Before we start today’s topic I would like to thanks you all for the great response on introductory blog. Few friends want me to share Investment ideas, I am definitely going to do that however I would like to start from basic because it’s very important that we have our fundamental concepts clear & I am sure all along our journey you will realize importance of it.

So let’s start our journey, are you ready???

Investment – Word which has power to trigger human emotions. In blink of an eye so many word comes to our mind alike gain, speculation, risk, loss …..

Before we go on & start buzz session, I would like to touch base on basic concepts of saving & investment & let me tell you why I want to do it. I have had discussion with thousands of people till date within & outside India however I found that either they have mis-conceptions or they haven’t thought about saving & investment.

Let’s try to answer few basic questions

What does Investment truly denote & why do we invest?

• We sense uncertainty regarding future?
• We desire Freedom of choice & quality life?
• Do we want to be in position to support beloved ones & needy human beings?
• Is it a passion & something that makes you feel alive?
• Are we trying to create a new source of income?

I would want each & every individual to think about it. Answer to both questions (What & Why) will be unique still fact is ‘Investment can open doors to varied avenues that can turn our dreams into reality ‘.

Consciously or unconsciously all things we conceive in life starts with a Thought process. Therefore Investment being extremely significant attribute connected with our life, should start with thought process.

Thought Process which would be perfect blend of Vision, Values & strategy. Let’s talk about these 3 pillars of our thought process.

Vision – I am quite confident that everyone reading this blog has some or  other dream .It might be a dream of driving a luxury car or sending your son/daughter for higher studies or might want to get retired to pursue your passion in early 40’s or 50’s. or to create a trust to help under privilege kids for education. This is exactly we are referring to. This part of Thought process will help us Understand 3 major question How much I money I would need to fulfill my dream.

Values – Ok we need money & we need tons of money Agree but can we earn that money by gambling? Does that mean we can start partnering with someone who is running drugs racket ? Definitely not  this sounds horrible us right ? that exactly our Values are. We should commit to this fact that our wealth should be created only from legitimate business.

Strategy – Well I have vision to create a wealth & I am committed to it but will it take me anywhere ? We need to have a plan of action, execution of same & need to revisit the plan at least once a year to see how much progress we have made towards our goal. We might realize that we would need to invest in multiple instrument & ideas. We must consider imp aspects like risk & target corpus. Review every year will help us understand are we on track & all our investments are giving us expected return or no . Accordingly changes can be made & new avenues can be explored.

I hope you agree with me that above 3 are important aspects of Thought process, but let me suggest you a 4 step process, this will help you Organize your thoughts to progress ahead.

• Acknowledge / Understand & Subscribe
• Formulate a Plan
• Persistent Implementation of plan
• Routine evaluation & improvements if imperative

• Acknowledge / Understand & Subscribe – I know it becomes awkward sometimes to agree to this fact that we were missing on something important for our life or we might knew but we never done anything actively. This is the time let’s agree that Investment is must for us & commit yourself to this Thought. Only after we agree, we will in mood to understand details of this & then we can move ahead & understand what exactly needs to be done now. Once we start thinking about Saving & Investment, we will start molding ourselves at least at thought process level. Remember once we are convince actions will triggered rather that’s the way it should be. Don’t get caught up in too much thinking.
• Formulate a Plan – Though I find it difficult to buy Warren Buffets principal that first save & then spend, in reality we need to have a Budget plan created based on necessities rather than luxury & all deviations should be revisited each month end before spend of next month starts because that will give me chance to reflect on all expense items & will help us identify the expenses which can curtailed. This plan will give us approximate number monthly / annually which we can save
• Persistent Implementation of plan – Trust me it take lot of discipline if we want to stick to Budget & in fact it take more courage to self-criticize & correct ourselves. This actually Key to success & integral part of Strategy
• Routine evaluation & improvements if imperative – Our priorities & dreams keep changing, I might have to revisit my Objective & that’s fine to change it if it’s required. Same way even Economy & other factors are dynamic which might have an impact on our Investment returns

This Thought process / Brainstorming will lead to much clarity on below topics:-

1. What will be my investment horizon? Duration for which I want to Invest ( this actually related to vision / dream of yours )
2. How much risk I can take? This depends on your financial situation , your age & current financial commitments
3. How much amount I can really contribute? This depends largely on your spend pattern & your income
4. Which are priorities / important stages in life where I would need to spend e.g. Marriage, higher education of kids etc.

This is exactly what any Financial planner will do because these are Basic steps which one has to follow.

In fact I would suggest you to write down these milestones as this will be your first step towards fulfilling your dreams.

So energize yourself & let’s get going ………………….

My attempt it to induce your own thought process. At the outset delve into subject matter & seek answers for comprehensive questions relating to Investment to get Insight.

A moment’s insight is sometimes, worth a life’s experience

–   Oliver Wendell Holmes. Sr.

The moment we understand What is Investment for us & Why are we investing?  We are reflecting on our decision making infact we will start thinking about various things which are around our day to day life.

Do let me know your feedback .Next blog will be aiming at unfolding some ideas to keep pace with our Mesmerizing Journey