How many times have you been told that you need to distinguish between a “need” and a “want”? Innumerable, is my guess. Everyone who has tried to draw a monthly budget would have attempted this classification. Ironically, it is the predominant reason why people find it difficult to live within a budget.
Behavioural finance rests on a simple premise: The biggest risks in investing are embedded in ourselves as decision makers. Biology encourages our brains to take cognitive shortcuts that can cause big problems.
It’s better to be wealthy than rich, even if you’re poor. – Author and NYT columnist, Paul Sullivan
That is the most accurate line I have come across in the context of being wealthy. And we are going to present you with three interesting stories that will help you understand.
Budget 2022 seems to indicate that the government continues on their path of inducing an investment led economic recovery. This budget is, just as the previous one was, very clearly supply-side oriented. The CAPEX outlay has been stepped up to Rs 7.5 lakh crores and no major money transfer into the hands of the masses, through tax cuts or otherwise, has been announced.
If you want to be a great investor, you must resist impulsive actions and understand that the road won’t be straight.