Category: Blogs

What is the most common ritual most Indian do on the eve of every new year and I am not talking about doing booze, dance, party and in many cases going out on a trip with friends and family. Any guess? Most people tend to take a pledge/resolution which they wanted to do for a long time e.g. “Kal se I will quit smoking”, “I will quit boozing” or the most common “kal se Gym shuru 😊”. But we know how 90% of these spontaneous resolution ends, isn’t it? Reason – There is no Kal (Tomorrow). We are master of postponement or delay. By the time you realize cost of this delay, generally either it is too late or cost of recovery is very high.

This delay syndrome is so common in one other field – Investment. Almost every young adult-bachelor or married you talk to, are so concerned about future and wants to secure it, but usually end up doing nothing. We are champions of procrastination when it comes to money. “Will start saving after marriage,” “After I buy a house,” “When I get a promotion”—the reasons are endless. The results? Financial stress, poor investment decisions under pressure, and an over-reliance on loans.

We don’t realize but the cost of this delayed decision making is pretty high. Just to give an example: 

Two friends, Rahul and Arjun, both earn ₹75,000 a month. Rahul starts saving ₹5,000 every month at age 25. Arjun delays and starts saving the same amount, but at 35. Both plans to retire at 60.

Assuming a modest 12% annual return (easily achievable via mutual fund SIPs), here’s the shocker:

• Rahul, by investing ₹21 lakh over 35 years, ends up with approx. ₹2.75 crore.
• Arjun, investing ₹15 lakh over 25 years, ends up with approx. ₹76 lakh.

Just a 10-year delay has cost Arjun ₹2 crore!

This isn’t fiction. It’s math. It’s the real cost of delay.

Time – Your best ally and enemy as well 

Sun rays during December/ January in Delhi feels so good, gives feeling of warmth, cozy and a sense of energy, but same sun rays during May/June in Delhi burs you, make you sweaty, uncomfortable and drain your energy. Sun is same, what changes is – “Time”.

Similarly, in investment its time which decides whether it is your friend or foe. Even a small investment if started early, allows money to stay in market for long and give handsome return. On the other hand, if delayed even big investment yield petty returns, because there was not enough time for your money to work. Time is the strategic asset that money can’t buy back. Just as a marathoner benefit from a strong start, investors who begin their financial journey early harness time as a valuable asset. Starting early provides the luxury of weathering market fluctuations, adjusting strategies, and benefiting from the compounding snowball effect that significantly contributes to long-term financial gains

Compounding: It’s your best friend—if it’s given time.

When people say ‘Put your money to work, so that it earns enough so that you don’t have to work, otherwise you will have to work to earn money. It actually refers to compounding. Compounding impacts, when given enough time, is so profound that even a person like Einstein once called it eighth wonder of the world. When you look at the concept of compounding, you start understanding the Why? In conjunction with time, compounding grows investment rapidly and turns your dreams into reality. Let us look at an example:  

An investment of ₹5,000/month at the age of 25, become ₹2.96 crore by 60 (assuming 12% CAGR). On the other hand, same investment with simple interest will become ₹0.24 crore only. A huge difference of ₹2.72 crore.  

What other things we lose by delaying:

• Flexibility: Early starters can take more risks and ride out market volatility.
• Peace of mind: Every investment is market driven, if you invest late, you buy at higher price, make your returns lower and when market corrections happen, you scramble and panicked, putting lot of stress on yourselves.
• Liquidity: In absence of a planned investment, in case of emergencies, people hastily take high-interest borrowings, losing their liquidity and may end up in a deep debt trap.
• Tax advantage: Timely investment ensures, you take advantages of tax saving instruments/schemes announced by Govt. and legitimately save tax and further grow your money. 
• Extra money to achieve same goal: You need to save much more later to reach the same amount.
• Money value due to inflation: Inflation eats your money value; it reduces your purchase capacity. Investment ensures that you get return on your money, thereby keeping your purchase capacity intact or even increases.

It’s not just about numbers. Delaying financial planning increases anxiety. You constantly play catch-up. You feel stuck. Money becomes a source of guilt. Planning ahead gives you clarity, freedom, and better sleep.

Why financial markets are good and safe options for investment:

Ther are some common concerns cropped up in people mind whenever they think about investment. Risk, returns, knowledge, liquidity, compliance and ease of investment. Very few options satisfied all these concerns, e.g. real state though have high returns but liquidity (finding buyers for property) is a big challenge, similarly you may need big amount to start an investment in it.

Considering all factors, investing in financial market through mutual funds or equity investments are ideal for most people, expert people manage mutual funds, so you don’t require to have extensive knowledge of this market, you can start with a low investment of Rs.500/month. You can exit any time.

