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By:

Kaustubh Kale

10 September 2024 at 11:37:15 pm

Nine Financial Tips for a Prosperous Navratri

As Navratri draws to a close, I wish you and your family happiness, prosperity, and continued success. Festivals are a time of celebration, but they also serve as a valuable reminder to reflect on our financial habits and strengthen our financial discipline. In the spirit of the nine days of Navratri, here are nine essential financial tips to help you stay on track with your financial goals and make your journey towards financial freedom smoother and more secure. Build an Emergency Fund Make...

Nine Financial Tips for a Prosperous Navratri

As Navratri draws to a close, I wish you and your family happiness, prosperity, and continued success. Festivals are a time of celebration, but they also serve as a valuable reminder to reflect on our financial habits and strengthen our financial discipline. In the spirit of the nine days of Navratri, here are nine essential financial tips to help you stay on track with your financial goals and make your journey towards financial freedom smoother and more secure. Build an Emergency Fund Make sure you have at least six months of living expenses saved in a bank fixed deposit or a debt mutual fund. This reserve will serve as your emergency fund for unforeseen situations and ensures you are prepared for any rainy days. Review Your Asset Allocation Revisit your investments to ensure they align with your goals. For short-term goals within three years, bank fixed deposits, recurring deposits, or debt mutual funds are appropriate. For long-term goals beyond three years, a diversified combination of hybrid/equity mutual funds, direct equities, and gold should be preferred. Do Sufficient SIPs Systematic Investment Plans (SIPs) are the backbone of disciplined investing. At least 25-30 percent of your in-hand monthly income should ideally be invested through SIPs in mutual funds, equities, and gold. This consistent approach will steadily build wealth over time. Make Lumpsum Investments Along with SIPs, voluntary lumpsum contributions into long-term assets whenever you have surplus funds can accelerate wealth creation. Even occasional lumpsum additions make a significant difference to the overall corpus. Increase Your SIPs Annually As your income increases, make sure your investments grow as well. Increasing your SIP amounts every year helps your wealth stay in line with inflation and your rising lifestyle needs. Increase your SIPs yearly and anchor them to at least 30 percent of your monthly income. Stay Invested Remain invested until your financial goals are achieved. Avoid redeeming investments unnecessarily. Frequent withdrawals disrupt compounding. If liquidity is required, consider taking an overdraft loan against your investments rather than breaking them prematurely. Health Insurance Safeguard your family with adequate health insurance. Opt for a minimum cover of 25 lakhs per family member with comprehensive features. Remember that relying only on employer-provided insurance is risky. Independent health insurance is essential. Term Life Insurance Protect your loved ones with a pure term life insurance policy. Ensure a cover of at least ten times your annual income, along with provisions for any outstanding loans. Stay away from mixing insurance with investments. A simple term plan is the most effective solution. Consult a Financial Advisor A full-time, well-qualified financial advisor can simplify your financial journey. Professional guidance ensures disciplined planning, correct product selection, and proper execution of your financial strategy. May this festive season bring abundance and lasting financial peace. (The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

The Natural Beauty of “I Don’t Know”

Jun 17
4 min read

In an age of instant opinions and algorithmic certainty, intellectual honesty begins by admitting what we do not know.

AI generated image
AI generated image

William Beebe (1877–1962), an American naturalist and explorer, while emphasizing intellectual honesty and scientific temper wrote:


“These words should be ready for instant use … — ‘I don’t know.’”


Going beyond Anglo-references and coming back to our homegrown geniuses, so did Bengal-based chemist, entrepreneur, and literary genius Rajshekhar Basu (awarded the Padma Bhushan in 1956). In his 1951 essay, Mr Scientific Mechanical Brain (as his elder brother Shahi Shekhar used to call him), described “scientific temper” as:


“The attempt to determine truth in all matters with the same care and freedom from prejudice that a scientist exercises during research.”


