How to manage
yourself and your wealth by Gaurav
Want to know how businessman manage their expenses. How they
manage money. learn about their life style. So let’s begin with our blog.
First you have to
ask one question to yourself. What does money meant to you? If you want to be
rich then your thinking should be like this.
Money is means to fulfil your needs and desire for self,
parents and family. It is a means to an end. You should have
enough of it but then the greed for it
also can end up destroying us. If you really want
to be millionaire then don’t be in greed. Greed can destroy you, your family
and your status. And in today’s world money is god.
So now I will ask you some questions and I will give my
opinion or my thoughts. And the answer can be fluctuate with your choices. Now I
will ask a question and you have to present your views.
What are your top
financial goals as an individual?
For any parent, the kid comes first.
Providing for your kid is at the top of
you mind, so that he has a decent education and he has a decent lifestyle.
Then, of course, providing for a high quality retirement where you don't have
to compromise on lifestyle once I retire. I'm a little bit of a gourmet connoisseur, I like to have my malt as well.
There are intermittent goals, such as
travel and, at some point, may be
housing. I do own a house, but it's in
my hometown (Nagpur). At some point,
if price and wallet permit, buying a
house in a Bangalore suburb of my
choice is also a goal. If you are buying a car then you
should be able to buy the same car three times. If you not able then It will
affect your future. So learn how to manage expenses.
What does your
portfolio look like?
Close to 85-90% of my money is invested in equities. All my incremental
money also goes in equities. I do not
count my PF (provident fund) in this. My first job was as an equity
analyst with a local brokerage firm. Even before that, I fell in
love with equities in probably 12th standard. I used to interact with
people in my family who were related
to stock markets. I've been in private
wealth firms now for 16 years. Hence,
from day one, it's been equities. Equity
investments for me are a combination
of stocks and mutual funds. I also hold a
lot of my portfolio in ESOPs. From the childhood I have
the curiosity about this field and now I choose this field as my profession. And
that’s how I am earning according to my vision. So follow your dream and
success you automatically come in your foot.
What was your most
successful investment? What are the mistakes you’ve made?
All the investments that I made in the
late 90s, and mind you I have not sold
a single share, have been the most
successful in terms of IRR (internal
rate of return ). I bought Nestle, ITC
etc., but on a very small capital. I
also do remember that I bought a
lot of the dotcom stocks which
went to zero. My experience has
shown that if you buy 2030 stocks
and hold them, the better quality
companies more than make up for
the duds. So, the lesson I've
learned is that in equities, patience and longevity beats
everything else. It is 90 per cent
temperament and 10 per cent skill. And I have done my mistake at the age of 18 I invested around
10000 without any knowledge and I had to face a big loss then I learned in deep
and now I am a successful investor.
How much emergency
funds do you have and where do you keep it?
I've always had this
principle that you should have at least 12 months of
your expenses as emergency funds.
You may call it very inefficient to keep
that amount of money idle, but I always have that amount lying in my
savings account. Now, there are even
savings banks accounts, which give you 67%. I tell people that maybe you
should have one year’s worth money. and that’s how you
should plan your money like this.
What kind of amount
would you require for your retirement?
Ten years back, if you'd asked me, I
could have put a number of ₹5 crore. But today, that number doesn't excite
me because my lifestyle has gone up. I
have figured it's a moving target.
Today, the target I am looking at is 200250 cores.
What is the most
important message to people on managing wealth? As philosophical as it may sound,
managing wealth, I believe, is predominantly about managing yourself.
If you know your own temperament,
you will be a better investor. Also,
keeping it simple, and thinking long
term is the crux of what I've learned in
24 odd years of my career. Ultimately,
you are your biggest cash generating
machine. So, invest in yourself as in
your career or your training, picking
up skills. Skills is most importance for us. Now we have the amazing
opportunities in next 5-10 years lots of companies will come in our country so
we have to ready with our skills. So we can grab the opportunities. Have you ever
noticed when some person got a job or any other things so peoples says he got
this because he is lucky. But the main thing didn’t know the hard-work behind
that. So do for yourself, for your family and do for maintain your status.
So that’s it for today. Met in another blog. so stay tuned. Let’s
become successful together.
Thank you
