Don’t let fear decide your financial path | Economic Times

We scrambled to get Rs 20,000 invested in time to claim the tax benefit. This wasn’t too long ago. In the 1990s. When our salaries were modest; and fears for the future ran high. End January was still the deadline for employers to get our investment information. Tax refunds took ages to come. Some fears are so overdone and that is a shame.As young earners raising two children and caring for the extended family on both sides, the husband and I saw ourselves like horses that must run tirelessly. We were in our 30s. We denied ourselves many simple joys; could not come around to making any decisions of luxury for ourselves; kept long work hours and pushed ourselves for getting better; and saved as if tomorrow held unknown setbacks. When we hit the 40s we began to breathe as earnings got better. By the time we were in the 50s we knew we had done enough and a little more with our profession, savings and investments. Now as we nudge the 60s, we are asking ourselves, if we could redo it, what would we do differently?First, we will drop the fear. Everything works out just fine. There is no need to worry about the future. The future holds beautiful opportunities we don’t know or can dream of. The unknown means unknown nice things too. Keep going and don’t let fear drive you to too much caution with money. Or too much conservativeness to spending.Second, we will not beat ourselves about not being able to save early. In the first 10 years of work life, people like us who had extended families to also care for, could not save enough. That is just fine. No harm.There comes a time when expenses drop and incomes rise and you still are earning and saving and making up for that late start. Third, we will apportion money for indulgence and for saving, treating both as equally important. Once a monthly treat of an evening out seemed like luxury then. Now people routinely order in three work day dinners and go out with friends every weekend. Our frugality seems so overdone. We would be kinder to ourselves.If we were to do the same again, we would be more optimistic and relaxed. What did we do right and feel proud about?First, we focussed on our work and grabbed every opportunity to learn and grow. No one could have predicted the changes that India went through when we joined the workforce in the mid 1980s. We were fortunate. We also grasped what came up with open arms and gave it our best shot. If one can reach the peak of one’s professional career by the time one is in the 50s there is enough to spend, save, and give. There are really no fears about income if work ethic is right.Second, we lived a life without debt. Borrowing was a source of great discomfort to both of us. We risk being called super conservative and unwilling to use leverage, but we dislike debt. We repaid our home loan in five years even if it did not make financial sense. Sometimes one must just do what one is comfortable with. Even if it is not mathematically the right thing to do.Third, we made giving a habit. From the first income we earned, we ensured that what we had was shared and that it helped those less privileged than us. We also learned a valuable lesson about giving along the way.True giving is not felt by the giver or the receiver. It happens as if it is the right thing to do and the most natural way to do things. Integrating others into your life is how this can happen. We learned that emphathy for people around us enables us to support them seamlessly.What would we tell our children, if they asked for lessons about money from us?First, do not treat money too lightly and do not treat it too seriously either. Money and wealth bring you the security and confidence to make choices that make the world a better place. You extend your vision beyond the basics for yourself and your family. Use money as that provider of comfort, choice and security. Don’t see it as an end goal. Being moneyed allows you to be a master of your time, your life and your work. Seek money and wealth for that freedom.Second, there is more to living than money alone. Life’s little joys come from the innumerable experiences that invariably involves others. Being empathetic, caring and inclusive matter much more than being wealthy alone. Make sure you bring little joys into your life and in the lives of people around you. Make the effort to make little experiences matter to yourself and others. Buy that box of ice cream on your way home, even if it meant standing in line for longer than you wished. Don’t let tiny discomforts come in the way of living life with joy.Third, invest in equity—through stocks and funds. With the power of participation in the best businesses that others are running, your money grows significantly. You focus on your work and your earnings and savings. Your money accumulates and appreciates in the background powered by the work so many others are putting in to excel, to win, to amaze and to add value. Equity investing is your key to growing your wealth. Do not let money lie idle.As we both contemplate the 60s in our lives we realise that money, time and energy aren’t available together in any stage of one’s life. When we were young and had all the energy to trek the world, we had jobs and family to devote time and energy to. In the middle age when money was relatively easy to allocate and energy still high, the demands of our profession meant we had no time to allocate. Now we have the time and the money, but the bones are weaker than before. We still hope to trek the mountains and walk the beaches, we hope.As we lie here at the hills on a dark night amazed at the million stars and unable to sleep under such beauty, we tell one another that the best things in life are still free and available in abundance. No money needed to enjoy them. None.(The author is chairperson, Centre for Investment Education and Learning.)