On Financial Jargon, Money Mindset and Importance of Will
3 Stories to Inspire and Educate You on Your Journey to Financial Wellness
A budget tells us what we can’t afford, but it doesn’t keep us from buying it.” – William Feather
Rohan and Priya’s Financial Quest
Rohan and Priya, a young couple from Mumbai, were excited about their future together. They had recently bought their first home and were expecting their first child. However, they often found themselves puzzled by their finances. Despite earning well, they struggled to understand where their money was going.
One evening, Rohan decided to take charge. He sat down with Priya and suggested they learn about financial statements. They started with the basics: balance sheets, income statements, and cash flow statements.
Rohan explained to Priya that a balance sheet shows what they own (assets) and what they owe (liabilities). An income statement reveals their earnings and expenses, while a cash flow statement tracks the money coming in and going out.
They reviewed their income statement, noting their salaries, side hustle earnings, and expenses. This helped them see their net income clearly.
Next, they looked at their balance sheet. They listed their assets, like their home and savings, and their liabilities, such as their home loan and credit card debt.
They tracked their cash flow, realizing they needed to manage their spending better to maintain liquidity.
Rohan suggested comparing their financial statements over the past year to identify trends. They noticed an increase in discretionary spending, which they decided to curb.
Finally, they used financial ratios like the debt-to-equity ratio to get deeper insights into their financial health.
This exercise was a turning point for Rohan and Priya. They felt more in control and confident about their financial future. Understanding financial statements became their key to making informed decisions and achieving their goals.
Ananya and Vikram’s Money Mindset Makeover
Ananya and Vikram, a young couple from Bangalore, were always stressed about money. Despite having good jobs, they felt they were constantly struggling to save. One day, Ananya stumbled upon an article about the psychology of money, which sparked a change in their approach.
They decided to set clear financial goals. They wanted to save for a vacation, build an emergency fund, and start investing for their child’s education.
Ananya and Vikram began practicing gratitude. Instead of focusing on what they didn’t have, they appreciated their achievements and the small joys in life. This shift in mindset reduced their financial anxiety.
They committed to educating themselves about personal finance. They read books, attended webinars, and followed financial experts. This knowledge empowered them to make better financial decisions.
The turning point came when they realized that their mindset was the key to financial success. By setting goals, practicing gratitude, and continuously learning, Ananya and Vikram transformed their financial life. They felt happier, more secure, and ready to face any financial challenge.
Arjun and Meera realize their ‘WILL’ power
Arjun and Meera, a couple from Delhi, were busy professionals with two young children. They had never thought much about estate planning until a close friend passed away unexpectedly, leaving his family in a difficult situation. This incident was a wake-up call for Arjun and Meera.
They decided to create a will to ensure their assets would be distributed according to their wishes and their children would be cared for by trusted guardians.
Arjun and Meera sat down with a financial advisor to draft their will. They appointed an executor to manage their estate, specified how their assets should be divided, and named guardians for their children. This process gave them peace of mind, knowing their loved ones would be taken care of.
The turning point was their realization that a will is not just for the wealthy; it’s essential for anyone with dependents. By taking this step, Arjun and Meera ensured their family’s future was secure, avoiding potential disputes and ensuring a smoother probate process.