Yoga is the integration of mind and body, alignment of thought with action. It helps to build a better life if one is aligned with timeless principles of creating, managing and preserving wealth. In these times there is not only a financial cut which everyone has taken, whether salaried or a professional or an entrepreneur, it also has created an emotional impact as many people associate their self-worth with their finances.
Accept the situation
To do yoga one needs to sit cross-legged on the ground for any major set of asanas. Similarly, at this stage, one needs to accept emotionally as well as the reality in front. We, as human beings, don’t like to accept the truth.
After emotional acceptance, one needs to assess income, expenses, assets and liabilities over the medium term, which is one to three years. As the economy recovers, the finances will also recover if one is prudent about it. This is a period where one can sow the seeds of good financial habits.
A good financial habit is Income – investments = Expenses
This means that you pay yourself first. Most people find it difficult to do so as they get tempted by notifications from various online shopping platforms. One of our clients started an SIP for his children who were spending their entire salary on deal of the day and managed to save hardly a meagre amount.
In this post-Covid situation as only the basic expenses are being looked at, it would be easier to implement.
Deepen the way you look at information
Being in an information world we are overwhelmed with messages on our finances. We tend to overreact and take decisions which harm us. A prudent principle is “Less is more”. It means a focus on a couple of things which you understand will help you achieve the goals.
As in pranayama, one inhales for five seconds, holds for five seconds and then exhales. Similarly one needs to look at the options thoroughly, hold through a certain part of the cycle and then hopefully achieve a profitable exit.
A calm mind, not driven by greed or fear, tends to achieve better. In the current situation, many people have been looking for short term gains. The time is now to book those gains and sit on cash as this is the phase where speculation driven by greed is highest and one may lose when the tide turns.
If you look at the medium term, investing now in a gradual manner will help to achieve all of your financial goals.
Take a break from investing
Now you will find this piece of advice a bit contrary coming from an investment advisor. There are phases in your life when you need to let go of the past to create the future. A realignment of understanding your goals concerning your financial foundations is important.
Maybe you need to clear that loan before you retire a couple of years from now. That may be a priority under the new normal. It depends on your phase of life.
What to do when one is ready?
Suryanamaskar in financial terms is an integration of your financial foundation and channelising resources in areas where growth can be achieved over the medium term. One needs to look at the future and rise early. The earlier you spot the trend the greater the margin of safety. Once you have 12 months of fixed expenses parked in a liquid fund, growth investing can be thought of.
May your hopes and dreams come to life. Take the first step now to correct yourself if needed and let the future unfold.