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By:

Kaustubh Kale

10 September 2024 at 11:37:15 pm

Modak and the Art of Investing

As the aroma of freshly steamed Modaks fills homes during Ganesh Utsav, the festive spirit comes alive instantly. My mouth is already watering at the thought! The humble Modak, prepared with love to honour Lord Ganesha, may look simple from the outside. But anyone who has tried making one knows that a good Modak depends on several things coming together - the right ingredients, the right recipe, patience with the process, and finally, enjoying the result. Investing is surprisingly similar....

Modak and the Art of Investing

As the aroma of freshly steamed Modaks fills homes during Ganesh Utsav, the festive spirit comes alive instantly. My mouth is already watering at the thought! The humble Modak, prepared with love to honour Lord Ganesha, may look simple from the outside. But anyone who has tried making one knows that a good Modak depends on several things coming together - the right ingredients, the right recipe, patience with the process, and finally, enjoying the result. Investing is surprisingly similar. Choose the Right Ingredients A Modak is only as good as the ingredients that go into it. Fresh coconut, good-quality jaggery, properly prepared rice flour and the right flavours all contribute to the final result. Our investments and financial products are the ingredients of our financial plan. Equities, mutual funds, fixed income, gold and other investments each have a specific role to play. The objective is not to pick whatever appears most exciting at the moment, but to select suitable, good-quality investments that match our financial goals, time horizon and ability to take risks. Health and life insurance are equally important ingredients. Adequate coverage helps protect savings, the family, and their financial goals and dreams. Good ingredients provide the foundation. But ingredients alone are not enough. Get the Recipe Right You may have the finest ingredients in the kitchen, but if the proportions are wrong, the Modak may still not turn out well. The same applies to investing. Asset allocation is the recipe of a financial plan. Too much of one ingredient can spoil a Modak. Similarly, excessive concentration in one asset or too much money in low-return products can spoil a portfolio. Balance is key. A thoughtfully constructed portfolio brings different investments together in the right proportions. To keep asset allocation very simple - short-term goals can be planned through bank fixed deposits, recurring deposits and debt mutual funds. For long-term goals, one can consider hybrid mutual funds, equity mutual funds or direct stocks. Trust the Process Once the Modak is shaped and placed for steaming, constantly checking whether it is ready will not make it cook faster. Investors often make the same mistake. We keep checking markets, reacting to every correction, chasing recent performers or changing strategies because of short-term noise. Good investing requires patience and discipline. Invest regularly, review periodically and allow your financial plan enough time to work. Compounding is powerful precisely because it rewards those who remain invested for long periods. Sometimes, the best thing an investor can do is simply avoid unnecessary interference. Enjoy What You Have Created Finally comes the most important part - eating the Modak! The purpose of investing is not merely to accumulate the largest possible number on a statement. Wealth should eventually help us fulfil our goals, support our families, create financial security and enjoy life with greater peace of mind. A good Modak needs the right ingredients, the right recipe and trust in the process. A good investment journey needs exactly the same. This Ganesh Utsav, may Bappa bless us with the wisdom to make good financial choices, the patience to stay disciplined, and the prosperity to enjoy the fruits of our efforts. Ganpati Bappa Morya! (The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

Mahashivratri: The wants fast

Writer: Kaustubh Kale
Kaustubh Kale
Feb 14
2 min read

Mahashivratri is associated with discipline, stillness, and control over impulses. Most people interpret fasting as a food ritual. But what if you tried a different kind of fast this year - one that improves your finances and your health? I call it as “Wants Fast” for 30 days.


The Simple Rule

The idea is simple. For one full month, you do not spend money on wants, only needs. Not as punishment, but as a reset - because in personal finance, the biggest damage rarely comes from one big mistake. It comes from small, frequent “leaks” that quietly drain your wealth.


Needs vs Wants

Let us define it clearly. Needs are essentials: groceries, medicines, fuel, rent/EMIs, electricity and phone bills, and truly necessary household and work expenses. Wants are everything else: online shopping “because it was on sale,” impulse café visits, random Swiggy/Zomato orders, unplanned outings, new gadgets/accessories, and subscriptions you do not even use.


Why It Works

This experiment works because impulse spending is emotional, not logical. We buy because we are bored, stressed, tired, or scrolling. A Wants Fast breaks that loop, and you will quickly spot patterns you never noticed before.


The 48-Hour Pause Protocol

To make it practical, follow a few rules. Start with the 48-Hour Pause Protocol. Whenever you feel like buying something non-essential, wait 48 hours. You will be shocked how many “must-haves” disappear in two days.


The One Place Investment Rule

Now here is the key upgrade for this month. Do not just save the money you avoid spending, invest it, and invest it in one place. Pick one instrument only for the entire month: one mutual fund scheme, or one good-quality stock, or one ETF (like a Nifty ETF, for simplicity). Every time you skip a want, take that exact amount (or consolidate it weekly) and invest it into that single chosen instrument.


Why Consolidation Matters

Why this “one place” rule? Because consolidation makes the result visible. When you spread savings across multiple items, you do not feel the impact. But when all that avoided spending accumulates in one mutual fund, one ETF, or one stock, you will physically see how much money was leaking from your lifestyle. Many people underestimate this until they witness the lumpsum created in just 30 days.


The Health Dividend

And yes, there is a health benefit too. A Wants Fast naturally reduces ordering out, late-night snacking triggered by scrolling, and “reward spending” that often comes with sugary drinks and junk food.Money improves, and so does your body.


The 30-Day Audit

At the end of 30 days, do a personal audit: which expenses were pure noise, and which were definitely necessary. Because fasting is not about hunger, it is about control. If you like the concept of Wants Fast, maybe extend it for a month or two more, remember - money saved is money earned. 


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


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