India’s mutual fund AUM (Asset under management) hit a record ₹72.2 lakh crore in May 2025, growing 22.5% YoY. Around 33% of SIP assets now remain invested for over five years—up from 12% in 2020. This shows strong investor confidence in this segment. Over last 10 years, mutual funds have given an average 14-20% returns. However, since they are market products and prone to market conditions, there will be fluctuation, but if you stay invested for long duration, you will be able to whether the storm and earn good return. Here again ‘Time’ and discipline is the essence

Some myths about investing

• You need to have good money to start investment: There is no minimum thrash hold amount to start investment. You can start as low as Rs. 50/day. Most important thing is learning and executing habit of saving and investment. Don’t put your money idle, As Sourav Ganguly said” Ground ke bahar baith kar koi player nahi banta” similarly, you need to come on the investment ground, start investing than only you become big in wealth.
• You need to be a financial market expert to start investment: No need to be an expert, use available expertise for investment. Mutual funds, run by expert, invest money in good products, so let them be worried about market fluctuations, volatility and returns. Invest in equities and mutual funds for long term growth.
• This is not the right time:  There is no right to start investment. Everyday counts. So, start today, more time you give for investment, more chances you reap the benefits.   

How to catch up if you missed the bus earlier:

Its never too late in investment. If you have lost time in deciding the investment, now it’s the time to mend that mistake. Initiate following steps:

1. Record your financials: List down your incomes, savings, insurance and expenses.
2. Set the goals: Figure out how much money you want for your liabilities or any other wish – Family vacation, house purchase, children education or retirement etc.
3. Start investing regularly: Use SIP to invest, take advantage of market opportunities
4. Buket your horizon: 0–3 years: Liquidity plus safety, 3–7 years: Hybrids or balanced funds, 7+ years: Equity or ELSS
5. Escalate investment: Increase your investment every year by 10-15%
6. Yearly review: Life changes—salary, family, goals. Review investment every 12 months and diversify/change

Delay is costly. The math is unkind to latecomers—but you can still turn it around with discipline, real-world data–and a plan. If you’re starting late, don’t hide in debt. Audit, automate, and embrace long-term equity. It’s not too late to build wealth—but the clock isn’t on your side.

‘Ab Zamana badal gaya hai”, This phrase must have been heard n number of times, especially by my generation (people who are in their late 40’s) from their elders. Ours is the generation who has seen the unprecedented pace of change- from B/W TV to OTT, landline to mobile, manual working to AI.

It has not only deeply impacted our thinking, workings, habits, lifestyle but also, even our belief, family traditions and social values. People mindset is changing rapidly. Things considered taboo 10-15 years are new normal. One of such topics which is pretty hot and close to my heart is ‘Retirement planning’. Let’s look how conversations around this important topic have changed.  

1. ‘Retirement matlab Sanyas:  When we were growing up, have seen our grand parents slogged hard to raise their children. Once retired, usually they had two motives- first construct a house and playing with grand kids. If, some money and time still left, do a char dham yatra.Retirement was a time for Satsang and lobby the God for Swarg. 

Now days, retirement mean – exotic vacations, adventure sports, different hobbies and natural farming to name a few. It means fulfilling your dreams, hobbies. No more thinking about swarg/narak, but enjoying the life. Time to turn dreams into reality. So, rather than useless, retirement is gradually becoming most important phase of life. Perspective is changing.

2. Log Kya kahenge: Parents living separately from children after retirement! forget about doing, even thinking about it was considered a sin in India. What will people say? was the common refrain. As an ideal child, you were supposed to take care of your parents’ post-retirement.

Now, even parents are not willing to live with their children after their retirement. No one wants to bind himself and become a burden on their children.  Everyone wants his/her own space and a life of its own. Nobody cares what people say, what matter is what I want.  

3. Bhagwan pe bharosa rakho:  Earlier If you retired and diagnosed with a serious illness e.g. cancer, heart problem, you were Bhagwan bharose, public medical facilities were poor, private treatment was expensive and people didn’t take health insurance. Unless you had good family money, people solace you with Bhagwan pe bharosa rakho, sab theek ho jaayega.  More hope than belief. In any case, retired, you were not considered a priority to spend huge money on your treatment.  

Now medical insurance with good hospital care is available and people don’t want to die just because they are retired. They want to live to the fullest. So, they take care of their health requirement in old ages through medical insurance.

2. Ek bangla bane nyara: Just like this famous song of K.L. Sehgal, every parent wanted to build a house post retirement and live in it with their children and grand-children. House building was an epic effort, with both hard-earned PF money and emotions attached to it. In most cases, children couldn’t explore better opportunities outside their home states because their parents didn’t allow them to go. Who will take care of property if anything happens to them.

