Every year, on 2nd October, we celebrate Gandhi Jayanti, commemorating the birthday of the iconic freedom fighter Mohandas Karamchand Gandhi, better known as Mahatma Gandhi. His teachings, ideas, and philosophies continue to inspire people in India and around the world.
Mahatma Gandhi’s life is filled with examples of his strong character, strength, and determination to achieve equality and independence. These principles and qualities can be applied to several aspects of our lives, including finances. In this article, we discuss how you can inculcate them into your monetary management to further your financial and investment goals.
The importance of financial planning
Financial planning is essential, especially in today’s world. Once you have a clear economic goal in mind, it is easier to work towards it. Financial planning also ensures you build sufficient savings, giving you funds to fall back on in emergencies, such as illness or accidents. Mahatma Gandhi, too, was aware of the necessity of making smart investments that could help spur the growth of the Indian economy.
Financial lessons to learn from Mahatma Gandhi
This Gandhi Jayanti, let us look at some popular teachings and principles from Gandhi that you can apply to acheive your personal financial goals:
1. Planning for the future
Gandhi famously said, “The future depends on what we do in the present.” This applies heavily to your finances as well. When it comes to saving or investing income, people tend to put it off for later. Delaying investments can harm your portfolio. Procrastinating your investments could also mean you do not fully receive the benefits of your efforts. The best returns from investments are received after long-term investing.
Further, it is also important to have insurance. There are many types of insurance to consider to protect your assets in case of adversities. These include health insurance, home insurance, life insurance, and pension plans, among others. Planning your finances while accounting for possible future problems is also crucial to ensuring you are protected and prosperous.
2. Invest in reputable assets
Mahatma Gandhi was a huge advocate of seeking truth and living in truth. This especially applies to your investment portfolio. Take the time to research companies and assets you wish to invest in. Analyse their growth, their source of profits, and their business goals. Then, invest in those that follow ethical business practices. Doing this will not only help you ensure the health and security of your investment portfolio but will also allow you to gain significant profits in the long run.
Be sure to develop a proper investment strategy, research, and choose investments that best suit your interests. Look for stable opportunities with a proven track record of success.
3. Avoid rushed investment decisions
Gandhi once said, “The world is sufficient for Man’s needs, but not for Man’s greed.” Planning your investments for short-term rewards can lead to you depleting your savings on dubious schemes. When reaching your financial goals, it is important to balance risk and reward.
Similarly, instead of focusing on only short-term gain, stay focused on the financial future you want. Are you planning to retire early, buy a home, or travel the world? Establish clear-cut goals that consider not only your current financial situation but also any future objectives.
4. Have a clear mind while dealing with financial adversities
Making wise investment and financial decisions requires a calm mind. Market conditions constantly fluctuate, but panicking and selling your assets may not always be the best decision. Stock market crashes are often just blips that recover on their own in the short term. Keeping your investments long-term is what yields the best results.
In case your investments perform poorly, it is important to stay collected and peaceful. Getting agitated can lead to more irrational decision-making and further complicate your situation. Instead, use this time to plan your future course of action.
5. Maintain discipline with your finances
Mahatma Gandhi was an advocate for discipline, a virtue that is immensely relevant to dealing with finances. For starters, it is crucial to map out and adhere to a budget. This lets you live within your means, channel your resources effectively, and plan for the future.
Start by meticulously tracking your income and expenditures to understand where your money gets spent and how much you require to maintain your lifestyle. This can help guide your decisions regarding savings and investing, leading to greater financial stability and growth.
6. Taking small steps for big returns
Anyone can start saving and investing—you don’t require a large bank balance for this. Dedicating a modest amount, like Rs.500-1000 every month, is enough to lay the foundations for future growth. It is also a sustainable amount that lets you navigate investing with less risk.
Once your knowledge and income grow, the amount you allocate towards your investments can also increase. Planning for the future does not require large initial amounts but consistency and discipline.
7. Persevering while pursuing your financial goals
Mahatma Gandhi’s perseverance in pursuing his goals was highly instrumental in achieving India’s freedom. Pursuing your financial goals can also be daunting, with many ups and downs. Unexpected circumstances like the loss of income, a crash in the stock market, injuries and accidents, or other sudden losses could occur.
However, you can overcome seemingly insurmountable odds with unwavering determination and persistence towards your financial goals. Take time to set realistic and achievable goals. Work towards them slowly and steadily to see returns.
To sum up
While managing your finances is challenging, staying committed to the journey is essential. Mahatma Gandhi was a prime example of perseverance and discipline, and his teachings are inspiring in many ways. They are also good philosophies to adhere to when dealing with your finances.
Another crucial aspect of planning your personal finances is choosing the right financial institution to help you through your journey. Turn to Tata Capital to help you achieve your financial goals. We have over 150 years of wisdom and experience in guiding our clients in their financial journey, a world-class digital platform, and experts to help you through every step of the process.
22 August 2024
6 mins read
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