If someone asked ‘if you had money, what would you do? 1 crore?’ Like most, you’ll probably end up listing everything you’d like to buy or experience. How many of you thought of ‘savings’ as your first option? Not many, I’m sure!

Assuming that you’re one of those rare people who previously thought about saving, all I’ll say is, you’re one step wiser than the rest. Now I am also assuming that you are probably planning to invest this money so that it can generate more wealth. Finally. And I completely agree with you here.

However, which investment option to choose? You are probably planning to consult your friend or relative. Well, at least that’s what one of my 45 year old client was doing. Despite substantial income and a good investment portfolio, he was not sure whether he had enough money for his future goals.

Like most new investors, he had invested in 2 properties and was now unable to liquidate them and found himself trapped. It is simple, if the house is bought for living, it is not a form of investment. Because tomorrow it will never happen that you will sell your house to pay for your child’s education or your retirement etc. Second, it won’t help you even in an emergency.

This client had a large portfolio, but there was no discipline or strategy involved. His investments were scattered, and the media was driven. Most people lose money because of investor performance rather than investment performance. This is when they make reckless, unplanned financial moves that do more harm to them than to secure them. To help you identify the red flags, here are three examples to make sure your investment decision is reckless:

• When we act on information provided by the media or our friends and colleagues over dinner and drinks. Here, I must add that friends, whether they have your best interests at heart, are not experts and are doing things on their own by trial and error!
• When we only think about returns and we just follow the herd without thinking about what we really want or what our goals are. Can Swarm predict the future? When you follow the flow of people, can you be sure that your investments will work for your goals? My point is – if your goals are your priority and your plans are aligned to accomplish them, why shift the focus to returns and do all the work. Back and forth and messy transactions?
• When we make additional investments for tax saving or compliance purposes. Most of us think it has nothing to do with our goals, but aren’t we squandering our limited wealth by doing so? You end up buying only the products that the seller sells to you, making it sound as the most essential product to you, until the next product arrives. Such extravagance drains your resources and creates obstacles in your future.

The simplest mantra towards creating a healthy investment journey is to sit down, list your financial aspirations carefully, sort them according to their timelines, align your investments with these goals and patiently plan your investments over time. Let it grow All you have to do is trust your financial assets and let them be.

The worst thing you can do to your investments is to invest after the recent good phase and withdraw them after the bad phase of returns. You don’t label a stranger as good after a pleasant company, and you don’t label your neighbor as bad after a fleetingly unpleasant situation. You have to give relationships time to blossom to their true potential. Similarly, you have to nurture your investments and let them serve their purpose at their appointed time.

To quote Warren Buffett here “Successful investing takes time, discipline, and patience. No matter how much talent or effort, some things just take time.” With that prudent wisdom, I suggest you to think about it. How are you handling your investments. Here’s hoping you treat your money well and it treats you even better!

Views are personal: The author is Ashish Modani – Founder of SLA Finserve Pvt Ltd from Jaipur

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