A Financial Wellness Workshop conducted by
Maher Dhamodiwala from Financial Artists ( Financial Planner )
Freyaz Shroff from KurNiv Success Solutions ( Life Coach )
on 23rd May 2015 at Naidu Hall, CCI
DSP Black Rock released a survey that found that one in four women don’t take part in their financial decision-making – at all. And because 90 percent of women will be responsible for their finances at some point in their lives (due to events like divorce or outliving a spouse), financial planning should be a priority.
Women being more emotional and nurturing by instinct tend to be risk averse which keeps them away from taking bold financial decisions. The workshop discussed the shortcomings of keeping away from mutual funds and equity and what are the financial risks one has to bear for refusing to come out of the shell.
The role of inflation is generally not considered in financial planning, however the truth is, it is one of the primary deciding factors in your investment.
Although women feel confused or lost with discussions on stock market, the truth is they are perfect for being a sound investor. The reason being women investors bring to the table a stable and long- term approach towards investing. They tend to take a holistic approach and put things like children’s education ahead of their own goals. Lastly, once they understand the nuances of long-term investing, they are less bothered by short-term events. They can surprise themselves by the stable dimension they can lend to their family’s financial plan as they always think long term.
The workshop emphasized on the benefits of delayed gratification by showing some simple yet powerful examples. One of the winning examples was the principle of Jelly. If one wants to savor the taste of Jelly, one should have the discipline to allow it to solidify, the same goes for a sound investment plan.
However our conditioning makes us believe that a constant state of euphoria co-exists with investments. However, the truth is that, the only way to achieve your financial goals is by self control and discipline. In a euphoric state, you may either over achieve or under achieve but a balanced, long term plan makes you stable and stronger by each passing year.
The most interesting part of the workshop was the clarity with which the fundamentals of mind and money were explained. Some of the powerful fundamentals discussed were:
- Power of Compounding.
It helps your savings grow even faster. That’s because you’re earning interest on the money you’re saving, plus you’re earning interest on the interest. Money’s ability to compound is of one its’ most intriguing and beneficial features.
For eg . If you can visualize a huge orchard of mango tree, filled with fruits and flowers which all started from one mango seed. This is exactly the principle on which power of compounding work.
- Systematic Investment Plan (SIP)
No river flow can ever be turned into electricity until it is tunneled. No man has ever achieved any greatness without being disciplined.
SIP is a smart financial planning tool that helps you to create wealth by investing small sums of money every month, over a period of time and the best part is you need not understand the share market or be bothered by global financial trends or politics. All you need is discipline.
For eg : Maher spoke about how he has a perfect plan for his daughter Mahira by starting a SIP the very month she was born. This will enable Maher to provide her with quality education and a extravagant marriage as it would already be around 20 yrs of systematically investing for future by then.
- Asset Allocation
A good financial portfolio is defined by “Balance”. Generally speaking, stocks provide more long-term growth, but they can be volatile. Bonds, on the other hand, tend to be more stable but offer relatively little growth. Cash, FD’s and gold offer little risk but also little return.
There is a famous saying, “Don’t put all the eggs in one basket”..which means, if the eggs are at a risk due to a natural calamity or a predator, a few would always remain safe if they were at a different location. Asset allocation is just like hiding the eggs in different location from time to time after understanding the risks in the environment.
It is balancing between debts and equity. When either markets (equity or debt) are cheap we tend to increase that asset’s allocation. Reviewing the portfolio every year and adjusting it as per your goals and market trends is what makes it dynamic and sustainable over a period of time.
As global trends in every aspect of life and living are changing across the world, we at Financial Artist and KurNiv Success Solutions urge women to empower themselves financially and believe in themselves that they are perfectly capable of taking accurate sound long term financial decisions.