Financial Knowledge, Learning, Experience & Spirituality

I would like to share my life's learning & experience through this blog with a small comparison of driving a luxury car. Let's assume we wish to drive a luxury car to get the pleasure and comfort of travelling from one place to another. In order to achieve this, we first need to have the financial knowledge.

Only then we will understand the power of saving, investing and compounding wealth. Once we get this financial knowledge and generate decent money without debt, we will own the car we wish to drive. Let's not get into the topic of asset and liability. Some may argue owning a luxury car is a liability. Let's not get into that. Our purpose here is to own a luxury car and have a pleasant and comfortable ride.

Once we own that beautiful and comfortable car. Without learning how to drive we will not be able to actually drive the car. We will only be able to clean and wash the car daily. So, the second important thing is to learn the process. Here, we need to learn how to drive the car. OK, now we own the vehicle and we learned how to drive the vehicle. Third, without fuel we will not be able to drive the car. Experience is like fuel. We need to gain experience to drive the car comfortably. Our hands and legs should operate in an auto pilot mode while driving to enjoy the ride. This can be achieved with experience.

Now, we have the financial knowledge, learning and experience. This is like we own the car, we learned how to drive and we got the fuel filled. Without a proper road, where will we drive the car ?. So, the road is nothing but spirituality or spiritual knowledge. This will keep us away from greed and help us to have a smooth drive. For example, when we have a luxury car, we will try to ride that at high speed. This thinking or action can be avoided when we have the spiritual knowledge. Spirituality has the power to kill the greed and fear. Spirituality will help us to keep ourself calm all the time when practiced appropriately.

So, the 4 important things to maintain and practice in our life to have a smooth ride are Acquiring Financial Knowledge, Continuous Learning, Gaining Experience and Understanding Spirituality.

Have a Great Day

B G Nareshkumar

Over thinking & Fear → Wrong Decisions

Most of the time, we do courageous activity but success is postponed due to lack of patience. Lack of patience is derived from Fear and the fear is the cause of over thinking. This is explained in the picture attached clearly.

Yes, many times we would have observed in our past that what we desired would have been achieved just by having some extra patience. When we deep dive into the negative reaction showed by us, it will give the answer that we thought many unnecessary things in our mind which would have never happened.

I made many mistakes in life when coming to financial decisions due to Over thinking. Decision fatigue ( getting tired of making too many decisions ) is another big criteria which will keep us away from success. How to over come this ?

Taking less decisions as possible and stop over thinking will lead to success. This is said easily but when we are trying to implement this in our life, it is not that easy. This can be achieved by having a clear conviction by analyzing the facts before entering into any activity. By having the proper conviction in mind, that will give us the confidence and will keep us away from over thinking.

Let's say, I'm taking a position in stock market. I have the conviction that in near term, the market is going to fall. How I made this conviction ?, just by analyzing the fact that foreign institutions are selling heavily in the Indian market for past few months and the budget for 2023 is around the corner and new investments will be delayed. By having this conviction I would have sorted the market. For my surprise the market would have gained 200 points or little more than 1% after I have sorted. What to do in this situation ?

Will I book the huge loss and exit the market ? or will hold the position till the expiry and wait for my conviction to come true ?. Due to this 200 points upward movement, there could be many thoughts running in our mind. The only way to gain profit or success in our activity is to have patience and avoid over thinking. It is not wise to change the decision frequently, which will result in decision fatigue and will eventually end up in losses most of the time.

Financial markets across the globe is defined in a way to deal with traders and investors emotions. When we know how to deal with our emotions, that's when we see profits in financial world. The same is applicable in most of the happenings in our life. Let's not over think and make wrong decisions. By avoiding over thinking, fear is destroyed by itself. When the fear is destroyed, we will have great amount of patience and this will lead to success.

Have a Great Day
B G Nareshkumar