Now career is top most priority, no child sacrifice career in order to stay with parent So no more building houses in the hope that kids will stay with you after retirement.

5. Allah ke naam pe de de: Earlier, in most cases, parent put all their savings in house construction or children’s marriages. So in their old ages despite having fixed properties, they were financially dependent on their children. We have seen so many cases, where people with good income during their prime, lived miserably after retirement because they had no fixed source of income, depend squarely on their children, who didn’t take good care of them.

Now things are changing, people don’t want to be financially burden on their kids, wants to have a dignified post-retirement life. They plan/invest to ensure having enough of their own money than can be spend as per their wishes after retirement.

I am sure, a lot of people will be able to relate with this observation. Many of us already doing some sort of retirement planning. There are certain things which needs to be keep in back of your mind while you are doing retirement planning.

• Bhai, aur bhi ghum hai zamane me: This is the cliché, If, you ask a young person about retirement planning. Girl friend, boy- friend, vacations, latest gazette, Netflix etc. etc. are much ahead on their wish list. My advice, put it in top 3 priority. Due to tech advancement, working life span is getting shorter every day. You never know when your job becomes redundant. So, make the hay when its sunshine, start planning ASAP. Early you start better it will be.

• Apple har saal price drop deta hai, mutual fund nahi: Don’t invest too much in assets which depreciate every year, like gadgets, cars etc. Instead invest in financial market – buy equities, invest through mutual funds. These are the things which gets appreciated, will build a corpus for you for your retirement to ensure you buy your dream choicest gadgets even after retiring.
• Rome didn’t build in one year: Keep investing in your retirement planning. Longer the investment horizon, more time it will give your money to work. This will ensure even after your retirement, your money will not and keep earning for you.

• Mehangai dayan khaye jaat hai: This is the demon which has capacity to quickly reduce your money value in short span of time. A Rs. 30/kg potato with 6% inflation will cost you Rs. 130/kg in 25 yrs. So, while doing retirement planning, calculate how much money you will need in your retirement considering the average running rate of inflation.

• Jaan hain to jahan hai: Make sure you take a comprehensive health insurance for yourself and your spouse (at least) covering all health care expenses post your retirement. Any sudden health treatment shouldn’t make a deep hole in your picket, made all your retirement plans haywire, making life a struggle rather than fun.
• Maal hai to taal hai:  when you have money in your pocket, everybody listens to you, that’s hard-core reality of life. Make sure you invest in retirement planning in such a way to get enough money post-retirement to make you financial independent. Believe me, money talks. If you are not financially dependent, you can have peace of mind and you will have wonderful second innings.

• Use financial planner: Don’t believe, you know the best about in investment and planning. Take help of a experienced financial planner to plan your retirement. They will help building a plan in such a way which will take care of your expenses, ensure a fixed stable income, health care expenses, tax rebates, contingency fund, preserve your capital and simultaneously grow your investment in your retirement, so that not only you have peace of mind but will leave a legacy for your families.   

• Don’t out all eggs in one basket: It’s imperative to not put all money in one instrument. Diversify your investment, spread the risk. Diversification increased your ability to take risk. It is a very good tactic to meet your goals with different time lines.

• Don’t take too much WhatsApp gyan:  Last but not the least, stop taking WhatsApp Gyan. Stay patient, don’t react every day. If, you go by these gyanis, your will be tense everyday because of FOMO (fear of missing out). Stay invested, back your judgement. Look at the data, take a long-term view of things, do a periodic review and then take informed decision.   

Pace of change is frightening. If we don’t accept, adopt and change ourselves, change will change us. Some things never change, like a good old song- “Mein jindgi ka saath nibhata chal gaya, retirement planning ke saath, har fikr to dhooene me udata chala gaya”

Let me ask you a question. On which subject you will find most experts in India? Any guess? Studies, movies, money, politics or cars. Answer is none of these. Then what is it? Its ‘CRICKET’. Every Tom, dick and Harry of our country is expert on cricket. Your house maid, driver, colony’s watchman, shopkeeper or even a 10 yr. child. Everyone is an expert. Who should play, who should bat at what position, who is the best batsman or bowler, how can we beat Australia. Everybody has an opinion, everybody is an expert.

But have you ever though- how many of such experts have actually played the game? Not even .001 % of India’s population. So how come they become expert? General accepted principal says unless you have practiced something personally, you can’t master it and yet they are expert, how? Short answer is ‘By simply observing /watching the game, developing their understanding over time by listening to the commentaries of experts who have played the game or reading the newspaper article or discussion on TV, you tube etc.

So, clearly you need not be a born player to participate in a game, you can develop the competencies overtime. This is so similar to the fact that you need not to be an expert financial planner to start investing in financial market.

you don’t need a degree or a certification to think like a financial planner. You just need a shift in perspective. Let’s look, how by changing our thinking process a bit, we can conquer the conundrum of financial planning. 

