Mommies, how many of us are ever-ready to go to the family jeweler’s store? Sometimes planned purchases, sometimes as company to a relative or friend and some impromptu visits often lands us in the jewellery store. And when does a visit translate into a purchase, is something we have all failed to fathom.
What doesn’t help is most jewellers are gifted sellers, plus the charm of yellow metal is too good to resist. Add to that those monthly installments’ schemes perpetually available. A purchase or two is so guaranteed.
Such unplanned visits may return us back with our piece of gold but it also robs us of our small savings. Usually, the purchase is funded partly by accumulated cash from our monthly kharcha and partly by credit. So we empty out our hard saved cash and also come under debt, atleast for a few months.
Secondly, Jewellery is for its emotional value. It can best be used as a gift for momentous occasions like marriag but hardly ever for profits with gold rate appreciation.
Thirdly, the jewellery cost includes making charges which could range between 10-15% above the gold’s value. When you sell it, there is usually 15% deduction again on gold value by the buyer. So effectively you lose out. Let’s illustrate this with an example.
If the gold rate today is Rs. 30000 per 10gms and you buy 10 gms of jewellery, you are charged by conservative estimates some Rs. 350 per gram as making charges. Your total cost here comes to Rs. 33500. Now say gold value appreciates by Rs. 5000 per 10 grams to Rs. 35000 per 10 grams in a few years. You want to sell the same jewellery. While the value is Rs. 35000, the buyer deducts 15% of gold value i.e. 5250. You get Rs. 29750.
What was the realization after a sharp rise in gold price? You had to pay Rs. 33500 but you would get only Rs. 29750.
The idea of this piece is to drive home the point that emptying your savings for jewellery is not the wisest thing to do often. There are certainly better uses of your money.
Hola Momies! First up we have to lay it out..
An W-investor is a combo of:
- Woman investor
- Winning investor
If you are new to investing, then we have a fun checklist here for you to find out if you have the makings of becoming an W-investor. Read on,
● You make a budget every month for expenses: if yes then you have a discipline to identify your cash flow. You can surely graduate to Goal-setting for your family and tread on the path of Financial Planning – a must for becoming an W-investor.
- You have a kitchen garden: or some home plants. When you nurture plants, you learn to have patience because there are no quick spurts, fruition takes time. This is true for investing also. A sense of time horizon is key for an W-investor – you get returns over time.
- You compare prices in supermarket: you are either the kind who compares or you are not; there can’t be a mid way. There’s good news in store if you compare because same buying behavior will also apply to financial products and instruments. Say while purchasing Insurance you have to compare premiums or while opening an FD you have to compare rates offered by banks.
- You like experimenting different things for family: Despite knowing your choices clearly, you like to dabble with different cuisines for family, signing up for new apps, exploring news brands in groceries.. You feel calculated risks are important to experience a variety of things. You have thw truest grain of an W-investor because investing comes with some amount of risk for sure. And no risk is no gain.
- Even if small, you save a sum every month: Be a proud mom for being able to save because most people are not. There are various instruments which can work with small amounts but when consistently done, can payback well. Own the badge of W-investor guilt free because your SIP may just be the smartest investment around.
On a family holiday in US recently, I noticed my sister-in-law engaging her children in money games. Each of her two kids earned themselves $20 as Rakhi allowance. A pre-schooler and a 4th grader then set out to making the best use of their moolah.
Let me add the money was not handed out easily, it was almost labor of love because the kids were made to sit for a small puja followed by an Indian meal (right till plates were empty) and then finishing up some study time. It also came with a rider that screen time, bad behavior, sibling fights will lead to deductions from this amount. Must I add, this was the best possible outcome since we had the calmest kids in company for one whole day.
Now comes the part which pleasantly surprised me. The kids accompanied us to a nearby mall. I left the kids with their mom for their shopping while I decided to lose my way in Macy’s. The disney store, play zone, toy shop were visited one after another.
