Do More With Reuters
Partner Services

Life is about balance

Tue Jan 6, 2009 10:56am IST
 
Email | Print | | Single Page
[-] Text [+]

By P V Subramanyam

I just came back from a short holiday – and it was fun. I try to steer many conversations to personal finance conversations. To me all decisions have to some how complete the basic, simple requirement of helping people towards their personal goals – or the activity is not on!

One major topic of discussion was one individual’s balance of several different aspects of his life as he approached retirement age. Let us call him M. M lives in a nice 3 Bedroom apartment in a metro in India. He has a very well-paying job, but he also has a taste for expensive ‘toys’.

At any point in time he could have 20 unopened shirts, a couple of new suits, a few CD players, a few ‘000 Cds, the latest mobile phone, etc. He may not really like his job, but likes the trappings of designation, the number of stickers on his baggage, and of course the cash flow.

M occasionally feels that he should cut down on his expenditure and start building a nice retirement corpus. He is of course building a nice corpus for his retirement, but the worry is his spending pattern will have to change much faster as he approaches retirement! He argues that he would not like to do anything remote like that. That is the worry. His wife is quite worried about the example he is setting for his children. And his children think money is easy to come by.

And I wholeheartedly agreed with her.

Unfortunately there is no one-size fits all theory available! Some people feel most natural when they’re very frugal, while others find a better balance with more spending in their life. There are people who will spend a lot on eating out, clothes, ‘toys’ like digital camera, vacations, etc. While there are some who will live a frugal life, but blow big time money on foolish investment schemes!

Whatever you do, you need to spend less than you earn! If you think this is common sense, you should watch the “Can I afford it?” segment on television! Suzie Orman does it in the U.S. If you spend less than you earn over an extended period of time, you avoid that painful experience.

It’s a balancing act, in life, surely! If we simply give in to every whimsical desire we have, virtually no one would spend less than they earn.   Continued...

Dubai Debt Fears

Villas are seen on the The Palm, Jumeirah, with Atlantis, The Palm, under construction on the breakwater (crescent), May 3, 2008.  REUTERS/Jumana El Heloueh

Banks outside the Gulf played down their exposure to Dubai debt, after fears the emirate could default and even derail world economic recovery prompted a sell-off in global markets.  Full Article | Slideshow 

health is wealth

Health is Wealth
Buying health insurance

Health insurance is one of the financial products that every individual and family must have. Here are some tips on how to buy health insurance.  Full Article 

India Investment Summit 2009
India Investment Summit 2009

Top executives and bankers discuss their own plans and the broader opportunities and challenges for India.  Full Coverage 

Photo
People stroll outside the Taj Mahal hotel ahead of the first anniversary of the militant attacks in Mumbai, November 24, 2009.  REUTERS/Punit Paranjpe
Investors worry about another attack

The risk of militants striking again worries investors who fear that a second attack similar to last year's Mumbai raids could shake the economy.  Full Article | Full Coverage 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives

road to Copenhagen

BLOGS

Photo
Calculated Move

Reliance aims big with $12 bln bid for LyondellBasell.  Blog 

SHOWCASE

Capital Raising
Capital Raising

Analysis - China banks' rush for billions could trip markets.  Full Article 

 
Photo
Bonus Payout

"Bonus" has become a dirty word on Wall Street.  Full Article 

 
Bubble trouble?
Bubble trouble?

With the BSE Sensex at around 17,000 points, are the Indian equity markets looking at a possible bubble?   Commentary 

 
Funding Blues
Funding Blues

A popular tactic used by Indian brokerages to raise money for rich clients is likely to be banned.  Full Article 

 
Recovery Path
Recovery Path

Indian techie logging out of downturn gloom.  Full Article 

 
Central Banks Cautious
Central Banks Cautious

Reuters tracks the policies of the world's top central banks as the debate over global economic recovery rages on.   Full Coverage 

 
Risky Proposal
Risky Proposal

Rupert Murdoch courts trouble if he blocks Google on news.  Full Article