9 Key Financial Lessons You Can Learn This Navratri!
Listen to 9 Key Financial Lessons You Can Learn This Navratri!
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Indian festivals represent a unique combination of tradition, celebration, and can even equip us with life lessons. The ongoing celebration of Navratri meaning 'nine nights' is an auspicious festival that's celebrated differently across India, but it essentially signifies how good triumphs over evil. For many of you, it is a time of religious reflection and fasting; for others, it is a time for dancing 'Garba-dandiya' and feasting.
These nine days are dedicated to the nine avatars of the goddess Durga that she had morphed into while battling the demon Mahishasura. Each Navdurga avatar has attributes that we can imbibe and derive life lessons from, which may guide us towards learning how to survive different facets of life, including financial challenges.
In this article, we will explore the different characteristics of Navdurga and the 9 key financial lessons we can learn this Navratri:
1. Shailputri - Set S.M.A.R.T financial goals
Shailputri was the daughter of Himalayas; she is also referred to as Shakti, Parvati, and Hemavati. Shailputri embodies dedication, strength, and spiritual awakening. The investment analogy we can draw from this avatar is recognising the dedication and discipline it takes to create wealth; the true value of financial literacy; and awakening to your aspirations, goals, circumstances, and potential for a better life.
First, evaluate your monthly financial cash flows with the help of a budgeting app or exercise to understand your income/s, expenses, and savings. The next step is to set your financial goals as per the S.M.A.R.T. methodology. Begin by defining your investment objective and classifying your dreams and aspirations into short-term, medium-term, and long-term financial goals. Gain the financial know-how and skills necessary to be able to construct a financial portfolio and execute your personalised financial plan.
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2. Brahmcharini - Developing discipline
Brahmcharini embodies the power of mind over matter, rising above ephemeral wants, worldly desires, achieving tranquillity, and effortless concentration. This avatar of the goddess teaches us the virtue of delayed gratification, how to rise above behavioural biases and overcome greed and fear, and shows us how to develop mental discipline.
Based on your financial plan, you can chart out an effective investment strategy that can achieve optimal risk-adjusted returns. And if you aim to handle your hard-earned money prudently, developing mental discipline is an essential factor.
When it comes to investing, discipline involves spending frugally, delayed gratification, saving and investing regularly, reviewing your portfolio timely, and building immunity against market noise and nuances. By embodying the virtues of Bramhcharni, you will be able to overcome your irrational fears and greed, you will avoid churning your investments frequently based on the short-term highs and lows in the market and/or on emotional/behavioural biases and, maintain your mental composure in all market conditions.
3. Chandraghanta - Stay focused on your wealth creation journey
The avatar Chandraghanta embodies clarity, vigilance, being ever prepared to battle any crisis, and divine foresight. Though your aim is to create a robust financial plan and stay focused on your investment strategy, several factors can alter the course of your wealth creation journey. For instance, shifts in global macroeconomics and Indian market conditions can impact the performance of your investment portfolio.
You can safeguard your investments by being vigilant, staying informed about global and national events, updated about financial news and reforms, and understanding how these might impact your financial situation.
When you invest in worthy investment avenues that can generate risk- adjusted returns for the long term, it is important to stay focused and be patient during minor turbulences in the markets.
4. Khushmanda - Effective financial planning
The avatar Khushmanda is revered as the primordial creator, the one who brought light into the dark world. Similarly, by symbolizing the qualities of the fourth incarnation of goddess durga, you need to create an effective financial plan that draws light on your financial management. And allows a better control of your finances to create a wealthy corpus for a secure financial future.
Your financial plan is the path leading you towards achieving your wealth creation goals. Your financial plan must include goal setting, managing debt, investment planning, portfolio review, etc. It is essential to create a robust financial plan that could survive various market phases.
Financial planning is about strategically managing and investing your money to achieve your envisioned financial goals. An effective financial plan helps you to manage your finances in challenging times and get rid of your debt burden if any. Alternatively, you may look for opportunities or invest in businesses, to build more assets and generate a strong flow of income.
5. Skandmata - Make informed financial decisions
Skandmata embodies confluence of wisdom and execution; this avatar of the goddess Durga refers to the mother of Lord Skanda or Lord Kartikeya, who destroyed the demon Tarkasura. The goddess is known to take action against the evil and make wise decisions. The financial lesson you could learn is how to make informed financial decisions with adequate knowledge.
In the investment world, it is a crucial step to make worthy unbiased financial decisions. Executing those informed investment decisions in a timely manner will enable you to have a better control over your investments and avoid any negative impact on your investment portfolio.
