Ganesh Chaturthi is around the corner and festivity and fervour is in the air. It is one of the most favourite festivals of the Mumbaikars for its 10-day-long celebration of Lord Ganesh's birth. People of all age, religion, and caste from all walks of life show their ardent devotion to the lord by bringing his idol into their humble abodes or the make-shift temples (pandals) set up to offer pujas, prayers, and Prasad during the festival.
In this festive spirit, the "Elephant God" is the epitome of knowledge (vidya) and wisdom (buddhi). From the elephant head, ears, and trunk, to the little mouse at his feet, every part of Lord Ganesh is symbolic for traits and qualities we can imbibe for a successful and good life.
This year the state of Maharashtra prepares itself for muted celebrations of Ganesh Chaturthi due to the COVID-19 pandemic. The government has mandated all 'mandals' to take prior permission from the concerned municipality or local authority for Ganeshotsav celebrations.
However, Lord Ganesh is not limited to this 10-day festival. If applied to our daily lives, his attributes can create a better quality of life. There are many lessons Lord Ganesh can teach us, and one such thing is our personal finance management.
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Big Head represents Wisdom = Keep an open mind
As per some versions of the myth, Lord Ganesh's head was acquired from an elephant and personifies wisdom and intelligence. The massive head signifies broad-mindedness, perceptivity forward-looking and a deep ocean of knowledge.
The Elephant god teaches us to keep an open mind, think prudently, and seek knowledge. To make wise investment decisions you need to keep your mind open to gain more knowledge about various investment options and choose appropriately.
Drawing up a smart goal-based financial plan and prudently acting on it will help you secure your future. Try to have a foresight of how your investment would grow after 3 years, 5 years, and 10 years considering the effect of inflation on different investment avenues and make wise choices.
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Focus from the Eyes = Concentrate on your goals
Lord Ganesh's small eyes represents razor sharp focused approach to achieve anything and paying attention to details with concentration. Likewise, as an investor, you should always stay focussed and concentrate on your individual goal-based investment plan to accomplish your goals.
By focussing only on what you want to achieve, you will be able to carefully craft a well-diversified strategic portfolio based on your asset allocation that will be adept at dealing with inflation and provide good returns. Plus, it will also help you eliminate the unnecessary noise of the herd.
Having a holistic view and a long-term approach helps to maintain and grow wealth.
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Big Ears for good listening skills = Seek sound financial guidance
Without good listening skills, communication would be incomplete. Ganesh's big ears indicate that he is a good listener. Similarly, in order to be a good investor, one must be a good listener. A good investor listens with ears wide open to sound financial advice only.
Consider your ears as funnels to filter the important advice that will help you in achieving your goals. Keep your ears to the ground for any relevant news reports and the events happenings around to guide you in making well-informed investment decisions.
Pay attention to the advice from an ethical, unbiased, experienced, and research-backed financial advisor, to make better investment decisions. Remember to always involve your family in the decision-making process and listen to their financial goals and desires.
Listening in conjugation with wisdom will enable you to filter and choose what is right for you. Keep in mind your requirements, aspirations, and desires in terms of your financial goals, investment horizon, financial standing, age, risk profile, and the number of years left for the completion of your goal.
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Adaptability from the Trunk = Being prepared to deal with contingencies
The flexibility of Ganesh's trunk represents his adaptable nature and he follows what is righteous. Hence, the lord is also known as Vakratundaya.
As an investor, you need to track and review your investment portfolio and having a rainy day fund so that your journey of wealth creation is not derailed when life throws an unexpected curveball at you, such as family's expenses during an emergency, loss of a job, markets crashing, medical emergency, or any unfortunate event that comes with an economic loss for a period.
Ideally, you must have a buffer of the amount that covers expenses for 12 to 24 months and to deal with any kind of exigencies. Build an adequate contingency reserve or a rainy-day fund. It should be able to cover day-to-day expenses, pay rents, utility bills, insurance premiums, loan EMIs, and other unavoidable expenses (the responsibilities you shoulder) that are absolutely necessary to meet no matter what the situation is.
You can also opt for sweep in account, flexi deposit, or liquid funds or overnight funds if you desire a better rate of interest. Many people do not maintain a contingency fund and undergo both financial and emotional trauma during harsh or extraordinary circumstances.
Plus, be aware of any new investment options, with an open view, to efficiently adjust your portfolio. And keep track of any significant news that could impact your financial plan and investment.
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Removal of bad from One-Tusk = Reviewing and rebalancing your portfolio
Ekdantaya (one-tusked) is another name for Lord Ganesh. His one tusk is symbolic for weeding out the bad from the good.
Many investors lack the ability to understand that holding on to bad investments for their portfolio can derail their financial journey. This is as equally damaging as the removal of a worthy investment from your portfolio.
Hence reviewing and rebalancing your portfolio semi-annually will ensure your journey of wealth creation is on track. It gives you the opportunity to weed out the duds that have been underperforming consistently and to replace these with new ones, if you want to accomplish your goals.
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Large stomach represents greater endurance = Diligent and regular investing
The enormous stomach of Lord Ganesha teaches you to streamline the investments as if you are eating your meal or lord's favourite sweet dish (Modak) in small bites. Your investments should be made according to your appetite (risk, age, financial situation).
It would be best to invest systematically and diligently. Investing in mutual funds via the SIP route is easy on the wallet and gradually compounds your wealth according to your financial capacity. Due to the rupee-cost averaging in volatile markets, it makes timing the market irrelevant and will grow your investment over time.
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Not being biased from Axe = Don't give in to your emotions while investing
The axe wielded by Ganesh tells us about not falling prey to emotions or any form of biases during investments. Think logically and freely, do not let the short-term undercurrents of market downswings cause you to lose your peace of mind.
Considering the current upheaval in the markets caused due to pandemic, do not redeem your investments or discontinue your SIP during this phase. In fact, don't panic and give into your emotions to redeem your investments, focus on the long-term prize (Ganpati's favourite dish modak) of accumulated wealth.
Similarly, when you see an excessive loss in your portfolio over the long term due to consistent underperformance across various market cycles, or a sudden change of your risk ability, do not harbour any anchoring bias to that investment because it's unhealthy for your financial well-being.
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Simple living (Humility) from Mouse (Vahana) = Simple living, high thinking
The tiny mouse in Hindu mythology is represented as the vehicle or vahana of Lord Ganesh. It speaks of his humility, demonstrating the most important lesson of life: Simple living, high thinking.
The current pandemic has probably given all of us an epiphany... that to live we require only essentials. So, live within your means; save before you spend, and avoid impulsive credit card swiping for instant gratification. Engage in prudent budgeting exercise to save and invest wisely. Higher thinking empowers you to aspire for a better tomorrow through a robust financial plan.
I hope you will try to imbibe these 8 lessons for your overall financial wellbeing. Develop your pool of knowledge and gain wisdom from your successes and mistakes. Perseverance grows wealth.
So, if you have been having troubles keeping your finances in order and worry relentlessly about your future, this is a great time of the year to begin financial planning with the blessing of the Lord Ganesh.