Thread by @myfinology

5 Money Lessons from Indian Mythology 🧿

Here's a thread ⤵️

#HappyGuruPurnima

1. Knowledge is Wealth 📚

As per Indian mythology, Laxmi ji – the Goddess of Wealth, stays with a person only if he/she worships Saraswati ji – the Goddess of Knowledge.

It means that if a person has the right knowledge, wealth will follow you.

#wealth

One can become wealthy without knowledge like people who have inherited wealth from parents but he may not sustain it, unless he knows how to manage it.

That’s the reason, we have seen many athletes and celebrities going broke despite earning good money throughout their career.

2. Know the risk, before investing in anything 🌡️

In Mahabharata, while playing he game of dice, Yudhisthir staked his family, kingdom and wealth.

Eventually, he lost everything as he had no prior idea about the game and downside risk attached to it.

#investing

This applies to your investments as well.

If you are a DIY (Do it yourself) investor and don’t know the investment products, costs attached, tax implications, liquidity, risk, etc of an instrument, it’s better to avoid it.

3. Over-diversification leads to doom 🗂️

The five Pandavas prevailed against the Kaurava's clan of 100 brothers in Mahabharata. The reason was their simple structure.

One big reason behind the defeat of Kauravas was the poor management of a big team.

#diversity

Similarly, in investing, it’s quite difficult to manage a portfolio of too many securities compared to a focused portfolio having handful assets.

4. Small steps help you achieve big 🪜

Crossing the sea to reach Lanka was an almost impossible task. But after considerable thought, Shri Ram decided to construct a bridge out of small rocks and stones. The rest is history.

#SriLanka

The key takeaway from this is that big goals could be achieved even when small, seemingly insignificant things are combined just like SIP investments.

With periodic investments at regular intervals, you can create a big fund for your financial goals.

5. Invest Steadily but have an Exit Plan 📉

Abhimanyu entered the Chakravyuh in the Mahabharata battle by himself. But failing to have an Exit strategy, he lost his life.

#business

Similarly, in the investing world, defining your entry and exit strategies is crucial.

This does not mean, you need to time the market levels. But following an investing method in the form of asset allocation and goal-planning can help you maximize your returns.

For more such hacks on saving money and investing, visit: Recipe.finology.in/app/investment… 🎯