Personal-Finance

Gold is Gold—Is Land Gold Too? In today’s fast-paced world, it’s worth asking: do we truly understand the best ways to invest our money? While the previous generation offers invaluable wisdom from their experiences, the context has changed dramatically. Just think—there were no mobile phones 20 years ago, and now we’re navigating the complexities of AI. The Evolution of Investment In India, a long-standing piece of advice has been to invest in real estate and gold. This philosophy was so prevalent that many Indians allocated almost all their investments to these two assets. Alongside, fixed deposits (FDs) and small savings schemes—like those from the Post Office—were the go-to options. It’s easy to assume that only a select few—Gujaratis, Marwaris, city dwellers, and high-net-worth individuals—ventured into the stock market, as its depth and breadth were limited, with volatility posing significant risks for the average investor. ...

The Middle Path: Savings vs. Consumption A famous story about the grasshopper and the ant is often told to children to extol the virtues of savings and hard work. The story goes like this: In a jungle, a grasshopper and an ant live as neighbors. The grasshopper believes in enjoying life and living in the moment, while the ant plans and prepares for the future. During the summer months, the grasshopper spends time singing, dancing, and enjoying life, while the ant works diligently to store food for the winter. Yes, WINTER IS COMING. When winter arrives, the grasshopper finds itself hungry and cold, having no food stored up. The ant, on the other hand, is well-prepared and comfortably warm because of its hard work during the summer. The grasshopper asks the ant for help, and the ant does help, but not before reminding the grasshopper of its choice to spend the summer in leisure rather than working. The fable ends with a lesson: it’s wise to plan and prepare for the future rather than relying on luck or expecting others to bail you out. ...

Introduction This question has popped up multiple times on the internet and social conversations. Is home an asset or liability? You may have also thought about this question at some point of time. If you have read Rich Dad Poor Dad, Robert Kiyosaki mentions that an asset is something that delivers positive cash flow and hence a house is not an asset if you are living in it. If it is rented, it’s altogether a different matter. In fact, Robert Kiyosaki made most of his wealth through real estate. ...