Skip to main content

Chaitra Navratri, Ramadan, Lent & Personal Finance

March-April is an amazing period when followers of the three prominent religions across the world observe fast as religious obeisance. While Hindus celebrate Chaitra Navratri, Muslims observe Ramadan & Christians observe the Lent.

Chaitra Navratri signifies the creation of the universe and the beginning of the world and beings by the Goddess Durga or the Adi Shakti. Chaitra means new or bright. The first day of the Chaitra month marks the beginning of the new year as per Hindu calendar. Followers observe fast for nine days and worship nine different forms or incarnations of Goddess Durga during this period.

Ramadan is the month when teachings of the Holy Quran were revealed to Prophet Muhammed by the Allah. Ramadan is derived from Arabic word ‘Ramdh’ which means intensely hot or burning. Worship and devotion during this month burns away the traces of the sin and produces the necessary warmth of the love in man for his creator and fellow beings.

Lent is the period of 40 days which ends on Easter Sunday in the Christian calendar. Beginning on Ash Wednesday, Lent is a season of reflection and preparation before the celebrations of Easter. By observing the 40 days of Lent, Christians replicate Jesus Christ's sacrifice and withdrawal into the desert for 40 days.

Common between the three festivals is the followers of all three faiths observing fast during this period that generally coincides with each other. Fasting as commonly known is the practice of abstaining from all or some kind of foods and drinks as a religious observance. But a much broader definition takes it beyond abstention from food or drinks to the practice self-control through regulating one’s emotions, thoughts and behaviour in the face of temptations, desires and impulses.


Fasting in Personal Finance As we observe fast for our physical detoxification & spiritual upliftment to realize oneself, similarly we must observe fast in our personal finance space in order to achieve our financial goals. We must practice the following as Financial Fasting:

Abstention from temptations – temptations may come in form of lucrative returns, some upfront incentives or even narratives set through news. One should be intelligent enough to distinguish between temptation and logical. Always follow a basic rule - Unless you understand the product don’t invest however tempting it may seem.

Exercising Self Restraint - Similarly in current situation when stock markets are down and there is more noise all around about the gloomy state of world economy than the real news on the same, a temptation is being created to withdraw investments from equity, whereas now is the time to increase a little more exposure to the same to benefit in the long term. Distinguish between news and noise before you make your decision.

Inculcate Discipline – Discipline in expenses is as much important as much is in investment. Inculcating discipline in investment means investing regularly and in products as per financial plan. Similarly for expenses it is very important to budget the expenses and compare them with actual to see deviation and rectify it. And avoid temptations of discount offers or special promotions forcing you in impulsive spending.

Regulate Your Emotions – In personal finance and especially in investing, two emotions of greed and fear pushes most people into losses. Only he who can manage these two emotions makes money. You should be greedy when others are fearful and fearful when others are greedy.

So observe the financial fast and achieve the financial Nirvana this festive season and always.

Happy Festival Investing!

Team InvestmentMitra


Comments

Popular posts from this blog

This Republic Day Write Your Own Financial Constitution

“Constitution is not mere a lawyer’s document, it is a vehicle of life and its spirit is always the spirit of Age” – BR Ambedkar A constitution primarily is a document that details the rights, obligations, privileges, duties and responsibilities of the people living within the corridors of, and leading that country. It details the rule of governance. Without a constitution it will be difficult to live like a civilised society. We would be living like in stone-age where “Might was Right” and jungle raj prevailed all over. Like a country, each individual should also have his or his family’s own financial constitution detailing various financial objectives and the process to achieve those financial objectives, rules that will govern the way its finances will be managed etc. This applies to all individuals without exception and is more popularly known as “Financial Plan”. Like a constitution your financial plan should have a Preamble and different schedules. Preamble -...

Time or Timing – What is more important with Sensex @ 64K

  The Stock Market is the device to transfer wealth from the IMPATIENT to the PATIENT. After swinging in a range for almost one and half years, markets breached their previous peaks and are scaling new one now. Markets have risen by almost over 14% in last three months. Major reason for this sudden rise is the return of FIIs to the Indian stock markets following the fact that India is the fastest growing economy and growing over 6% despite covid, global economic slowdown and geo-political tensions. We invest for long term and everyone knows in the long run markets will go up irrespective of intermittent shocks like scams, dot-com bubble, Lehman crisis, covid or banking troubles in USA etc. Following picture depict the journey of Sensex over 40 years since its inception.   Source; www.thenwsmen.co.in The unfortunate part is we are more concerned about the short term movements of the markets. Every time there is sudden rise or fall in them market we are gripped more by f...

On Cross Roads

“We cannot truly plan, because we do not understand the future- but this is not necessarily a bad news. We could plan while bearing in mind such limitations. It just take guts.”- Taleb:   Propounder of The Black Swan theory. Pessimism that set in March, still persists in our minds. In fact it has deepened with growing number of Covid cases being reported. The largest question ruling our minds today is - Shall we ever be able to overcome it…………..     and if yes by when and how? Have we ever wondered how have the Indian culture survived for so many thousands of years, how come so many Indians who were transported as labourers to many African and European countries centuries ago are now ruling the roost or how come most of the top 20 firms in the world have Indian heading them and so on……….. The only reason to above and many such questions is our “ Ability to Adapt ”. We are fast learner and very quickly adapt to new situation. Indians enjoys six different we...

Markets Tumbling, Recovering – What to do??

Markets Tumbling, Recovering – What to do?? "The best time to plant a tree was 20 years ago. The second best time is now." - Chinese proverb. In times like present most people flock towards safety. Most do it because they don’t know how long this doomsday atmosphere will last, some even feeling like there will be No Tomorrow. But hunger for good returns on our investment never ceases. Kin Hubbard satires, "The safest way to double your money is to fold it over and put it in your pocket." On investment and earning good money from them, Warren Buffet – the legendary investor says, "If I buy a farm, I don't know whether there's going to be drought next year, but I know that there are not going to be 20 straight years of drought, and I know there's not going to be 20 straight years of great rainfall." It is a proven fact that no matter what, in long term best returns come from stock markets only. And as Seth Klarman says, “The stock mar...

Have You Missed Boarding the Bus

  "The market does not trade upon what everybody knows, but upon what those with the best information can foresee" – William Hamilton Russia-Ukraine conflict had clouded the stock markets worldwide giving speculations to the talks like possibilities of third world war, Russia heading for deep financial crisis, energy crisis looming large over Europe etc. With Russia-Ukraine conflict seems getting settled and much to the pleasure of Russia – the Super Power, this has now become a non-player for the markets until some significant deviation happens from the present stance taken by all major countries of the world. Present is the world of instant. We want everything instant and so are our reactions. In the age of internetted social life, dissemination of information is highly fluid. And over 99% of these netizens have mastered the art of forwarding such information without verifying if it’s a news, noise or manipulated agenda of some interested parties.   Most economies in...