Ever since the start of the lockdown towards the end of March, we’ve been hearing numerous stories on more people facing financial crunch.
Some of them have lost their jobs, some of them have had to face pay cuts, some are facing delayed salaries. Read more about how to deal with pay cuts or job loss here.
Things have taken a turn for worse for some, with few even resorting to extreme measures like suicide. Today, I want to share with you how a 74-year-old, retired man is living through the crisis with ease.
And yes, he has invested a substantial part of his savings in direct equities and mutual funds – and he is barely worried about them.
Why? How? What’s the secret formula he has followed?
Do you have these questions in mind? I am sure you do!
His words of wisdom
In his words: “I’ve been investing in the stock markets since 1985. I’ve seen many crises that the stock markets have faced. Initially, I used to panic, but then I knew that the fundamentals of the companies I had invested in were strong. After a couple of falls, I didn’t even bother. If I can give an example, during the fall of 2008, every single person I met told me to sell off everything and hold on to cash, I didn’t’.”
And he continued: “I’ll just advice you 3 things if you want to enjoy financial freedom:
- Avoid debt as much as you can. Taking even a small loan can put you into a habit of living on loans.
- Saving & Investing is not a one-time activity – it is a lifelong process.
- Never indulge into panic buying or selling – even if you are at a risk of losing out on some profits or incur some losses.”
Well, I am talking about my very own father and when I see him enjoying his retired life (tension free), I am sure what he says makes sense.
And especially when I see people around buying those latest phones, gadgets, travel and do a hell of a lot of things on EMIs, and indulge into either short-term trading or panic buying/selling of their investments and come times like these, financial lives go into a complete mess. And I am sure if the financial part of the life is in a mess – it does affect the overall atmosphere at home as well. Right?
It is for reasons like these, that one needs to understand, plan & invest, not just for himself/herself, but by and large for the peace and prosperity of his loved ones as well.