By Irshad Mushtaq
Contrary to popular belief, having substantial wealth often necessitates needing more advice. The greater the wealth, the higher the stakes, and poor decisions can lead to significant financial losses. Wealth alone does not guarantee wisdom; good judgment is not something money can buy.
Globally, affluent individuals understand the value of professional guidance. They frequently employ teams of consultants and financial experts to safeguard and grow their wealth. The presence of these advisors reflects a recognition that managing significant assets requires more than just capital; it necessitates expertise and strategic planning.
Wealth does not inherently impart common sense, and historical context shows that accumulating money used to be more straightforward due to a lack of competition. In the past, investing in physical assets like showrooms or stores would reliably increase wealth. However, today’s market dynamics are vastly different. The fiercely competitive environment demands that affluent individuals make well-informed decisions, often predicated on professional advice.
In the realm of investments, some individuals let emotions drive their choices or fail to seek professional counsel, overlooking the paramount importance of informed decision-making. Money should be seen as a tool to work for you, rather than something that controls you.
To illustrate, consider a worker earning 600 rupees a day. If they work 20 to 25 days a month, their monthly income ranges between 12,000 to 15,000 rupees, culminating in an annual income of 1.44 to 1.80 lakh rupees. Such earnings come from hard, often physically taxing labor. When managing and growing any amount of money, one must think carefully and strategically.
Assuming an investment yielding a 20% annual return, a capital of 10 lakh rupees is required to generate an annual income of 2 lakh rupees. This calculation underscores the importance of not making investment decisions based solely on emotions. Reliable, data-driven investment strategies often come from professional advice and thorough planning.
In conclusion, financial advice is invaluable, especially for those with significant wealth. Consultation with professionals not only mitigates risks but also ensures the efficient and effective growth of assets. Investing wisely, detached from emotional biases, and prioritizing professional advice can transform money into a powerful tool that works for the individual.
- Learn from the insights of @IrshadMushtag, writer, investor, entrepreneur & Founder of MI Securities! Connect for valuable financial advice at [email protected]
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