Factors To Consider While Acquiring Financial Fitness - I

Often people look for the investment option with the best returns to resolve their money problems. But to acquire financial fitness, there are many more factors that need to be considered. Instead of focusing on finding a single shot solution for all of your money-related concerns, you must concentrate on starting from the very root and then build a system.

Even after working to our full capacity, often we feel a mess in our money lives and feel blameworthy for the same. The guilt trip gets even harsher in the moment of silence. The guilt of not making the clever financial moves on time, the guilt of not having enough for your kids, the guilt of not living life extravagantly, and much more. The guilt is further loaded with the pressure of long-term care of your aging parents and other inescapable responsibilities.

The very fact of not doing enough or not having enough can make us anxious. After years of hoarding cash in the name of emergencies, when there is a sufficient amount and the restlessness at its peak, there is a high chance that some contemptible individual will grab your attention with some catchy deal. The individual sounds smart, pushy, and knows how to play with your fear of not having enough. The agent throws some numbers at your face and presents a picture of your dream life. You are a smart person who knows very well that there is no single-shot solution. But just because your restlessness and uneasiness of not having enough were at their peak, you end up giving your money. Now, this can result in three ways - total loss of money, partial loss or you'll end up getting stuck with a bad investment which is yielding an even lower return than a Fixed Deposit. You don't want to be in this situation, right?

You do know that there is no single-shot solution but at the moment of restlessness, you might forget that. By building a system, you can save yourself from looking for the so-called 'right' investment. Often we don't realize how under-prepared we are in life. 

The mistake that many people commit is that they put a lot of emphasis on the product portfolio. In simple words, people tend to consider the money box as a container with multiple investments only. This thought process further triggers the question "What to invest in?" which shouldn't be the first decision.

In reality, your money box is much more than just a bunch of products. To make your money box work efficiently, first, you need to understand its purpose and how it can help you. A good money box will empower you in streamlining your cash flow. You will be able to keep track of your money. Also, this money box will have safety nets to serve you at the time of emergencies such as accidents, health issues, job loss, etc. The worst thing about an emergency is that you can't know that it's befalling. You just have to be prepared with liquid funds for at least 6 months of survival and maintain your lifestyle. No one knew at the beginning of the pandemic year 2020 that we will face a complete lockdown due to Coronavirus in the month of March. But the ones who had their safety nets could enjoy life as it is.