Be it our future, education, career goals, or even a holiday trip, we plan them well in advance, don’t we? In fact, we try our best to control everything around us in the best manner. However, the million-dollar question is whether things often pan out exactly as per our plans. One thing we all know is that the future is highly unpredictable. That said, there are certain basic checks that you can perform to understand your readiness to face unexpected scenarios.
Knock! Knock! The unpredictable is here. Are you prepared?
Change is the only thing that is constant. You step into your college during your teenage years with one major objective of living life to the fullest while getting academic qualifications. You may get a few desires fulfilled and few unfulfilled, which you take into your adulthood. Technological advancements and rampant industrialization on one end have changed the face of the world. However, on the other, the world has undergone a number of uncertainties where recessions have become more of a norm than an aberration. People keep losing jobs during these periods of volatility and uncertainty. The bottom line is that you are encountered with numerous unpredictable elements all through your life at different stages. Moreover, these unpredictable elements possess the ability to bring many unpleasant cash flow surprises, which could hurt you if you were unprepared for them.
Well! That said, one thing that is common during your entire metamorphosis is the insatiable will to lead the same lifestyle that always kept you happy, irrespective of what you’re faced with. The big question is whether your savings on its own can totally fund your discernible lifestyle. Thus, investment becomes the BUZZ WORD that could help you shape your financial future much better.
Needs change with time, don’t they?
Your company will better your salary every year. Your new salary will be good to take care of your and your dependant’s needs today. However, take a minute and ask yourself whether your needs would remain the same five years down the line. The answer is NO. If your needs change with time, so must you, since newer needs at higher inflation rates would mean higher cash flows. Therefore, well-planned investment is the best way to tackle your growing needs in an inflationary scenario.
Let’s take a simple example to understand this very important concept. Around five years ago, you would have needed a stopwatch to clock your time you spent on brisk walking. Today, owing to technological advancements, you’d need a pedometer. This gadget will not only tell you the time you spent, but will also tell you the calories you burnt and the distance you covered during your walk. Ten years from now, it could be something else that you’d need. The only common string among all these needs is the increase in costs owing to your increase in needs.
Proper investment planning will help you manage your savings in an effective manner while planning affordability of basic expenses ten years down the line and building the all-important cover for cost escalations owing to inflation. Through proper investment, you will stay under complete financial control for most parts of your life until and after retirement.
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.