The nephew has just begun to earn. The euphoria of the first salary. The joy of living at home and seeing almost the entire money sit warmly in the bank account. Checking every five minutes to see that indeed the balance reads what it did five minutes ago. But he is Gen Z and is eager to do more with his money than his elders were at his age. He’s seen his aunt all over social media. He’s seen her book at airports. He’s heard some good stuff about making your money work for you. So, he comes calling for advice. People in the financial advisory sector will understand what a moment this is—your own extended family is the absolute last to take you seriously! Evidence of this is in the investments he’s already made, starting SIPs three months ago in a few funds, taking advice from somebody he was referred to.
These are good funds, but there are already two problems. One, the funds don’t have a story to tell. They are just good funds that some well-wisher put him into, they are not aimed at solving any of his concerns. Two, he is using a platform that only gives the option of a regular plan. Nephew is getting his advice for free and is then paying the platform trail commissions for the rest of his life on a growing portfolio for simply being the shop front that vends.
I am reading a really cool book. When: The Scientific Secrets of Perfect Timing by Daniel H. Pink is a book about timing. Pink wants to turn timing from art to science and introduce a new genre in book titles, from ‘how to’ to ‘when to’. Pink says it matters when in the day we do things because his research shows that the human race has energy rhythms that are consistent across the world. Most people work better in the morning, hit an energy trough by about 2 pm and then recover by about 3 or 3:30 and then hit much higher levels by evening and 9 pm. What’s so great about that you may be asking? Well, for one, his work finds that scheduling a doctor’s appointment in the morning than in the afternoon may give you better care. Having your parole hearing in the morning carries a higher chance of being set free than in the afternoon. His advice: figure out your energy rhythms and then focus on your most productive and meaningful work in the time you know you are most effective. Leave routine tasks like admin work for the office day energy slump time.
Expense Account, Mint
There is a little bit of a child in all of us. We build expectations about an event and become so attached to these that they become the reality ahead of the event. The final event then has no option but to disappoint. After discounting the huge build-up to the Budget that the media and the market created and looking at the exercise as a vision statement for the next five years, I find that it works very well.
I like it because it is a goal-oriented Budget—not in the way that the market would have liked with specific number-driven targets but more as a vision statement.