- We invest in FDs because our parents did. What we dont realise is the fact that interest rates have climbed down and better options have come up. We still live in the past because change is pain.
- We still believe that buying house is a good option. This probably was a good option at one point in time when the rent law ensured that people rather keep their houses empty than giving it on rent because the law encouraged tenants not to vacate. Therefore people struggled through life and made their dream home. Today the law has changed and best of homes are being rented out at 2% yield. Moreover standardization of houses means we have a large supply of quality homes to choose from.
- Jobs are safer than business: This was the held belief as we grew up. Those were the times of job security. This no longer holds true. Today jobs may be high paying but jobs are vulnerable. Retirement age remains 60 only on paper. Otherwise 50 our less is the retirement age. With more than 10 best years vanished how does one live through a long retirement without entrepreneurial thinking.
- Saving is the only way of good living. This probably true in the past but one needs to now observe using new lens of investing and compounding which not only ensures you have more wealth but also consumption a virtue. While self medication or do it yourself was the investing norm back then during the FD and fixed income era, it no longer holds good today. A FINANCIAL ADVISOR brings solutions not only for wealth creation but also for good living and optimum spending. Spending helps you to live well but also keeps the economy healthy
- We grew up believing that medicine and engineering were default careers.While engineering has nearly dried up with vacant seats year after year other creative options have sprung up. Film making, animation, design, sports which were perhaps looked down upon in the past have become better choices.
- Back then we looked down upon those who couldn’t make it to the science stream and chose commerce and arts but now tables have turned upside down and how. Science which the ‘in demand’ steam has completely lost out too commerce and science. Still there are parents who cannot rise above the tried and tested formula of Engineering+M.B.A+Job.
- Getting educated abroad was the gold standard. US and the western world was the gold standard. There are many who still believe so and blow up crores of rupees on their children’s education abroad even though job opportunities there have shrunk and in all likelihood these children will be back home hunting for a job which will award no additional premium for foreign education. If education is the objective then find out about distance learning. And if experience is what one is seeking for then select an exchange program which makes you spend time with a family in a foreign land. That way you not only get rich learning of cultures and learn the tricks of adapting and adopting but also it comes at a pittance compared with University education. Traveling and holidays too is a better option than doing the same in the garb of education.
- Gold was the preferred ornament for women in India. Which girl even has gold in her mind these days.
- A car was meant for transportation. Today it is a symbol of reputation. I know of people owning Mercedes and happy to use Uber Go.
- Marriages were conducted by parents to fulfil their responsibilities. The groom and his ilk demanded the hell out off the girl’s parents. The power equation was tilted in favour of the groom and his family. With working and educated girls this equation is no longer tilted. Children no longer seek huge ceremonies and functions preferring small cost effective gatherings. Marriages of the future may become a very private affair
- Financial Planning and professional advice was not seen as vital because people at large lived from hand to mouth and energy opportunity of saving was grabbed instantaneously. With less wealth and simple fixed income products, people followed the do it yourself approach. However today income and wealth levels have shot up and a lack of professional advice can cause massive wealth leakage. Hence financial intermediation has truly turned into a necessity.
- Our parents encouraged us to become doctors and engineers; to follow the safe path. Today parents have a lot more money, lesser children and there are indeed more opportunities. Shouldn’t parents encourage their children to take more risk instead of behaving as their parents did.
This can go on and on in every area.All that is needed is some serious introspection.
What clearly emerges from all this is the fact that past performance is definitely no formula to forecast our future.
We need to observe and reinvent ourselves throughout our life.
rammoney 