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Writer's pictureKaustubh Kale

Avoid Listening to 10 Heads

Updated: Oct 22

10 Heads

“Duss (10) Suron Ki Sunoge, Toh Sahi Kaise Chunoge?” This phrase resonates with the story of Dussehra, where Lord Ram triumphs over Ravana, a demon with ten heads, each representing a different distraction or temptation. In the world of personal finance, these “ten heads” symbolize the overwhelming number of opinions and advice people receive when managing their money. If you listen to every voice and follow every trend, you’ll struggle to identify the right path for yourself.


Learn Personal Finance: Knowledge is Power

In today’s fast-paced world, financial advice is everywhere—friends, family, colleagues, social media influencers, and unsolicited internet tips. Not all of it will be relevant to your unique financial situation. To navigate through the noise, it’s important to take control of your financial education.


Start by understanding key financial concepts like risk, return, liquidity, and time horizon for different investment products. Risk refers to the potential loss you might face with an investment, while return is the profit you can expect. Liquidity indicates how easily an asset can be converted into cash, and the time horizon is how long you plan to invest before needing to access the funds. Learning these basics will help you evaluate which products—be it mutual funds, direct stocks, gold, real estate, fixed deposits, or insurance—suit your goals and needs.


By educating yourself, you will develop a critical eye that helps you distinguish between helpful advice and noise. Whenever you analyze any instrument, all four criteria (risk, reward, liquidity, time horizon) must be considered in tandem and aligned with your financial goals (such as children’s education, marriage, buying a home, vacations, cars, or retirement). Having a foundational understanding of these concepts ensures you don’t fall prey to quick-fix schemes or misleading suggestions.


Have a Financial Advisor: Like a Family Doctor for Your Finances

Even with self-education, managing your finances can be challenging. This is where having a reliable financial advisor, much like a trusted family doctor, plays a crucial role. Just as your family doctor understands your medical history and offers personalized care, a financial advisor tailors their advice based on your unique financial profile—your income, savings, risk tolerance, and future financial goals.


A good financial advisor helps you stay focused on long-term objectives while steering you away from emotional, impulsive decisions. They provide holistic advice, guiding you through market ups and downs, and ensuring you maintain a diversified and balanced approach to your finances.


So, this Dussehra, remember: don’t listen to 10 heads. Choose wisely, stay informed, and have a trusted financial guide by your side.


(The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal.)

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