During a recent family visit to a close relative's home, I was treated to some absolutely delicious and exotic non-vegetarian food.
On enquiring further, I learnt that the food had been prepared by a professional who takes orders for small gatherings. I was fortunate to be introduced to her. Let us call her Sarah.
Sarah was in her 40s, a single mother with a 12-year-old daughter and someone bursting with passion and energy.
When she learnt that I was a financial planner, she had several questions relating to money and wealth management.
I knew she was doing reasonably well professionally, but I wanted to understand her financial situation a little better.
She candidly admitted that she was not good at managing money. Several friends had borrowed money from her, and many had little intention of returning it. She was also getting her money managed by a friend who, incidentally, was a teacher!
Sarah had done wonderfully well in her profession but was struggling with managing the money she earned.
This is not an isolated case. Many professionals and successful business owners find themselves in similar situations. They often confuse a healthy income flow with wealth creation.
I explained to her that all of us grow older with time. The passion and energy we have today for our work may not remain the same forever. Health issues, changing circumstances and other unexpected events can affect our ability to earn.
Meanwhile, financial goals such as her daughter's education and her own retirement cannot wait.
It was important for her to separate her passion for work from the responsibility of building long-term wealth with the money she earns.
Most of us are reasonably good at earning an income. However, not everyone has the knowledge, patience or temperament to manage their financial surplus effectively.
This is where professional financial advice can make a meaningful difference. The objective is to protect the money earned through years of hard work and systematically convert today's surplus into long-term wealth, helping one achieve financial freedom.
My message to all passionate professionals and business owners:
- Focus on your profession or business. That is probably where you create the highest value and earn the most.
- Spend quality time with your loved ones and friends. Life is much more than earning money.
- Seek competent professional help to manage and protect your financial surplus and convert it into long-term wealth.
You don't have to be good at everything. Recognise what you are good at and seek help where you need it.
Earn with passion. Protect with prudence. Build wealth with discipline.
If you have missed any of our previous articles, please visit
https://naveenrego.com/blog-grid.php?aW5pdGlhdGl2ZXNfdHlwZV9pZA=MQ
Happy Financial Planning!
Naveen Julian Rego – CFP®
MD & Principal Officer
Naveen Rego Capital
SEBI Registered Investment Adviser
Reg No: INA000019211
BSE Enlistment No: 2178
Disclaimers:
- Investment in the securities market is subject to market risks. Read all related documents before investing.
- Registration granted by SEBI, enlistment as IA with Exchange, and certification from National Institute of Securities Market (NISM) in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
- Financial products recommended by us that are under the jurisdiction of other regulators are beyond the scope of SEBI’s grievance redressal mechanism.
