_*Risk, Cash Inflow & Outflow*_

_*Risk*_ is best managed when it syncs completely with my _cash inflow & outflow needs_

Liquidity, Risk & Returns - Is this Possible?

An Investment Product with Reasonable Liquidity + Low / Medium Risk + Maximum Returns ---- Is this Possible?

_*Asset Allocation & Needs*_

 _Asset Allocation_  - text book definition.....   an investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance, and investment horizon.

Wow...that looks seriously tough for a common man to understand

In simpler terms.... 

*_Asset Allocation_ is nothing but, _investing money in a common sensical way_*

That's just allocating money into the 4 avenues.....

Equities

Fixed Income

Real Estate

Gold / Commodities etc.

_*The ratio of allocation among these 4 asset classes is based on ONE'S NEED (short, medium & long term)*_

_RETURNS_ are immaterial here, but the _RISK_ is quite material.

_*DOES IT SUIT MY NEEDS IN THE SHORT & LONG TERM OR NOT?*_

_Nothing else matters_ 😀

_*Insurance Purchase, Taxation & Need*_

This year's Budget proposals on the various  _exemptions & dedictions_ getting phased out sooner than later, I've only seen the below headlines in every article / clipping / video, that I've come across

*It's NEGATIVE for Health Insurance sector*

*It's NEGATIVE for Life Insurance sector*

It's NEGATIVE

It's NEGATIVE

🤦🏼‍♂

_*The primary purpose of  adding / buying a LIFE or a HEALTH Insurance plan to one's Money Life is not to claim a tax exemption or a tax deduction*_

It's supposed to be for *Risk Mitigation* in our lives.

All these decades, the selling point for the majority of agents / brokers / distributors in the Insurance Industry was on claiming a *tax benefit*; & the *Money Illiterate population* has been lapping up their talk for decades 🤦🏼‍♂🤦🏼‍♂🤦🏼‍♂

*INSURANCE* is for covering our _financial, health or life risks_

*INSURANCE* is _NOT_ for claiming tax benefits

_Whether Tax Exemptions / Deductions are available or not - One has to be Insured for Health, Life & Any other Needed Insurance_

_*INSURANCE IS A LIFE NEED, NOT A TAX NEED*_

_*Water, Work Time & Money*_

Approx 72% of our body consists of *Water*

Approx 72% of our waking time is spent on *Earning Money* (directly or indirectly).

The majority neither focus on the *impact of water* on the human body, nor do they focus on the impact of *earning More (up-skilling)*

🤷🏼‍♂

_*Line Items & Portfolio Tracking*_

In _tough times_, we focus specifically on the *possible bad* line items in a portfolio.....(a product / asset / scheme's performance)

In _good times_, we focus specifically all the *possible good* line times in the portfolio.....(a product / asset / scheme's performance)

In bad times, we shouldn't calculate the absolute amount of INR lost 

In good times, we shouldn't calculate the absolute amount of INR gained

_Both are notional figures.....until we've actually realised the loss or gain, by selling_

Yes.....we need to keep a track & keep reviewing on the specifics.

But.....the golden rule is

In _good or bad times_, we should focus only on the *Overall Portfolio Returns Vs the Asset Allocation we've chosen*

_We cant keep changing the way of evaluating a portfolio performance based on systemic & unsystemic variables which keep cropping up_

_*Relationships, Money & Health_*

3 key variables in one's life are so well connected with each other that, one needs all the 3 to lead a happiness filled life.

One's Life *time* keeps them bonded.

Any of these variables are not well oiled & managed, life is a struggle 🤷🏼‍♂

The problem is, we give a *disproportionate time* to one variable Vs the other.

So, the misery 😞

How much of one's *life time* that needs to be spent on _building & sustaining_ Relationships, Health & Money.....is one's choice, but the choice comes with conseqences which have to be borne, in the future 🙂

Monopoly Vs Reality

👆🏼

I did write a post on the game of Monopoly and its wonderful benefits for learning the lessons on Money & Investing, especially for the kids.

The above one is the flip side of this game - 

_I tried to work the cost of acquiring the card / place Vs the Rent recieved for owning that particular site_

It turns out that the results are quite dubious when compared to the reality of life 🙂

_We rarely / never get a High Rental Yield for a property, when it is purchased for a High Cost & vice versa_

Yes, sometimes it does work out that way… but most times, it's the inverse.

*Monopoly - high cost of acquisition leads to high rental yields*

*Reality of life - it's mostly the opposite which is true*

_*Paying Others, Paying Oneself & Savings for the future*_

One more attempt at a little poetry 🙂

_I Pay_ the Credit Card outstanding

_I Pay_ the Personal Loan EMI

_I Pay_ the Car Loan EMI

_*But, Did I Pay Myself, first*_

_I Pay_ the MilkMan

_I Pay_ the Maid

_I Pay_ the Cook / Driver

_*But, Did I Pay Myself, first*_

_I Pay_ to the School / College

_I Pay_ to the Extra Curricular

_I Pay_ to the Nanny / Creche

_*But, Did I Pay Myself, first*_

_I Pay_ to Entertainment

_I Pay_ to Malls

_I Pay_ to Restaurants

_*But, Did I Pay Myself, first*_

_I Pay_ for the latest Gadget

_I Pay_ for the latest Tech

_I Pay_ for the Comforts

_*But, Did I Pay Myself, first*_

_I Pay_ my Taxes

_I Pay_ my Charity

_I Pay_ Everyone Else

_*But, Did I Pay Myself, first*_

_*Let me Pay Myself First, before I Pay Everyone Else, because; None of the 'Everyone Else' is going to Pay for Me, in the Future*_

_*BSE Sensex Index Data, Daily move & Do we need to bother*_

*Investing Continuously + Staying Invested for Long = Only way to beat Inflation*

*Checking for the Daily Market Movements is futile and a waste of an investor's time*

Markets get spooked by a NEWS

Markest go up with a NEWS

NEWS need not be news...rumour is just fine