Money plays an important role in life , where it gives us a sense of financial security and elevates our freedom to live life according to our desires. There may be divergent views regarding money being not the only factor in giving happiness. However, it can definitely give you sense of freedom to choose the kind of life you want to live. In today’s competitive world, we see people chasing money, but find no time to enjoy life. This has led to rise in cases where people are facing psychological disorders due to stress induced lifestyle perpetuated by a corporate system, where working hours remain overstretched resulting into little or no time to spent quality time with family/friends . As a result, the quality of life remains low leading to lower levels of satisfaction.
India has one of the youngest population in an aging world. By 2021, the median age in India will be just 28, compared to 37 in China and the US, 45 in Western Europe, and 49 in Japan. The recent UN 2021 report on Happiness Index ranks India at 139th position out of 149 countries in the world. Further, it is surprising to see Pakistan (105th) , Bangladesh(101th) and China(84th) are ranked ahead of India. In India, majority of the young workforce is facing stress related disorders , which further has impacted the quality of life leading to low ranking in the happiness index . Also, this can possibly lead to low productivity, thereby resulting into lower economic growth, which can be disastrous for India. However, we can make some basic changes in the way we think about money and happiness. It has reported in various surveys , that beyond a certain threshold of income levels, money has very less impact on the happiness of the people. If we look at Warren Buffet, one of the richest individual in the world with net worth of more than $ 90 Billion can afford all kinds of material comforts in life , but he chooses to live a simple life. He further says money is not the ultimate source of happiness, there is something deeper which every one needs to explore. However , people today buy mansions and fancy cars so as to gain admiration and respect from others. But, people don’t admire the person buying fancy cars, they admire the object and think of themselves buying the object. So, its a fool’s pursuit to engage in such expensive splurges to gain admiration and respect. It would be worthwhile to pursue a life where money gives you freedom to choose what you want, where you want, with whom you want , as long as you want is priceless. So, spending sleepless night to get that extra 3-4% return is unworthy and uncalled for , as it can elevate your stress levels and lower your satisfaction levels.
Investing is freedom
There may be people who are stuck in life , as commitments like paying EMI , allocating expense for child’s education, medical problems leaves them with very little to think about their own life and careers. It can be challenging, but it is not impossible to rewire our lives to live a life where there is sufficient wealth created due to decisions taken at early stages of life. But the question is how to do it? Firstly , I believe in making money by observing behavior of my family and friends , what they like , what products they use , what are their choices and preferences etc. I think this can give you an fair idea about which companies to invest in. Secondly, the concept of investing in industries which you understand and which is within your circle of competence. Because, the educational background you come from and the industry you work in , already gives you an edge from others, as you are a part of the system , and you can well identify winners from your industry in the stock market. Thirdly, focus on not more than 6-7 stocks and don’t worry about overall macroeconomic outlook and its impact on market. This things are temporary in nature, and have complete faith in the growth of India. As India grows , your portfolio will also multiply. Till then, keep a optimistic outlook on life, stay happy, don’t chase money, chase stocks and there is definitely enough space for us to create long term wealth in stock markets which will in turn help you to prioritize time along with enough freedom to choose how to spent it . This is the ultimate source of happiness.
Nikhil 