Whenever I do a lecture on personal finance, I do tell people that the MACROS do not matter, the MICRO matters. The inordinately long time that people spend on the macros, p/e ratio of the market, worrying about QE, Obama, Naendra Modi, Jaitely, etc. is stunning, and completely unnecessary.

YOU NEED TO CONCENTRATE ON THINGS THAT YOU CAN CONTROL – you can control how much to invest, what is your asset allocation, having adequate non equity assets for an emergency, having adequate insurance, writing of the will, documentation of the assets, …etc. etc….

the first few LINES are what you do not need to worry about….

•  taxation views of the FM and the Pm
• short term market moves
• geopolitical risks
• QE, European money printing, Japanese surplus/deficit
• Re, $ and Euro movement
• Your political views
• Your views on a company and its management – if the client can pull of bluffs for long
• Cheap brokerage rates
• the ‘about to happen’ market correction
• MARKET price earning ratio – unless you can reverse engineer the analysis
• Timing the market
• Where are the interest rates headed – anywhere in the world 🙂
• when will the market’s 4-6% move be?

Things which really matter and which is in your control:

• accumulating money TAX FREE over long periods of time
• asset allocation – if you do not have enough money in equities – do not bother.
• concentrating on your career to earn MORE money to INVEST MORE.
• long term relationship with your equity investment manager / broker
• your personal rate of inflation of your expenses
• how much you save (and how much you invest)
• your personal financial reading
• your personal financial understanding
• developing your EQ and Investment Quotient
• developing Positivity and Delayed Gratification
• increasing your investments at least by 3-10% every year

Sure there are more….but this is a good place to start…..

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