I did an article about how people do not care about their money…so here is summarizing what that means for you. Unfortunately I can only write – how people read, understand and interpret is not in my hands. So will leave the interpreting to some of my very evolved readers.

My take on both the couples:


Both couples have one common mistake – not understanding money or how money works. There are many people who ask ‘can I retire with Rs. 50 lakhs,…2 crores..or people who ask ‘why do I need 1 Million US $ to retire. I am happy with these people. Hopefully they have applied their mind to money. These 2 couples have not.

The younger couple have time on their side, the older couple do not have.

Whatever you say, losing time in the investing process is like saying NO to a real expensive gift – the gift of compounding. So this couple should have learnt the basics of financial management.


By the time you are 32 and ready to receive your first kid, if you have not sorted out your Medical insurance, Term Life Insurance, etc. you will find life pretty hard. Do not look at the comments of some oldies who come to the blog. They had a job till they turned 60. Today’s youngsters will have to mentally prepare themselves for the following:

  • higher education expenses (more fees, more loan, longer repaying term)
  • Job Security is History
  • Many jobs – including gaps in between, and perhaps PAID part time work
  • Multiple marriages – with very very expensive divorces.

Now throw all this with an uncertain market, expensive taste of self and family, expensive hobbies, expensive children’s education, not great health..

In that context see the cost of delay. If you COULD have started investing at 23..and you delayed it to 32, well best of luck.

The older couple spending so much on their life style, big house, cars, ….have no clue from where they will pay for the wedding or for their retirement. They are nowhere near what they need for retirement.

Both the couples are so high strung that an emergency can throw them off balance – physically, financially and emotionally.

When you have bank fixed deposits and bank loans, it is clear that he knows nothing about finances. No asset allocation, no clue about cost of funds, just nothing. He is living far beyond his means…and does not like to be told so.

When you have a kid you know that you are going to pay for his/ her education, marriage etc….You have Rs. 1.3 crores at very low rates and you have a huge debt of Rs. 83 lakhs. Sir you have NOTHING in terms of savings – just Rs. 30L at age 50.

What happens if you were to lose your job today?

what happens if you were to fall ill today?

Who will pay for your daughter’s education and marriage?

You still think you ‘deserve’ that 1200 sft. house and Toyota Corolla as your cars?

Sorry I must be old fashioned, buy you are doomed.

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  1. excellent subra sir! hard hitting but fact of the life. reality is that people do not accept on the face of it, but react when things go wrong, alas! too late to change course of action

  2. I think basic financial responsibilities must be taught in school. It’s as much important (or even more) than Geography and Chemistry. It’s incredibly sad to see smart people who make basic mistakes simply because they were not aware.

  3. @Shan – You are right the seeds of financial practices should be sowed in school/childhood! Very few parents teach this to the kids as well.
    I know only one family where kids are given a choice whether to spend all their pocket money or invest some in shares and this is a monthly discussion. Its great for the kids!

    coming to the overall topic of negligence or not caring about money, i agree there is a lot of ignorance, but there are a lot of people who know where they are heading but dont do anything about it – i dont know why – maybe pressure, lifestyle, habit or just inertia!!

    Ignorant person can be educated but some one who knows and does nothing is very hard to save!

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