Financial Insecurities Are Forever, Make Your Money Work Them

As we grow in life, so do our insecurities. The need for materialistic things grows exponentially as we climb the ladder of our career. When we begin our jobs, the struggle is to make your salary last through the month or pay the electricity bill and home rent on time. Even such small goals seem like big insecurities at that point of time, as the urge to spend is big but earnings are relatively small. But as we grow, we begin to earn more. However, earning more money only makes our insecurities grow bigger.

The reason behind this is that we associate a certain kind of lifestyle with the pay check we earn or the job profile that we keep. That lifestyle comes at a hefty cost. So while it was okay to drive around a scooty when you started out at work, you must acquire a car after 10 or 12 years in service. You must have a decent sized home, no matter if it comes with a backbreaking EMI. You need to wear certain kind of clothes, and you can only afford to be seen eating at certain kind of restaurants. I remember my father saying to me once, that we spend a big chunk of our incomes on maintaining the status and position that comes with our employment and pay check. And wherever there is spending, financial insecurities can’t be far behind.

You must expand the horizon of your thinking in terms of money and that will give you a sense of security all the while working towards your financial freedom. - Amanjot Kaur

Independent Financial adviser Amanjot Kaur says, “Ever since childhood we are told to save. A very common practice followed in Indian households is to impart the importance of saving to children and tell them to not spend money unnecessarily so that you can preserve it for your dry days. However, the concept of investing that money in the right place never comes up in those conversations.

This is the reason why we face this problem that while the salary keeps increasing as we grow old, we do not plan enough for our life, since we haven’t grown with that kind of mindset. That is what needs to change. We must get involved in our investment decisions also, and not just leave them to others. We need to understand that while I earn, I must also start thinking about how and where I plan to invest, so that my money works to make me financially secure. You must expand the horizon of your thinking in terms of money and that will give you a sense of security all the while working towards your financial freedom. So if you decide to take a break from your job, say after fifteen years of your service, you will be able to do that with little to worry about.”

Uncertainty about the future, and the lack of sustained income also contributes to the feeling of instability. Liquidating all debts, aggressively inculcating a habit of saving and investing  regularly is the key to financial stability. - Smita Parikh

The essence here is that whether it is early on in your job, or in the prime of your career, or when you are close to your retirement, financial insecurities are forever going to be around you. You’ll always feel that you are spending more than you should and saving less that you can. This is where financial planning and investment comes in. With proper tools and knowledge we can make our money do the hard work, while we carry on with our lives. All it takes is a little discipline, some awareness and ample understanding as to know how much you must invest at what point in your career, so that you have a safety net under your finances at all times in life.

As Smita Parikh, Director at Litofest puts it, “Some of the richest people also live with fear and insecurity about their wealth. The fear of losing what they own or being cheated out of their wealth leads some of us to hoard and live in miserliness disproportionate to our wealth. Uncertainty about the future, and the lack of sustained income also contributes to the feeling of instability. Liquidating all debts, aggressively inculcating a habit of saving and investing  regularly is the key to financial stability."

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