In this article I am going to share the thoughts of great spiritual master Sant Kabir Das (15th-century Indian mystic poet and saint) & Rahim Das.
1. Make Your Portfolio Meaningful
*साधु ऐसा चाहिए, जैसा सूप सुभाय ।*
*सार – सार को गहि रहै, थोथा देई उड़ाय ।।*
When the market is on the upswing, i.e. when everybody on the street is over optimistic. After falling prey to greed, people realise that they have accumulated many stocks or instruments which are of no use and by that time the market also tanks. At this hour, they need an advisor who can clean up their portfolio and align it to their needs and help them to get rid of bad investments they made following the herd.It is very important to have a trustworthy, knowledgeable and competent advisor.
2. Patience is the key
*धीरे–धीरे रे मना, धीरे सब कुछ होय ।*
*माली सीचे सौ घड़ा, ॠतु आए फल होय II*
This is one of the most important aspects of successful investing. When one is investing in equity markets or equity mutual funds one needs to have a long-term horizon. By pouring a lot of water on a plant at one go, you can’t expect fruits immediately, it will come only in the season, till that time you will have to keep watering it regularly. Systematic Investment Plan (SIP) is a good way of investing for retail investors. Not only does it inculcate the habit of regular investing, it also makes an investor more disciplined.
3. Plan for the retirement
*माँगन मरण समान है, मित माँगो कोई भीख ।*
*माँगन से तो मरना भला, यह सतगुरु की सीख II*
The most ignored financial goal amongst Indians is retirement. People don’t realise the importance it should be given. Most old people they see around them today are pensioners and not too dependent on their children. This will not be the case, going forward as more and more people are forced to or choose to retire before the age of 50. This results in another 30 years of retirement. Secondly, the inflation in medical expenses is very high, therefore, it is advisable to plan for retirement to avoid dependency on others. As Kabir says, “Being dependent on others is equal to dying; if not physically then mentally.
4. On choosing the right advisor
*साधु–ऐसा चाहिए, जाका पूरा मंग ।*
*विपत्ति पड़े छाड़ै नही, चढ़े चौगुना रंग ।।*
What kind of advisor does an investor need? One who can hand hold the investor during tough emotional and financial situations. Further, a financial advisor needs to be more engaged with the investor during tough times. The advisor’s efforts during bad times should be four times more than on normal days.
5. Advisor- Friend, philosopher, and guide
*साधु आवत देखिकर, हँसी हमारी देह ।*
*माथा का ग्रह उतरा, नैनन बढ़ा सनेह ।।*
An advisor should be dependable. A successful financial advisor often becomes a sounding board for his clients. An advisor is a good coach, a guide, and a great empathiser. It is assumed that a good advisor is like a financial doctor. In fact, a good advisor plays a much bigger role than a mere financial doctor. Reading a client fact sheet is more important than reading the fund fact sheet.
6. Attaining financial freedom enables you to pursue your passions and live a meaningful life
*चाह मिटी, चिंता मिटी मनवा बेपरवाह ।*
*जिसको कुछ नहीं चाहिए वह शहनशाह II*
The investor should try to achieve a state of financial freedom. This is a state wherein one feels like a real king. When someone doesn’t have any more dreams to achieve, there is no peer pressure. One can live life the way one wants to. Such people feel like ‘The true King’.
It’s always better to focus on the goals of life and enjoy every bit of it. People who plan their financial lives well generally start planning very early.
7. Do not procrastinate
*काल करे सो आज कर, आज करे सो अब ।*
*पल में प्रलय होएगी, बहुरि करेगा कब ।।*
When it comes to taking action on health and wealth, people tend to procrastinate and postpone it for tomorrow, which very often never comes. Sant Kabir says finish tomorrows work today and today’s work at the current moment because one doesn’t know when one will fall on one’s deathbed. We are born with a purpose. Let us not waste any opportunity procrastinating.