Subra Sir,
Goal setting is very important aspect of any effort financial planning may being one. But I always have one query. Imagine if all of my goals are somewhere about 20 years down the time, do I still have to allot different financial slots for different goals. I mean if I want to invest thinking about my daughter’s marriage (20 years away) and my son’s education (20 years away), Do i still require to allot separately to different instruments of investment. I will want money to increase in the best possible way for both goals isn’t it? then why two different slots for the same capital appreciation required?
Suppose with my research I construct a portfolio for capital appreciation which I believe is good then I shall apply the same for both goals, I will not want one slot of my money to grow less than the other slot isn’t it?
Near the end of appreciation period I need to withdraw and then I can make switches, withdrawals slowly or shift some amount to less riskier instruments. But till then cant all the money grow unitedly instead of in different slots

What am I missing here?
Please enlighten me

Not all people are so clear or perhaps not so lucky. Most people have short term goals (buying a car, upgrading a house, going on a vacation, etc) and long term goals like retirement.

Also many people HAVE TO BE FORCED to save. For you if saving and investing come naturally, you do not need separate packets to keep the money. When kids were born to Mr. Kumaramangalam Birla he did not start 2 sips! That is because he has the wealth mindset already. So if you are clear that you will invest (say in an index fund), have term insurance, have one unused credit card and one fully used credit card….only thing you need to do is to say NO to new products.

Keep putting all your excess money into one liquid fund (or even MIP -short term), long term money into the equity fund. When you know your date of needing the money, withdraw from MIP or liquid funds. Simple, aint it?

What happens to those people who have enough money to meet all their goals? what motivates such people to save and invest?

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    I’m someone who’s sane most of the time. But then I read these articles and think, even if I religiously save 50% of my take home, do my SIPs for 30 years, there’s no way I’ll ever end up being rich. Cos the definition of rich keeps changing day by day. Its like the dialogue between Alice and the Red Queen – “Well, in our country,” said Alice, still panting a little, “you’d generally get to somewhere else — if you run very fast for a long time, as we’ve been doing.” “A slow sort of country!” said the Queen. “Now, here, you see, it takes all the running you can do, to keep in the same place. If you want to go somewhere else, you must run at least twice as fast as that!” . So, at times I wonder what the point of saving is…

  2. Subra sir, thanks for the answer. That was crisp and clear. You have lessened my confusion now. Investing was never my cup of tea till 4 yrs back i.e untill I was studying. It was people like you, manish of jagoinvestor, and many more people who opened my eyes. I understood from you all that starting is more necessary than finding the perfect instrument for investment. It is necessary to make mistakes to succeed like no one can learn cycling without falling. You all taught me to protect my money from the charming and well dressed thieves of this era. I have learnt from you to say NO, the most word in finance. I learnt from you all that learning is a life long process. Today I try to stay hungry and stay foolish (the great Steve jobs.) I know today that there is a lot to know. Discipline is very necessary in any field be it finance or cardiac surgery (my field ) . Thanks again for clarifying my doubts.

  3. Hi Kishan

    You Hit The Nail .Absolutely Perfect.Subra is doing a great job and his teachings made a diffrence in Many people lives.Financial Mistakes are often Irreversible and Costly…Injurious to Heart of our Financial Health .And as you know that unlike in Body ,where we can still have some Hope with Stents and Plasty ,in Finance we dont have that option .For we loose Most Important Factor TIME which is so Important for Compounding. Skewed Asset allocation in Real Estate or only In Debt with Leaverage for 15 or 20 years in case of Real Estate takes away not only TIME but also Moolaha which could have been used for creating WEALTH.So Readers Likes us are greatful to Subra that we didnt take That First wrong step and instead are focussed to create wealth from our Investable surplus with a Formula Income- Investment=Expense.Well said kishan and THANK YOU SUBRA !

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