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By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

The Financial Magic of 8/8

AI Generated Image If numbers could talk, 8 would speak the language of wealth. When the date doubles into 8/8, it becomes more than another day. It becomes a reminder of financial power, balance and long-term abundance. Yesterday, the calendar read August 8 - 8/8. In astrology and numerology, this date is considered significant. The Lion’s Gate Portal August 8 marks the peak of what is known as the Lion’s Gate Portal - a period believed to carry heightened energy for growth, abundance and...

The Financial Magic of 8/8

AI Generated Image If numbers could talk, 8 would speak the language of wealth. When the date doubles into 8/8, it becomes more than another day. It becomes a reminder of financial power, balance and long-term abundance. Yesterday, the calendar read August 8 - 8/8. In astrology and numerology, this date is considered significant. The Lion’s Gate Portal August 8 marks the peak of what is known as the Lion’s Gate Portal - a period believed to carry heightened energy for growth, abundance and transformation. I am a financial advisor - not an astrologer or numerologist - but I find this date fascinating because of the symbolism attached to the number 8. In numerology, 8 is associated with wealth, power, ambition and balance. It is also linked with discipline, responsibility and karma - the idea that our actions produce results. When the calendar reads 8/8, many believe this energy is doubled. A Financial Checkpoint Whether or not you believe in astrology or numerology, the date can serve as a financial checkpoint - an opportunity to pause, reflect and take steps towards building wealth. I recommend treating 8/8 as a money mirror - a moment to ask yourself: Are my investments aligned with my long-term goals? Is my money working for me, or am I caught in an earn-and-spend cycle? Am I creating lasting wealth, or merely temporary income? Your Mid-Year Money Reset We often make resolutions on January 1. But by August, more than half the year has passed. That makes 8/8 an excellent occasion for a financial reset. Use this weekend for review and action. The intention may begin on a symbolic day, but transformation comes from what you do next. Review your goals and expenses. Make lumpsum investments where appropriate, increase your SIPs, check whether your insurance cover is sufficient and organise your financial documents. Also review your asset allocation. Money meant for long-term goals must be invested in hybrid and equity mutual funds, stocks and gold. Money required for short-term goals should remain in safer options such as bank fixed deposits and recurring deposits. Declutter Your Finances Close unused accounts, cancel unnecessary subscriptions, consolidate scattered investments and ensure that your family knows where financial information is stored. These may seem like small steps, but wealth is rarely created through one dramatic decision. It is built through disciplined actions repeated over many years. The Infinity Connection When the number 8 is turned on its side, it resembles the symbol for infinity - . That is what true investing is about - allowing consistency, patience and compounding to work over long periods. It does not create wealth overnight. Given time, the results can appear magical. Turn Intention Into Action As we move beyond 8/8, do not let the intention remain limited to a date on the calendar. Set a financial intention. Act on it. Review it regularly. Even the largest fortunes begin with focused steps. When your present-day financial actions begin matching your long-term goals, real transformation begins. (The writer is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

How wealth creation is beyond chasing returns

When we talk about personal finance and investing, most conversations revolve around returns. How much did an investment make last year? Which asset is performing best right now? But seasoned investors know that wealth creation is not just about chasing returns. It is equally about understanding risks, especially the ones that quietly derail long-term financial goals.


Whenever you invest in any product or asset class, there are three important risks you must analyse before committing your money.


The Risk of Temporary Volatility

The first and most visible risk is temporary volatility. This refers to short-term fluctuations in the value of an investment. Assets like equities, equity mutual funds, gold, and real estate can move up and down over short periods. Prices may rise, fall, recover, and remain volatile for some time.


This volatility often creates anxiety because losses appear on paper, even though nothing permanent has happened. Importantly, temporary volatility does not mean the investment is bad. It simply reflects market cycles or short-term sentiment.


What investors must understand is that temporary volatility is largely outside their control. Reacting emotionally to these movements often leads to poor decisions, such as exiting good investments at the wrong time or losing out completely on eventual opportunity gains.


The Risk of Permanent Loss of Capital

The second risk is far more serious - the risk of permanent loss of capital. This occurs when there is a possibility that you may lose a part of your capital or, in extreme cases, the entire amount permanently.


Examples include speculative options buying, investing in junk stocks based on tips, or investing in real estate with questionable legal titles or assets that eventually find no buyers and become highly illiquid. In such cases, the money does not recover with time. Once lost, it is lost for good.


Before investing, it is critical to ask a simple question. Is there a scenario where my capital can be permanently destroyed? If the answer is yes, that investment demands far higher scrutiny and strong risk control.


The Risk of Not Beating Inflation

The third risk is extremely critical and most ignored - the risk of not beating inflation. Inflation quietly erodes purchasing power over time. If your investments do not grow faster than inflation, your wealth may increase in numbers but decline in real value.


Many so-called safe investments fail this test. While they may protect capital, they may not help you achieve long-term goals such as retirement, children's education, or financial freedom.


This risk is often ignored because it does not show up immediately. But over long periods, it can significantly reduce your probability of achieving financial goals.


Where Should Investors Focus?

Temporary volatility will always exist and should not be the primary concern. Instead, investors should focus on avoiding permanent loss of capital and ensuring their investments beat inflation over the long term.


Successful wealth creation is not about eliminating risk completely. It is about choosing the right risks and avoiding the wrong ones.


(The author is a Chartered Accountant and CFA (USA). Financial Advisor.  Views personal. He could be reached on 9833133605.)

 


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