“I have opted for financial planning and wanted to invest in mutual funds” – when I told this to my mom; she was as concerned, as one feels towards a medical patient.
Now stop smiling there!
If it reminds you of a famous dialogue-“It happens only in India”, then you are wrong. It’s not just the case in India, it’s worldwide. People are afraid about investing in market either because of their bitter experiences or scarce knowledge.
My mom warned me to either take a money back insurance policy or open a bank FD account for all my needs. She said “it’s more than enough and safe for you to achieve your dreams. It’s risky to invest into market. People, who are already rich, invest into market or mutual funds. Also you are not from finance background, how will you know about products or daily market prices?” I gave my mom a small example and made her understood why and how financial planning at this age is better for me.
How I made my mom understand? What did I exactly say?
Well I asked her few questions related to beauty product.
Mind you! We ladies are always ready to listen about beauty products, whether we are interested in them or not 😉 So is my mother ;), this made things easier for me.
Q1: What you will do if you see a beauty product first time?
Mom:If am interested,I will first check the brand &its credentials.
Me: Similarly,I have done my homework in shortlisting the financial planning firm and their packages or plans. Also I have read their online customer reviews.
Q2: Why will you even go for a beauty product or a salon,which you have never heard before,but promote fantastic results?
Mom: Everyone wants to look beautiful so there is no harm in trying, but they need to start using them early& regularly, with proper guidance from an expert or a salon, such that better results could be seen later.
Yes, at my mum’s age, ladies try to get all those beauty products which will make them look younger. This made my first point simple and acceptable.
Me:Everyone needs money and wants a mantra to get rich quick. Solution is not end products like mutual funds or even stock broking account. Solution is to know your financial standing & Life Goals, i.e. how much more can you save monthly & what are the best available solutions to invest, which will give best returns as per your Life Goals.Financial planners like a Salon lady does that & prepares a blueprint on these solutions & its execution.
Q3: Why you need new beauty product, when you can use haldi (turmeric) and besan (gram flour) to look better. It is more than enough. It will solve your purpose, why new product?
Mom: Yes, the old home remedies may or may not solve the purpose, but it will surely take a longer time.New product will work as supplement to help me get results early and efficient.
Me:Let’s compare haldi and besan, with money back policy and FDs. They may or may not help me achieve all my goals at the time I want. For this I need to plan properly about what will help me and what not.
Q4: How are you so confident that a beauty product will work for you?
Mom:You get steps to follow to achieve results you want.
Me:Similarly, Don’t you think planning and following the given plan helps to achieve goals quite easily.
Q5: How do you know that this beauty product is suitable for you?
Mom:I know about my skin quite nicely. I know which ingredient labels I am comfortable with. If not I can check with my doctor and then can opt for it.
Me: Exactly!!!A financial plan is drafted by finance doctor (aka. financial planner) only after assessing my risk, profile, life goals and investment I have already done.
Q6: Do you look for beauty product prices every day?
Mom:No, usually I ask sales guy to tell me for the proper pricing details. They suggest at what time discounts or prices waiver are expected. If I find prices good to buy, I purchase that product otherwise I wait bit longer to get one.
Me: Bingo, in the same way, I don’t need to keep track on market every day. My financial planner calls me for recommendations and suggestions which help to buy better financial instruments at better returns or I always have an option to research online.
Q7: Don’t you think you are risking your skin with some chemical beauty product?
Mom:I already know whether the ingredients are suitable to my skin. I also keep check on what kind of side effects it will have on me such that I can counter them or opt for different beauty product.
Me: Same goes with financial planning. I can choose investments and financial plan according to my risk taking capabilities. If not satisfied with returns I have option to change them.
Ladies, financial planning is not at all difficult to understand and it is as important as our day to day needs. My mother understood the simplicity in investing in market though it is risky. We have the control to how much risk we should take. So don’t be afraid, opting for financial planning is similar to opting for a beauty product.