Financial Well Being & Your Behaviour

 

Introduction

Money is the manifestation of all that we give and take. Yet, most of us today, struggle with issues related to money. Availability of debt and the want for a better standard of living have made us all look affluent and abundant. But the twin pressures of paying back the debt and keeping up with the standard of living have eroded the mental peace of most urban salaried class.
The Gallup Survey of 2010 on “Income, health and well-being around the world” identified financial well-being as one of the 5 key components of overall well-being.
The relationship that we have with money is far more nuanced than meets the eye – A ‘lack of worry about Money’ and ‘Financial Security’, were found to have many times more impact than income alone.
In spite of this background, it is worth asking, do we take our relationship with money seriously? Are our money decisions always rational? If not, why?

Do these questions ring a bell?
1. Do your investment decisions get influenced by recommendations given by your ‘wise’ relatives?
2. Do you envisage a fairy tale like marriage? Are you OK to overspend and remain indebted thereafter?
3. You may be wise with money but do you always go for the cheapest loan? How do so many providers exist in that case?
4. Is your life insurance cover at least as much as your home loan?

Learning Outcomes

This course will help you to:
• Understand the various behavioural biases that manifest themselves while taking financial decisions.
• Understand the root of biases in the form of cognitive limitations, emotions and sometimes, just insufficient knowledge.
• Realize that willingness to overcome these biases can be the first step towards financial liberation.
• Decide if you need to hire a financial advisor and make that move if they have to.

All of these will enhance focus and productivity.