predictably) went downhill from then on. I remember asking him “Did you marry me for my money?

Physical abuse soon began. Not enough to get me hospitalized, but enough to give me bruises. “There are so many women getting hospitalized, that’s what real physical abuse is!” – he justified his actions to me. I forgave, but could never forget because he would keep repeating it. At the end, I ended the relationship and walked out. I realized my tears did not matter to him, nor my well being or happiness. I was married for just one year.

To all the unmarried women who are reading this, this is something you should note. You will hardly see anyone talk about this anywhere online – how dowry nowadays is rarely mentioned before marriage, camouflaged and hidden, all ready to make a move on its prey when the time is right. Many predators, cunning to the core, have realized that this right time to get what they are eyeing, is not before marriage but after it – when the woman is the most vulnerable, getting accustomed to a new place, confused and dazed. No one is explicitly going to use the word “dowry” but you will get to know from their actions.

Please remember, your current assets are yours alone. This needs to be strictly mentioned before marriage. You need to underline your deal breakers, so that there is no room for confusion. If after marriage, you decide to mutually hold future assets together, that is entirely up to you. But do not let anyone emotionally manipulate you into gaining access to your safety and security. Once you lose control of that, you lose control of your life.

I survived the worst phase of my life because I had solid support. Whenever I see a death or abuse case, it feels overwhelming. A lot of “if only” phrases come to mind.

  • If only, the family had supported her enough. Instead of telling her to compromise, they had told her to come home or “We are coming to pick you up” instead.
  • If only, the victim realized her life is not meant for suffering, to endure everything in silence. That staying married, even if toxic, is not the ultimate goal in life. Happiness is.
  • If only, the society made it easier for women to call it quits when her relationship with her partner becomes irreparable. Instead, mostly, we are told to compromise and adjust more.
  • If only, all men had the guts to strictly say no to dowry, go against tradition.
  • If only, a man’s parents did not put social status on such a high pedestal.

If only…

Many women, like Vismaya, would then still be alive.

An Ode to Humanity

Photo by fauxels on Pexels.com

I stumbled on a couple of YouTube videos recently. Posting 2 of them below.

Palestinians: Would you invite an Israeli Jew to Iftar meal?

Israelis: Would you invite a Palestinian to Shabbat or Passover meal?

Truth be told, every single “no” was painful to hear.

Circumstances force us to dislike even the humane, the innocents, people who have nothing to do with the terror attacks. It becomes difficult to separate a person from his religious identity.

In the videos, it doesn’t seem to matter if the invited person is of good character. An invite is extended based on religion alone, on a generalization that “If one person of a community is like this, then all of them might be similar.

I couldn’t help placing myself in such a situation – someone denying me an invite looking at my race, color, religion, caste and the actions taken by a group. It wouldn’t matter if I had raised my voice for the oppressed. At that moment, it only matters whether I am from “the other side”

It is not just restricted to Israel-Palestine, you can find similar cases world over.

The suspicions can’t be blamed either because time and again people have breached that trust. Suspicion is a natural form of self-defence. Better be safe than sorry. Yet mistrust can feel heavy when you are not personally to blame.

I pray for a world, where a person is judged by their own character, on humanity alone, and not from some unfair blanket generalization, even if such a hope seems far-fetched at the moment.

An Ode to Informed Opinions

Photo by Solen Feyissa on Pexels.com

You are supposed to have an opinion on everything nowadays.

If there is a hashtag trending on Twitter, where people are raging and showing their utter disappointment in something, you are considered indifferent or apathetic if you do not take an active part in the noise. You see posts akin to “Your silence speaks a lot” that curse you for being quiet.

You aren’t supposed to fall on a grey area. It should either be a concrete “Yes, I support this” or a “No, I do not support it” God forbid, you take a neutral stance. I have seen celebrities feeling burdened by this pressure to make a statement about any issue. At times, I have felt “Thank God, I am not a celebrity

What if it isn’t apathy or indifference? What if it’s plain fear – of upsetting your friends if you state your true, honest informed opinion?

Social media, unfortunately, isn’t always right. There’s a herd mentality at play most of the times. People go with the flow rather than doing proper research and making an informed opinion. There are people who protest, just for the sake of protesting. You ask them about the issue and they will have no clue about what’s going on.

It is sort of a ripple effect – when you see your friends taking part in it, you want to join in too, and then your friends see you doing it and they take part in it as well. A fear of missing out, or as the new gen would put it – FOMO. Everyone is too busy to do independent research though, so they trust their friends to have done it already.

You are also scared. You might be considered cold or distant if you do not support your friends in this hashtag trend. Even worse, you are not supposed to have an opinion that is different from theirs. “My way or the highway” is the motto. That confusion and fear stops a lot of people from really opening up. It can also make more people jump into the bandwagon, to add to the noise, impulsively without proper research.

There are times you give your 2 cents, supporting your friend’s opinion, because you trust them to be right. And later on, when you read up on the subject, you are utterly dismayed. You realize you shouldn’t have acted impulsively, and that there’s more to the issue than what meets the eye.

This is the bane of living online these days. You will be fired for having an opinion, you will be fired for having a different opinion, and you will also be fired if you do not have an opinion.

This shouldn’t stop us though, from making an informed opinion especially when it comes to sensitive issues. Your opinion will have an impact on your immediate circle – no matter how big or small that circle is. So why not do it right? Critical thinking has become the need of the hour. The facts are there for everyone to see. I do not mean the “facts” displayed on social media – which can be twisted to fit anyone’s agenda. A quick Google and YouTube search will display all the information you need. Go through multiple materials (from credible sources that are based on facts), read/hear from all sides, and you will definitely start seeing and filtering out the biases from your own knowledge base.

Here’s to more informed opinions, and may you never be stopped from making them.

P.S: I came across this old article “The Burden of an Informed Opinion” on LinkedIn. A very interesting (and much needed) take on learned opinions. Do give it a read to understand the necessity of critical thinking.

An Ode To Mother’s Day Posts Online

Photo by Andrew Neel on Pexels.com

I was one of those people who used to wonder why people published Mother’s Day posts online when their mother, who did not even have a social media presence, was right there next to them. Why not talk to them directly?

That was until I started writing such emotional, mushy posts myself. But with a small twist – I read them out to my mom as well.

My 65+ year old mother does not use social media because all the options and features intimidate her. I can see the cheer on her face though, when I tell her that I have posted something online. She tells me to read them out to her. She proceeds to ask how many people liked the post. “What did they say?” So I read out the multitude of comments. This questioning continues throughout the day. Satisfied with the likes and comments, she moves on to some other distraction. The post is now forgotten, but in that period of time, it gave her much interest and joy.

I have always felt most people express things better when they write it out. It is the reason why even mental health professionals encourage journal writing.

Express all you want online, but don’t forget to read it out to the person to whom it is dedicated to. Or at least make sure they have seen it.

Trust me, the smile you will get, will truly be worth all your scribbles!