Create a life strategy for a financially secure future
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What is life strategy? It's the strategy of your life; financially speaking of course. It is as simple as this or as complex as you can imagine it to be. It is exactly how you imagine your life to be, again financially. There are two aspects that constitute a life strategy– the elements or ingredients and guiding principles. The elements of your life strategy are nothing but your financial goals such as; I want to have R 2 crore worth of assets by the time I am 40 years old, I want to be able to have about R 50 lakh for my children, I want to have a farm house worth R 1 crore today in the next 20 years, I want to have an international holiday every six months, so on and so forth. You manage this by doing financial planning.
Now while you do financial planning for the above, there are certain other things that facilitate the fructification of such planning endeavour. These are what I call guiding principles. Together they fuse to formulate your life strategy. Just like the way a country has directive principles of governance it might be a good idea to make a little handbook of guiding principles for us to follow through.
The fundamental objective of such principles is to remind yourself especially in not so good times, that what you are doing is right and things must be done in this way. In better times it is to confirm to yourself that your theories worked out really well. The outcome from this is a sense of financial discipline which you develop and which can potentially transgress from one generation to the other. In simpler words, these are the things that you can teach your children.
These principles can be a mix of wishes, desires, decisions, observations, learnings and operational methodology or just about anything that you feel is important to your family, financially speaking. There is no set pattern of such principles and thus I urge, you make your own. The following are some isolated examples and they are not interlinked.