"Financial discipline helps you take more risks,'' says Arvind Rao, chartered accountant. "It helps you accumulate enough money to build a corpus that allows you to take risks,'' he explains.
If you are disciplined, you do not really need to depend solely on luck to help your money grow. Rao cities the example of a young client who had approached them when he found himself with a debt of rupees five lakhs and no hope in sight.
`In a span of three years, we were able to move him to a positive networth of Rs 10 lakhs,'' says Rao. Interestingly, this was without any investments in equity or any other assets. ``Pure discipline and savings helped him get his finances in order,'' says Rao.
Discipline ensures that you do the thing you need to do rather than doing the thing you want to do. While `wants' are temporary, `needs' are must haves for the long term. ``Most people do not realise that going forward, after 25-35 years, one would need a corpus of rupees five to six crore to sustain your basic living expenses. Are you saving enough each month to build that corpus?'' point out informed sources. Without discipline and commitment to your goals, you will end up with a nest-egg that does not match your needs.
Discipline is nothing but the ability to control your thoughts, your actions so as to achieve the results you want. For those who are not disciplined, remember discipline can be learnt at any age. Just follow these steps:
Go on a financial diet: Financial discipline is nothing but the art of being able to say `No' to yourself. Remember, discipline is like being on a financial diet for the health of our bank balance.
Avoid temptations: Do not go window shopping if you are an impulsive shopper. ``Before buying that dress or shoe, ask yourself three times, do you really need it or is it wasteful expenditure. If you can survive without it, you should abstain from buying,'' said sources.
Stick to your budget: Draw up a budget of monthly expenses and then make sure you stick to it till you reach your first mile-stone. Reward yourself (moderation is the key word) for being disciplined. Then, get on the discipline track again till you hit the next mile-stone and so on till you achieve your financial goal.
Be regular and patient: A six-pack is not built overnight. Neither is a fat bank balance. You need to be regular not just about savings but also about monitoring your investments. The disciplined person knows that if he continues exercising patiently, even if he does not achieve the six-pack, he will be a healthier person. And rest assured, eventually, he will achieve the six-pack too.
Succcess, it is said, is achieved when preparation meets opportunity. Discipline helps you prepare for life's opportunities and also eventualities. If you are disciplined, regarding your health and wealth, you will be better prepared to face life's googlies.
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