A couple of hours later we met to grab a bite together and I saw nothing purchased. I was told, “Well, we are doing a recce”. Post eating, my shopping ensued and so did theirs. Atlast, I gave up after having scoured Sears, Dillard’s and a few other stores. I met the kids & mom to find major discussions about latest spiderman costume, pack of cards, barbie set, glitter colors. Soon the money was less for our boy here and loans were sought and sanctioned from sister, but not without conditions of her taking the favourite seat in car on way back home. Somehow plans changed and our man traded the costume with a copy of ‘Diary of a wimpy kid’. Now he was in surplus. Rakhi feeling finally dawned on him and he gifted his sister much sought glitter colors, saving the balance for piggy bank.
At this point, their money was far from over. But my realization had come on the importance and ways to giving children an early start to money habits.
Our first teachers are undoubtedly Moms. There are a thousand things we learn from them – taught and untaught. Here are 4 qualities we imbibed from them and can’t be more thankful for.
- Patience – the biggest virtue of a mother – Wondered sometimes if word patience came from the word Parent 🙂 When the madness is at its height, and you know that you have to slug it out, its perfect time to remember how your Mom would have handled the mayhem. Infinite inspiration descends ofcourse.
- Healthy food choices – Superfoods, high protein diets, organic – these words may have sprung up now but our mothers’ kitchens were taking care of all dietary essentials long before we realized. Thank heavens we are now able to give it to our kids.
- Together is Family – No celebrations are complete without over fave people around. Great that we got this early on and now don’t miss a chance to bring everyone together for our kids.
- Think tomorrow – Living in debt is definitely not a value our moms regarded as one. We saw them maintaining savings stash somewhere to fund a dream or take care of proverbial rainy days or simply for better future. Imbibing from our moms, we ensure there’s always some surplus so that slipping into debt doesn’t become a practice.
There ain’t a mother without dreams for her children. This is true for fathers too but nothing like a mother’s innate love and desire for her kids’ bright future.
Through cinemas, tv commercials, and other media forms, we have grown up picturing a sacrificial mother – Mother India rings a bell? Giving up her own pursuits, subjecting herself to odds at work or around the house yet giving unflinching, unrelenting care is the hallmark of an Indian Mother.
But honestly, other than your love and encouragement, what does your child need to realize those big dreams? The right answer would be – Financial Planning. Have you thought about back of hand calculations of cost of child education? Right from start to higher studies. In future it may touch a few crores. And what about expenses along the way – lifestyle, indulgences for him / her like a holiday, a swanky gadget, special coaching if your child is in performing arts or sports? And Oh wait! The big fat indian wedding is not even getting accounted for. Let’s not get there, as they say.
We know raising kids is by no means economical. Then why not be smart about it and have an investment plan around it? Merely saving up is not sufficient since inflation bites hard into savings. Today’s earnings have to be channelized to meet demands later. Question is, how do you do it? Well it’s nothing short of a scientific process, but an easy one. Through this blog, we will be your friend and guide to make dreams possible. We will give out simple tools, methods and suggestions so you would be able to set your personal & financial goals, make right choices of investments and accomplish your goals.. So you Mom, won’t just be a dreamer, but also an achiever.
A true journey is over when we really cover a distance. This distance will see some discoveries, some additions or some changes along the way. Momeywise is also on a journey, a start of a journey, to be precise; and we are urging fellow women to join us. One thing we are sure about getting out of this journey is Breaking the Mould.
Our financial habits have shaped up due to multiple reasons over time and they die hard. As much as we have wished to get caution in spending and bring discipline in planning or investing, a lot remains desired. However, if we persistently try, we can break the mould & take charge. And much to our surprise, reap benefits too. Here are our top 3 recommended ways:
- Look at the big picture: You may be a habitual saver but ever increasing prices will outgrow your rate of savings and then what? What you need to do is invest and not only save. Your invested money will grow to give you returns over and above inflation.
- Tackle the fear: Do you feel the market movement, calculating RoIs or mutual funds is beyond you? They are complex or boring? Seriously think again. Its nothing to be afraid of. There are professionals who can help, tools that are handy and best of all – transactions that are quick.
- Today is a good day: Age, burgeoning expenses, uncertainties – the more you delay, the more you lose. On the other hand, the longer you give time to investments, the higher the growth. We will start illustrating with simple numbers shortly. But for now, we can’t stress more about starting asap.
It’s easy to not to try. But that’s not us women. We are known to adapt to various roles, most times with zero training. If we decide to break the mould, WE WILL.