Hyderabad: "The lockdown has given us many life-changing financial lessons", on a Sunday evening my father added to an ongoing conversation about how he always manages to be a superhero when it comes to money management.
This conversation gave me some life-changing lessons.
1. Identify the thin line between needs and wishes
"I started my career with a salary of Rs. 800 per month with your mother by my side and you in my arms" he said in a deep voice giving me goosebumps.
That day I learned that one should understand the difference between needs and wishes to enjoy life even in hard times.
He said that everyone has to go through a struggling phase where he needs to dump his materialistic wishes for a while and only focus on needs.
This is the mantra for growth I learned from my father that day!
2. Never compromise on health
Although our family income improved after my father's new job the pit of assets was still half empty. With narrow eyes I asked should we cut down our food expenses too, to which he answered that if we compromise with our healthy eating habits today we'll have to pay back double to a doctor.
He never gave away the vaccines a child needs in early years of growth although being so expensive.
He added that good health is a part of the fulfilment of a child's dream.
3. Power of regularity and compounding
Let's put this up with an example from my father that says if you invest Rs. 500 per month for your child in a Systematic Investment Plan (SIP) reaping 12% per annum from his/ her birth till he/ she attains 25 years of age and he/ she continues to do the same up till his/ her retirement the accumulated corpus will be approximately Rs. 5,02,09,428; being the best gift for your child.