I Can—Mrs. Bharati’s Common Money Sense
Have you ever been caught in rains, without an umbrella? That too while on way to a job interview?
It did not seem like it would rain that day. I had my final interview with the Production Head of a TV Channel at 11 a.m. I was all set to reach at least half an hour early, but suddenly it started raining cats and dogs and there was utter chaos on the road. By the time our bus had reached my stop, it was already 10:45 and it was still raining, though not that heavily.
I did not have an umbrella, the office was a good 10 minutes walk (something that had seemed to be a ’just’ 10 minutes walk earlier), it was still drizzling, there was no taxi or rickshaw visible and I had just 15 minutes to get into the interview room from where I was.
There was nothing that I could do but pray. And had this been some film situation, I am sure my prayers would have been answered. The rains would have stopped and a bright sun would have been out in a moment as if it was always there. Or a good-looking hero, with an umbrella and a kind heart would have bailed me out. If nothing else a superman could have surely come to my rescue.
But it was not to be. And that was the reality of ‘life’, at least my life then. All the odds that moment seemed against me and I was left in a totally confused state of mind. What do I do next? Will I make it on time and in a presentable situation? How do I not get wet in this rain and still reach the office on time? Why did I not carry an umbrella? Why did I not have a back-up plan? How could I let such an important interview go by, without giving my best shot?
There were just two options in front of me:
a. wait, either for a rickshaw/taxi or for the rain to stop and reach late with an apology, or b. start walking, overlook the rains, reach on time, though wet.
Both seemed equally scary. Why did I not carry a simple umbrella? Or at least why did I not take a taxi right from my home till the office? These were the two questions that kept haunting me. I knew I had goofed up big time. It was me and not the rains to blame. Rains or no rains, I could have avoided this happening to me. There were so many other interviewees who reached well ahead of time and in their most well-groomed way. Why not me?
The answer is simple, as I look at it now—25 years and a million experiences later; I was not prepared for surprises. I had believed that everything will be just how I expected it to be — normal.
everywhere in life, even in financial planning. Seemingly small financial risks can cause a huge damage. I was practising financial risk management from the beginning of my financial planning exercise. After all I had learnt the ’be safe’ lesson in life the hard way. I would always keep an envelope with some cash in my locker, you know ’just in case’. I had a savings account in my son’s name which had some money that was not to be touched, until an emergency struck. Though, I learned about the formal practice of maintaining an emergency fund many years later.
Of course, insurance just happened. Vehicles came with a compulsory insurance in tow. And my husband’s aunt was a life insurance agent. So thanks to social obligation, both my husband and I had to draw an insurance policy from her, for an amount she suggested. It was only much later did I know that a life insurance cover for me is okay but not necessary, since I am not the main earner for the family. Or that there is a guideline to know how much insurance cover you need.
But if I were to point one financial risk management strategy that is a star in my kitty of strategies, then it has to be ‘the umbrella and the taxi’ strategy.
I mean, it may not be cool to have just one credit card and still at times pay by cash. But it still is much cooler than running from friends to family to manage to pay the mounting credit card bills.
It might not be cool to spend time on managing your money—the income and expenses and to live within means, especially in this world of plastic money. But it is coolest to know that your financial practices today are going to get your family a better life with every passing year and not make it vulnerable to financial risks. An insurance premium might cost some money, but it is certainly worth it, considering that it gets us peace of mind thinking that in case something happens, there is a partner who can share the financial burden.
The umbrella and taxi strategy also keeps me grounded and reminds me of the biggest risks to your financial plans—negligence and overconfidence.