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SIGNIFICANCE OF PERSONAL FINANCE AND INVESTMENTS

YB WEB DESK. Dated: 4/21/2021 12:02:43 PM

Personal finance is one of the most crucial things to master to ensure financial independence as early as possible, eventually leading one towards the path of a wealthier and relatively unbound lifestyle compared to most others around us. Yet, it seems almost impossible to find the right time to invest in whichever field we might find of interest. The tendency to overthink emerges as a significant hurdle in such processes, eventually creating a blockade from the possibility of initiating a step towards whatever needs to be done. Although it might sound similar to procrastinating, it’s not. Procrastination is just an outcome of our overthinking. There are several psychological factors involved in this besides indulgence of human greed and the fear of missing out in the bigger picture. It would be simple to understand these factors with a simple example; Suppose an individual wants to invest his or her surplus income into equities stocks looking forward to earning decent returns on their money. The person thinks a billion times before investing the money. This feeling is reluctant and mainly arises out of the fear of missing out on the perfect time to initiate, or if worse, it may be due to fear of facing a potential loss in future. Hoping to find the right time to invest when the market falls, eyeing higher gains, this moment seemingly never arrives as the charts keep rising every day. It is not to say there will never be a downward pattern to this, but that the possibility of this happening is relatively quite lower. Hence the experts suggest there’s never a perfect time to invest in equity markets as one never knows when the economy and markets would go up or down. However, contrary to it, history stands as a firm example to showcase that in the long run, everything, including the economy, the GDP and the markets, eventually rises as humanity progresses towards the future with better advancements and innovations assisting in the same. Countless miss out to explore these fields, especially in a developing country like India, where the majority fail to understand the basic working framework of this system. This lack of understanding creates either the fear of potential loss or the fear of missing out, which eventually bars us mentally from entering this scenario. Missing out on the opportunity to grow as the world and humanity expand towards the future.