And that, as per Beebe, starts by acknowledging, prima facie, what we do not have answers to, and the benefits of this mindset far outweigh its drawbacks, if any. After all, a solution to a problem starts by acknowledging that there is a problem. Lucky for us, our Constitution (Article 51A) also calls for its expansion. Scientific temper in India, according to our founding traditions, is the method of categorically applying a scientific and logical thought process to our everyday lives. It’s a mind-state! But have we been able to uphold our founding traditions? I doubt so!


“Know-It-All” Fallacy

Our reluctance towards scientific temper partially spans what I call the “know-it-all fallacy space”. We somehow have a strange inclination to blindly believe general acts of vague referencing without cross-checking. A glimpse into history shows that most established superstitions began in exactly this way.


If a ‘WhatsApp uncle’ (a professor at WhatsApp University) suggests a medicine and I blindly take it, neither of us truly knows whether I might suffer an allergic reaction or long-term side effects. According to pre-COVID data (2020), the rate of self-prescribed medication in India was already significantly high at 19 percent, and unsurprisingly, it rose to over 25 percent post-COVID. Among these, around 75 percent involve drugs like Vitamin C and azithromycin.


The second tendency involves people who do not rely on hearsay and instead turn to ChatGPT or Google. After all, why would we listen to random people when we have the internet? But the problem lies elsewhere.


When we search for something, we do so using only a handful of keywords based on our limited understanding. Worse still, search algorithms often present a few highlighted lines from selected websites, which many people accept as unquestionable truth. Even those who dig deeper often skim abstracts and results from academic articles without understanding the limitations of those studies.


We fail to realize that a scientific paper addresses only specific questions or experiments—it does not provide universal truths. Its conclusions depend on methodology, experimental conditions, and sometimes even bias. In scientific terms, these issues are called insufficient sample size and biased outcomes. Moreover, economic factors influence which search results appear first. Our exploration is rarely objective. So, absorbing and disseminating such ambiguity is at the heart of this problem.


This phenomenon reminds me of Postman’s famous experiment. Neil Postman, best known for his cultural criticism of technology’s expanding authority, used to casually offer colleagues fabricated “scientific findings” to observe whether they would challenge them. He noted that most would accept the claims without hesitation, provided they carried the faint scent of expertise or aligned with the ambient logic of modern life. From this, Postman argues that our basic habits of belief have not changed since the Middle Ages: then, people deferred to the authority of religion, and now they defer to the authority of technology. This continuity, he suggests, is what allows a culture—in which technological authority has eroded the very frameworks that once helped us distinguish the plausible from the merely persuasive—to degrade.


Ultimately, what emerges is this: our surrender to tech-referencing, or even our desire to momentarily establish ourselves within social circles - our know-it-all micro-ego - sways us from objectivity. We fear being perceived as ignorant. As a result, we give answers even when unsure or make generalizations without sufficient evidence. In doing so, we risk wasting time or even causing harm, both to ourselves and to others.


Imagine you asking me a question I have no answer to and I begin my answer by saying, “I don’t know.”


Building Trust

Firstly, even if you don’t get the answer you wanted, you will sense honesty. You will know that when I do know something, I will provide accurate information. This builds trust - a rare commodity in our society today. During my fourteen years in Europe, I have repeatedly seen how this openness helps strengthen social trust, both in personal and professional circles.


Secondly, saying “I don’t know” frees the responder from the burden of appearing intelligent. It removes the pressure of an imaginary standard of knowledge. From there begins the true journey of learning. The mind opens up - free to explore, question, and discover.


Moreover, when both the questioner and the responder acknowledge uncertainty, they ascend to a level playing field. The false guru-shishya bubble vanishes. This shared space of curiosity can even build friendship. In an increasingly alienated world, what could be more beautiful than two people searching for answers together?


So, let us say “I don’t know.” This “know-it-all” problem has far broader social consequences across our country. We are forgetting how to question. Those who seek to control us, regardless of ideology, fear questioning minds the most. Our ability to ask questions is our greatest strength.


The phrase “I don’t know” is the very foundation of curiosity and inquiry.


(The writer is a Lead Process Engineer with GE HealthCare in France and a columnist with four books to his credit. Views personal.)

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