Making money-related decisions can bring more confidence to your life. Here are three experts who tell you the importance of money management, mistakes you should avoid, and how to plan your money journey.
‘Pay attention to your money.’
Shinjini Kumar, country business manager, global consumer banking, Citi India. How important is money and money management? Money talks, but it can’t sing. So it is my responsibility to manage my money and build myself the ability to be a relevant and creative member of society. To take an example, all of us make daily decisions about spending our money. Do we think of the products we buy from a sustainability perspective? Are we being responsible for our actions and thinking about people affected by our choices in our investment decisions? All of these are essential questions for me when I think about money.
What is the one money mistake you made? I must say I should have started saving earlier. I never thought I would say this. I would live and work forever. What money advice would you give to women? Pay attention to your money. But don’t let it become your goal. It is a means and not an end. Also, some of the best investments you will make will be in people, including yourself. So, never miss that angle when weighing decisions.
Radhika Gupta, CEO, Edelweiss Asset Management Ltd How important is money and money management? Money is an essential means for both the smooth functioning of everyday life and fulfilling your dreams, aspirations, and goals in life. If not managed and planned well, it can lead to a severe crisis in the long term. Money management is crucial and should be done under the guidance of a trustworthy financial advisor. What is the one money mistake you made? I ignored asset allocation.
I started managing and investing money early in life. However, I was not aware of the difference right asset allocation could make to your portfolio. What money advice would you give to women? Women should take the initiative to understand money and investments early in their lives. Irrespective of whether you are employed or not, finances and investments should be taken under control. Understand different investment options and their suitability as per your life stage, needs, and goals. Consult a financial advisor to make the right investment decision.
RM Vishakha, Managing Director and CEO, India First Life Insurance. How important is money and money management? As a means to an end, money is significant, and hence, so is money management. Individual needs, desires, and aspirations drive the importance of money. If there are alternatives to fulfill this said need, you’ll choose the best ones if you have resources. Prioritization of needs and management of available money to match expenses and income becomes a critical skill. What is the one money mistake you made?
I had once invested in an under-construction house without adequate research and evaluation, which didn’t work for me, as anticipated. What money advice would you give to women? It is important to categorize and differentiate expenses based on goals and objectives. I urge women to prioritize between the critical and the good-to-have costs based on the situation.
Let not the seemingly urgent (short-term non-emergencies) needs take over the important ones. Buy insurance to cover unexpected contingencies to minimize emergency expenses that can derail plans. Provide for your retirement and non-income generating life in slightly illiquid assets (PPF, Insurance, NPS, to name a few) to minimize the scope of trading assets intended for the long term against short-term needs.
