Wednesday, 29 April 2020


“We ignore the opportunities presented before us as we retrospectively regret our past along this ignorant journey”
Mr. Mithavithananda

Those were the words of realization!
Apparently, his load of financial regret was too large that he had to remain Mr. Mithavithananda (Mr. MVA). The only choice left was to be happy with limited money! (Mitha, मित =limited; Vitta, वित्त = money; ānanda,आनन्द  = happiness)
How about you?
Do you dream becoming that Mr. MVA?
If not, it’s important to educate yourself on finance and start planning your finances.


Active financial planning, when plotted against the age of planners gives a beautiful camel hump! The inference is quite obvious: an early age ignorance, often late realization, helplessness (few helpless people) and very late realization in terms of building long term wealth and enjoying the same.

The early age ignorance:
For most of us money flows in our hands from the age of 18 or even younger. It could be a few thousands per year. The source might be pocket money, scholarships, some side hustle with your studies or even a full-time employment. No matter what the source is, ideally this income keeps on growing. Sadly, this is when most of us are least informed about financial planning or are not mature enough to handle money! If you are one of these it’s better, you come out of your ignorance.
The late realization:
For majority of us, the realization of importance of financial planning comes with a marriage, or a few years after marriage when you plan an offspring or for the unluckiest of us during a crisis. Less does anyone think enlightenment can have both happy and horrendous triggers! The synchronous chord of not planning finances wisely in the early days of one’s career strikes here! Adding to the disturbing melody, the stress of the interest filled EMIs of a few unthoughtful expenses made during the early stage of one’s career pass by one’s eyes. The presentation might look dramatic, but, at such a stressful situation most light-hearted people sadly give up. Most of the times finances are painful, even at the epitome of financial pain, one needs to understand and keep in mind that there are ways to work around and come back to a simple decent life. A small glimpse of Bhagavad Gita Verse 38 of chapter 2 can give a lot of philosophical support to handle such a situation!

सुखदु:खे समे कृत्वा लाभालाभौ जयाजयौ |
ततो युद्धाय युज्यस्व नैवं पापमवाप्स्यसि ||
sukha-duḥkhe same kṛitvā lābhālābhau jayājayau
tato yuddhāya yujyasva naivaṁ pāpam avāpsyasi
Chapter 2 Verse 38 – Bhagavad Gita
Which means
Fight for accomplishment of your duty, in doing so, treat alike happiness and distress, loss and gain, victory and defeat. Be focussed towards fulfilling your responsibility and that way you will never incur sin.
How relevant are the ancient philosophies in modern day finance!

Helpless few:
The people in this age group are referred as ‘helpless few’ because irrespective of the knowledge of finance this age group has, it’s hard for one to plan financial freedom at this stage with an aim towards building huge wealth. If one lacks huge income! It’s hard and not impossible! It is hard because of the increased number of dependents and the expenses associated with the dependents. Also, a few responsibilities towards family, friends, and the society. ‘Better late than never!’ could be the best approach!
Very late realization:
This usually happens when one approaches official retirement age. Say in your case,  after draining entire energy for dog years at work, you were waiting for this day of your freedom! With Employee Provident Funds (EPF), retirement bonus and a few small unplanned savings around, imagine yourself doing the math with a pencil, a paper and a calculator!

How hard it is to realize that the numbers don’t match the financial requirements. How hard it is to hide that drop of tear of sorrow behind the haze of your thick spectacles? It’s hard!
It’s hard for me to imagine as I write. It saddens me thinking retirement remains a dream for people because of financial ignorance
The GC Fund: Often a small percentage of the last two types play smart! They forget planning finances for themselves at this stage. Instead, they do the same for their grand Child! That’s simply The Grand Child Fund! Don’t confuse this for any mutual fund scheme out there! It’s a piggy fund/investment created by the grand parents for their grandchild! And guess what it does wonders for the grand child financially.

In addition to financial planning, these people often become great financial advisors for those lucky kids! pouring the knowledge, they gather about finance and making the child financially well-schooled! For such a child the early age ignorance curve of the grandparent just becomes an investment curve! Compounding small capital and silently building wealth!  
Excuse me, even if you weren’t from the last two types, you could still do it to your grandchild!

No matter where you belong on the curve, it’s never late to know about finances and start investments. If not you, it will help your loving grandchild!!


To kindle your thought with some mathematics of camel hump, you could write this distribution with a simple algebraic equation!
This should almost account to the aforesaid financial planning distribution of more than 3 generations!

Undoubtedly they subscribed to three schools of wealth: (a=-1) ‘archaía scholí ploútou’, (a=0) ‘mesaionikí scholí ploútou’, and (a=1) ‘sýnchroni scholí ploútou’. Which means ancient, medieval and modern school of wealth respectively!


Let’s plot them for 3 different conditions, a= -1, a=0, a=+1, and a = 0.25. Well resetting the scale of abscissa (x- axis) from birth to death, considering the life expectancy of the time, and relating it to the graph discussed above, it is possible to emphatically infer how active financial planning is changing over generations.


The Pie Journal  is a blog maintained by a few active investors. The bolg presents wonderful insights into investing. PIE envisions educating and building large community of value investors and has been successfully doing so through it's youtube channel Profit In Equities


I assume the subscribers of The Pie Journal are in a transition from mesaionikí to ‘sýnchroni with the value of ‘a’ somewhere close to 0.25. (Please note: the function is just a funny approximation, as a PIE subscriber, you would be doing far better, even close to a= 1!)
In general, it’ never late to invest. However, choice of instrument to invest requires great care and due diligence. 

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