While investing, be mindful of the investment avenues and asset mix, recognise your risk appetite and investment horizon. Don't take impulsive investment decisions, use your prudence to filter the financial and market information for a better understanding before taking action. Avoid making influential decisions based on any behavioural biases such as the herd mentality bias.
6. Katyayini - Empower yourself with financial knowledge
The avatar Katyayini is fearsome yet benevolent and represents the goddess' powerful vision and nothing misses her eye. The goddess uses her powers to slay the demon Mahisha, you may also empower yourself with the weapon of financial knowledge.
Being financially literate assists you to deal with dynamic market conditions, navigate through the volatile markets and survive the financial challenges in life. Financial knowledge helps you stay updated with financial developments and information that may affect your investments.
It is crucial for every individual to enhance their financial knowledge to have a better control over your finances and make informed financial decisions. You will be able to understand all these 9 key financial lessons much better if you are financially literate. In addition, financial literacy can help you become your own financial planner and a financial guardian for your family.
7. Kaalratri - Review and Rebalance your portfolio
Kaalratri is the fiercest of the nine forms and is considered the destroyer of all evils; this avatar leaves no stone unturned while eliminating the negative forces. Similarly, you may be required to eliminate the negatives that affect your financial life. The financial lessons you can draw here is you should remove the unworthy and underperforming investments that weakens the performance of your portfolio.
You see, with changes in economic activities and market conditions, the portfolio performance may fluctuate and thus your investments need to be reviewed timely. You must conduct a periodic review of your investment portfolio to evaluate if your investment are providing the desired results. It is essential to analyse the underperforming assets on various quantitative and qualitative parameters.
When necessary, you may need to rebalance your portfolio and invest in an alternative investment instrument that offers better risk-adjusted returns. So remove non-performers from your portfolio and avoid falling prey to emotional biases when eliminating the underperforming assets.
8. Mahagauri - Reduce your debts
Mahagauri is the incarnation of the goddess who purges devotees' sins and blesses you. This avatar symbolizes of starting again on a clean slate. You may have taken some bad financial decisions in the past, which created a debt burden. However, the goddess enlightens you with the grace so that you can always learn from your mistakes and resolve them.
Having a debt is not wrong, you may have financial requirements to fulfil, and taking a loan for purposes such as buying a property, for higher education needs, etc. is perfectly fine. All of us seek a loan at some point in time or other, but if it leads to a debt burden, it will affect your financial well-being.
Therefore, repaying the debt obligation is equally important; try to maintain a debt-to-income ratio below 40% to avoid any debt burden. Maintain a respectable credit score of at least 750 and above at most times. Your Credit score reflects your credit behaviour and creditworthiness; it defines your ability to borrow loans in future.
9. Sidhidatri - Prepare for unforeseeable events
Sidhidatri is the bestower of 'Sidhi' or all well-being; this ninth form of the goddess is known to bless her worshippers with perpetual wisdom. This incarnation of the goddess signifies with her blessings well-being for all, especially in tough times when certain situations are out of your control.
Consequently, life is challenging and it throws curveballs at us when we least expect it. Situations like loss of job, hospitalization, unexpected increase in your child's school fees, etc., can arise at any moment. Unforeseeable events like the COVID-19 pandemic crisis can leave you in a financial crunch.
Hence, to maintain your financial well-being, you must be well prepared with your finances to survive any unforeseeable events, like market crashes and the COVID-19 pandemic. Amid the uncertainties, there are various factors to be considered; primarily, adequate life and health insurance cover. It will help your family to fulfil their financial requirements in your absence.
In addition, with the gift of foresight, you can build a contingency plan and be prepared for any financial exigency or loss. In other words, it is crucial to set money aside in a savings account for an emergency fund. Ideally, this contingency fund should be sufficient to cover expenses for 18-24 months, with monthly expenses including EMIs.
When it comes to investments, the equity market is volatile in nature and such uncertain events may create a turbulence in your portfolio. Hence, if you have worked out your financial plan and allocated your investment under an 'all-weather' portfolio that can weather any storm, you will be able to achieve your envisioned financial goals and survive the tides of uncertainties.
So this Navratri festival, we invite you to learn these 9 key financial lessons from the goddess. This will be a valuable addition to your celebration plans with your loved ones. Just like you enjoy following the part of dressing up in nine different colours during Navratri, aim to follow these 9 key financial lessons for your financial well-being.
On Dussehra or Vijayadashami, one of the most auspicious days, which comes after the nine days of celebrating Navratri, commemorates the victory of goddess Durga over the evil after nine days of battle and ushers in bright, positive new beginnings. On this occasion, start a new journey with a robust financial plan and focus on your wealth creation to secure your financial future.
Happy Navratri!
Warm Regards,
Mitali Dhoke
Jr. Research Analyst
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