• Figure out how many are enough?

What is the first question asked when a team decides to bat? How many runs are enough to win this match? Nobody asks, how will you get it or who will made how many runs? Once the target is set then team decide the strategy to achieve it. Who will open, who will be pinch hitter etc. Similarly, first figure out how much money you need. Set the goals, then it became easier to figure out how you will save money for investment, where will you invest etc.

• First know where is leakage before fixing?

During a workshop I once attended, the speaker asked, “Raise your hand if you know exactly how much you spent last month on non-essential purchases.” Only three hands went up—in a room of 60. Its hard fact, most of us don’t track our expenses. Unless, we know where we are spending, how will we manage our expenses. Planner don’t just spend, they budget, spend and track to avoid over spending to ensure that cash flow is in control.

• Defend then attack:

What makes a Tendulkar, Lara, Ponting or a Kallis all-time great batman? Along with great attack they had an equal solid defence. It allowed them to correctly played good balls with ease, preserved their wicket and had long stay at wicket. End result – big scores. Become a great batsman in game of investment. Insurance is that solid defensive technique, a safety net that ensures stability, risk mitigation, and long-term wealth protection. Without it, a single catastrophic event (medical emergency, accident, property loss) can wipe out years of savings. So, take enough insurance cover to cover any health and life emergencies.

• Weather the storm:

Which is Gavaskar’s favourite one day innings? 175 by Kapil dev against Zimbabwe in 1983 world cup. Why? Because when he went out to bat, score was 17/5, conditions were really tough for batting, ball was new, swinging, forget scoring, saving your wicket was tough, but he counted on his experience, patiently weathered that storm and once condition got better- ball getting older, less swing, he did counter assault, India ended up with score of 266/8 and later won the match.

Thinking like a planner means, developing the habit of weathering storm, patiently wait out tough time, be a market crash, ill ness or a job loss. It’s not paranoia. It’s preparation. Build a plan to safely navigate tough time without impacting your ability to stand up again. E.g. build a contingency fund to take care of your expenses which can cover your 5-6 months of recurring expenses.  

• Cut the chase

How good teams chase a big score in a match. They don’t go hammer and tong from the first ball. They plan, they break the chase in phases, let say over 1-10, 11-25, 26-40 and 41-50 and plan strategy for each of these phase. E.g. attack, take advantage of field restriction of power play, accumulate many runs, then milk bowling in next phase and final assault in last ten over.

Plan like this in chase of your investment goal. Don’t put all eggs in one basket. Bracket your investment to maximize returns with different risk levels.

Goal Horizon	Examples	Investment Approach
Short-term (1–3 yrs)	Travel, gadgets, buffer fund	Liquid funds, RDs, FDs
Medium-term (3–7 yrs)	Car, kids’ school	Balanced or hybrid funds, RDs
Long-term (10+ yrs)	Retirement, children’s education, marriage	Equity funds, NPS, PPF, EPF

This method aligns expectations with realistic returns—no more investing for retirement in a 1-year FD.

• How I can be next great?

What is common in all great player, be a batsman or a bowler or even a fielder? They don’t sit on their laurels. They continue to learn and adopt. They learn from their success and failures. They even learn from their opponents. This hunger of learning, ensures they continue to improve their game and become better and better.

Become similar player. Don’t believe you know everything—learn and adapt. Don’t react to Twitter tips or WhatsApp forwards; read, explore, compare, question and analyze.

How to do this – Read the basics of investment – SIP, compounding, mutual funds, insurance, diversification and inflation etc. The more you understand these factors which impact your investments, the more empowered your choices become.

• Set- review – Reset

Generally, teams have a set batting and bowling order to ensures, consistency and stability, since everyone know their role. Fast bowlers use the new ball, batsman with good technique open the innings, to defend and save wicket when ball is moving around. But some time we see, a spinner starts the bowling with new ball, why? Because the pitch is rough and new ball being harder gets more bounce and spin and get you a wicket.

It means routines gives you discipline and good result. But it’s important to review and make amends to take advantage of circumstances.

Build discipline through routine in your investment, start SIP, auto-debits for saving, monthly check-ins, it’s all about making smart decisions automatic. But do periodic reviews to see how your investments are doing. Make changes, Adjust as life changes. Promotion? Bonus? Job switch? Each one’s a chance to realign your compass.

Conclusion:

You don’t need to be a planner on paper. You just need to start thinking like one. Have a reason for every rupee. Build resilience before chasing returns. Learn a little, track a little, and plan a little—consistently.

The mindset of a financial planner isn’t about spreadsheets. It’s about seeing your life as a series of dreams—and crafting a money map to get there.