Written by Akhilesh Gupta:
Remember accompanying your mom to the local market? She would haggle with vendors, ensuring she got the best value for every penny. This was the first lesson in personal finance. As Mother’s Day approaches, it’s a perfect time to reflect on the other side of mothers that deserves recognition — their innate ability to manage finances with a blend of wisdom and warmth. While many may perceive moms as the nurturing heart of the family, they often carry the additional role of the savvy financial manager who keeps the household running smoothly.
The Art of Negotiation
Remember the first lesson in personal finance? It is the art of negotiation. The secret to mastering this art lies in understanding the value of what the other person is asking for and being prepared to walk away if the terms are not favourable. In the financial world, this translates to not accepting the first offer that comes your way. Be it an insurance policy, a loan, an investment opportunity, or lower interest rates on credit cards, always explore your options and negotiate the best terms. The potential savings are well worth the effort, and every negotiation is an opportunity to strengthen financial well-being.
Budgeting with Love and Precision
Growing up, moms often displayed a remarkable ability to manage a family’s budget, even if there are additional expenses, without sacrificing essentials. Like skilled negotiators, they meticulously allocated resources, ensuring each penny was utilized wisely. Just as mom would stash away savings in unexpected places like the flour container or a secret corner for emergencies, it’s essential to prioritize building an emergency fund.
Whether it’s through traditional methods like setting aside cash or utilising modern savings accounts, having a financial safety net ensures that unexpected expenses won’t derail your budgeting efforts. This will not only help in controlling spending but also allow us to save and invest wisely.
Investing in the Future
While moms may not always be stock market experts, they understand the importance of investing in the family’s future. Whether it is setting aside funds for education or prioritizing retirement savings, they recognize that investing today means security tomorrow. Likewise, there are numerous life insurance plans tailored to individual needs, providing an additional layer of financial protection.
Just as moms understand the importance of preparing for the future, investors also diversify their resources, ensuring readiness for whatever challenges lie ahead. When managing expenses, it is essential to think beyond the present moment. Prioritizing needs over wants helps in effective budgeting and prevents unnecessary debt. Moreover, investing early helps build wealth compounding over time.
The Power of Resilience
Lastly, the most valuable lesson moms teach about managing expenses is the power of resilience. Being an anchor of the family, they demonstrate the importance of adapting and persevering in the phase of adversity. Whether navigating financial setbacks or embracing frugality during tough times, their resilience serves as a testament of the strength of human spirit. Similarly, in the journey of managing expenses, resilience is key.
As we reflect on the lessons learned from the negotiation prowess of mothers, it becomes evident that their insights extend far beyond the realm of caregiving. Let’s carry forward the legacy of prudent budgeting, astute negotiation, and resilient financial management, not just in honor of Mother’s Day, but as a perpetual tribute to the extraordinary women who shape our lives. Together, let’s embrace these principles and forge a path towards financial stability and prosperity, guided by the timeless wisdom of maternal influence.
(The author is chief investment officer at Aviva India)
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