Ok not exactly poor, but you are 30 years old, married to a 28 year old earning well but BROKE. Poor maybe too harsh – but if all you have to show for 6 years of working is say Rs. 10 lakhs in the bank, well you are almost there.
Let me tell you MY observations. Remember these are the observations of a 50 year old – born and brought up in a country with rations, shortages, tough job conditions, etc. To that extent there is likely to be bias – but liberalisation happened when we were 30…so we to did get the benefit of the 8% growth!!
Here are the reasons that I think what keeps you poor:
1. Not understanding finance: Absolutely no attempt was / has been made by your parents, our education system, etc. to teach you finance. So you do not know it. I wish we kept saying ‘financial learning’ so that people would have made an attempt to ‘LEARN’ instead of expecting people to ‘TEACH’ them financial planning.
2. You are financially scared: The only finance you learnt is from your parents – who were financially illiterate. This meant you thought money should be kept ONLY and ONLY in pillow covers, bank fixed deposits, government schemes. Excellent for the government of India. Terrible for you. You are losing money to inflation.
3. You cannot Postpone consumption: You see a thing, and you want it. Period. It hardly matters whether it is a Rs. 3000 Tee shirt or a Rs. 1,50,000 KTM from Bajaj Auto. Add to this peer pressure, parental pressure, and ease of borrowing – ensures a continuous borrowing to spend syndrome. I am happy to be a shareholder of Hdfc bank. They thrive on you.
4. You and your spouse joint understanding of finance means fighting, because it is like 6 blind men and an elephant. You, your wife, your parents and her parents. So your personal finances are like Humpty Dumpty. Honestly, it will require all the kings horses and kings men to set it right, if at all.
5. You ‘invest’ in things you do not understand: Then come to me and ask ‘Sir I have been INVESTING in this ULIP for the past 7 years, why is the sum accumulated only Rs. 60,300 – when my contribution is Rs. 77,000? Well, well, dear me, you should have asked me BEFORE you invested, right? Just chill. By the way you invested because your wife’s classmate had to meet a life insurance target, right? why call it an investment?
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