5 Mantras of Financial Discipline in Life

Oct 24, 2019

5 mins | Views 9889

A tea vendor from south India took his wife on a world tour. Being owners of a typical roadside tea-stall, they are by no means people with bundles of cash lying around. However, what made him achieve his goal of exploring the world was his financial discipline in life.

He is not an exception!

All over the world, many people achieve their dreams, not because they are millionaires, but because they are money smart. It is possible to #FreeYourPassion by being wise with your money and following the principles of discipline. This has the potential to not only make your life more joyful but also lead to sustained financial stability. Financial discipline does not mean principles or habits that are difficult to follow or demand sacrificing your comforts for a better future. Rather, these are smart practices capable of providing all-round success in life. Let’s go ahead and explore them in detail.

Goal Setting

Until we know what our destination is, it won’t matter which vehicle or how much fuel do we have. Things are no different with finances. We need to have clear financial objectives in life, and then work our way towards those. For instance, one might want to travel around the world or open own dance studio and so on. Setting your passion as your goals ensures that we channel our hard-earned money to live our passion in the best possible way.

One step at a time

You don’t necessarily need a windfall to become rich. Even a person with average earnings can make systematic investments and over a period of time, these can lead to a sustainable future. Systematic Investment Plan (SIPs) is one of the ways to adopt this approach. One can start investing as low as INR500 per month towards their goals.

Save your surplus

Even if your body is strong and energetic, you don’t necessarily exert yourself to exhaustion regularly. In the same way, our emphasis must be on spending only on what is needed and avoid splurging excessively. This would lead to creation of surplus money which can then be saved regularly to create a buffer fund.

Repurpose your assets

A farmer doesn’t get produce from his land merely because he owns it. He needs to put in seeds, fertilizer, and toil hard patiently. Only after this can he get a harvest. Your assets are no different. Whether it be a secondary house or a familial property which is lying locked for years or money lying idle your account, all assets are potential sources of financial growth. You can sell/rent properties you are unlikely to use or invest your idle money to further secure your financial future. Wisdom lies in taking a smart and long-term oriented step.

Diversify

Diversifying and acquiring new skills is a highly beneficial life habit. The world is constantly changing, and what works today might not work tomorrow and vice-versa. Similarly, while you can invest into products that have yielded good results for you in the past or are doing well at present, it is also important to diversify your investments across different asset classes. This will let the results speak for themselves and is generally a better investment strategy than putting all your eggs into one basket.

In conclusion

We all have aspirations in life and passions that we may be forced to suppress due to financial constraints. However, many of these constraints can be easily done away with financial discipline and healthy money management habits. In today’s world, mutual funds can be one of the options that can empower you to #FreeYourPassion, all we need is financial discipline in our lives!

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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