Financial traps you should avoid
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Dipankar Jakharia
Contd from previous issue
Ultimately, the relationship between money and happiness is similar to the relationship between food and health.
Suppose your body requires 2,000 calories a day. Consuming significantly more than that will not necessarily make you healthier. What matters is not just the quantity of food but also its quality.
Personal finance works in much the same way. You need a certain level of financial resources to meet your needs and achieve peace of mind. Beyond that, the quality of your investments becomes more important than their sheer number.
A portfolio filled with high-quality assets is often more valuable than a larger portfolio cluttered with unnecessary products.
And remember, every asset you own demands attention. The more you accumulate beyond your actual needs, the more time, effort, and mental energy you must devote to managing it. That discussion, however, is perhaps a subject for another day.
Contd from previous issue
Ultimately, the relationship between money and happiness is similar to the relationship between food and health.
Suppose your body requires 2,000 calories a day. Consuming significantly more than that will not necessarily make you healthier. What matters is not just the quantity of food but also its quality.
Personal finance works in much the same way. You need a certain level of financial resources to meet your needs and achieve peace of mind. Beyond that, the quality of your investments becomes more important than their sheer number.
A portfolio filled with high-quality assets is often more valuable than a larger portfolio cluttered with unnecessary products.
And remember, every asset you own demands attention. The more you accumulate beyond your actual needs, the more time, effort, and mental energy you must devote to managing it. That discussion, however, is perhaps a subject for another day.