On Defining Goals, Navigating the Stock Market and Determining Risk Tolerance
3 Stories to Inspire and Educate You on Your Journey to Financial Wellness
"If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed."
-Edmund Burke
Ria and Sanjay's Dream List
Ria and Sanjay, a newlywed Bengaluru couple, loved discussing their dreams. One weekend, they started making a list of all they wanted to achieve as a family: owning a cozy home, saving for an adventurous Europe trip, and, someday, starting a college fund for their future kids.
After jotting everything down, reality hit; they needed a plan to turn these dreams into a secure financial future.
The next day, Ria read about setting SMART financial goals and suggested they break down each dream into actionable steps:
Ria and Sanjay first visualized their ideal lifestyle and decided which dreams were most important to them right now. They knew a home was at the top of the list, followed by savings for their Europe trip.
They broke down their list into specific goals: ₹10 lakhs for a home down payment in five years and ₹3 lakhs for the Europe trip in two.
Though they wanted to do everything, they knew their house fund had to come first, so they allocated more toward it each month.
They added up their monthly income and decided to save 20% each month. That meant cutting back on spontaneous splurges, but their dream house made it worth it.
After some research, they realized that fixed deposits wouldn't grow their money fast enough. Instead, they started a mutual fund SIP for the Europe trip and explored equity funds for their home fund.
They set a monthly "money date" to track their progress and make any adjustments. This little ritual helped them stay motivated and brought them closer as a team.
By following these steps, Ria and Sanjay were on their way to making their dreams a reality. They learned that setting specific financial goals wasn't just about the money; it was about knowing precisely what they wanted and working together to get there.
Sneha's Stock Market Secret
Sneha always felt intimidated by the stock market. As a mother of two with a tight monthly budget, she worried that investing was only for high earners or people who could afford to lose. But after chatting with a friend who invested small amounts through SIPs, she decided to take the plunge on her terms.
Sneha made a few fundamental changes that helped her overcome her fears and finally embrace the stock market:
Sneha realized she was a conservative investor at heart. She didn't want the stress of big swings, so she started with a balanced approach. She divided her investments across debt funds and a small, conservative mutual fund to keep things stable and secure. Finding her style made her feel more comfortable, like she was in control.
Instead of waiting for "the right time" to invest, she started a SIP that allowed her to invest a small amount each month. This was her secret; she didn't try to time the market. The consistency of monthly investments smoothed out the ups and downs, and soon, she stopped worrying about the daily market changes.
Sneha's friend introduced her to a fund focused on sustainable investing, which supports environmentally and socially conscious companies. Investing in companies that matched her values helped her feel good about where her money was going, and it gave her peace of mind that her investments were in line with her principles.
In six months, Sneha saw her money grow more than it had in her bank account. It wasn't just the financial returns that felt rewarding; it was the confidence she'd gained by understanding her style, being consistent, and investing in line with her beliefs.
Amar and Priya's Financial Balancing Act
Amar and Priya had two children and a steady income from their corporate jobs in Pune. With retirement and the kids' future on their minds, they wanted to invest but weren't sure how much risk they could take. They didn't want their hard-earned money exposed to big losses, yet they also wanted returns that would grow over time.
They tried a few options, but Amar realized he constantly checked his investments, anxious about their performance. Priya, on the other hand, was more relaxed and open to longer-term investments.
One night, over tea, they had a candid discussion about their comfort levels:
Amar confessed that even a 10% drop made him uneasy, while Priya was willing to risk more. They decided Amar would focus on safer investments like debt funds, and Priya would handle a small equity portfolio for their long-term goals.
They balanced their funds to match both comfort zones. Amar invested in a mix of bonds and fixed deposits, and Priya added monthly SIPs in equity mutual funds. This approach gave them the best of both worlds, a stable base and some growth potential.
Priya agreed to check in with Amar every quarter to review their portfolio together. If Amar felt comfortable with the returns, they would slowly adjust his investments toward higher returns over time.
This plan helped Amar relax, and he saw that financial planning wasn't about "one-size-fits-all" advice; it was about finding the right fit for their family. The balance they achieved became their secret to a stable and fulfilling investment journey for the long term.