“Paise ka nahi, plan ka khel hai!”

(It’s not about money, it’s about the plan!)

Meet Raj and Priya

Raj was always the smartest guy in the room when it came to investments. At family weddings and Diwali parties, he’d regale everyone with stories of his latest stock picks and cryptocurrency discoveries with the enthusiasm of Shah Rukh Khan delivering a dramatic monologue. His phone was an extension of his hand, constantly checking market movements on Dalal Street and reading financial news. His goal was simple: maximum returns, whatever it took.

Priya, on the other hand, rarely talked about her investments. When asked, she’d smile and say, “Main apne plan pe chal rahi hoon” (I’m just following my plan). No fancy trading apps on her phone, no constant market updates. She had a simple spreadsheet tracking her progress toward specific life goals – a 3BHK apartment in the suburbs, her children’s education, and a comfortable retirement with enough to travel annually.

Both started their financial journeys with similar IT jobs in Bangalore and comparable salaries. But ten years later, their kahaaniyan (stories) couldn’t be more different.

The Race Begins

Raj jumped into the market with the enthusiasm of Ranveer Singh, researching the hottest sectors and following investment gurus on YouTube. He was convinced that finding the next Reliance or Infosys was the key to wealth. His portfolio was a constantly shifting collection of promising tech stocks, small-cap funds, and whatever asset class was performing like a box office hit that quarter.

“Arre yaar, did you see the returns on this crypto fund?” he’d ask Priya during their coffee breaks. “I made 20% in three weeks. That’s more than your boring mutual funds will make in a year! Picture abhi baaki hai mere dost!”

Priya would nod politely. Her approach was different. She’d sat down with a notepad and asked herself the big questions:

• What do I want my money to do for me?
• When will I need it?
• How much risk can I truly tolerate?

From these questions came specific goals:

• ₹30 lakhs for a house down payment in 5 years
• ₹80 lakhs for each child’s education fund in 15-20 years
• ₹3 crore for retirement in 30 years

With these targets in mind, she built a simple, diversified portfolio of low-cost index funds and carefully selected mutual funds with appropriate risk levels for each goal. Then she set up automatic SIPs and rarely looked at her accounts.

The Market Storms: Toofan Aaya Hai!

The first major market correction hit when demonetization shook the Indian economy. Raj was devastated. His small-cap heavy portfolio dropped 35% in a month. He panicked and sold most of his positions, convinced things would get worse.

“Main wapas aaunga jab market theek ho jayega,” (I’ll get back in when things stabilize) he told Priya over cutting chai. “I can’t afford to lose any more. Mere paas ab time hai!”

Priya’s portfolio had also taken a hit, dropping about 15%. But instead of selling, she increased her SIPs slightly. “My house down payment fund is mostly in debt funds and barely moved,” she explained. “And my retirement is decades away – this drop just means I’m buying more units at a discount. Kabhi kabhi jeetne ke liye kuch haarna padta hai.” (Sometimes you have to lose something to win).

When the market recovered six months later, Raj was still on the sidelines, paralyzed by uncertainty like a hero waiting for the right background music to make his entry. He’d missed most of the recovery by the time he felt comfortable investing again.

The Shiny Distractions: Naya Zamana, Naya Trend

As the years went by, Raj’s attention was constantly pulled by the latest investment trends. He chased the real estate boom in Tier 2 cities, then pivoted to pharma stocks during the pandemic, then renewable energy. Each shift required selling his current positions (often at a loss) to free up capital for the new opportunity.

“Tumhara loss ho raha hai,” (You’re missing out) he’d tell Priya when one of his picks was up 50%. He never mentioned the three others that were down 30%.

Priya stuck to her plan through bull and bear markets alike. When friends asked about her “investment strategy,” she’d correct them: “Mera koi investment strategy nahi hai. Mere financial goals hain with investment components.” (I don’t have an investment strategy. I have financial goals with investment components.)

Her portfolio was boring by Bollywood standards – a mix of index funds, blue-chip stocks, and bonds that gradually became more conservative as each goal’s deadline approached. No exciting plot twists, just steady progress like a classic film that stands the test of time.

The Power of Knowing Your “Kyun” (Why)

What Priya understood that Raj didn’t was the psychological power of purpose. When market volatility struck, she didn’t panic because she knew exactly why she was investing each rupee. Her investments weren’t abstract numbers on a screen but concrete goals with emotional significance.

Raj was investing to make money, which is like saying you’re eating to consume calories. Technically true, but missing the deeper purpose. Without specific goals, he had no framework to guide his decisions during market turmoil except fear and greed – poor directors for any financial blockbuster.

“The stock market is a device for transferring money from the impatient to the patient.”

– Warren Buffett

In India, we might say, “Sabr ka phal meetha hota hai” (Patience bears sweet fruit).

The Finale: Happily Ever After?

Ten years later, Raj’s portfolio had experienced wild swings but sat roughly 30% above his total contributions. Not terrible, but far below what the overall market had returned during that period. More importantly, he still had no clear idea of when he could retire or how much he needed. His financial story was like a movie with amazing action sequences but no coherent plot.

Priya had reached her house down payment goal on schedule and was steadily progressing toward her other targets. Her overall return was slightly below the market average due to her more conservative allocations for near-term goals, but she was precisely where she needed to be on her financial roadmap. Her story had direction, purpose, and a clear destination.

The Untold Secret of Personal Finance

The financial industry has a vested interest in keeping us focused on returns and asset classes. It’s easier to sell products when customers are constantly chasing performance and looking for edges, much like how Bollywood keeps us hooked with item songs and dramatic dialogues.

But the unsexy truth is that personal finance success comes primarily from:

1. Setting specific, meaningful financial goals (Lakshya)

2. Creating a simple plan aligned with those goals (Yojana)

3. Automating the process to remove emotion (Discipline)

4. Ignoring market noise and staying the course (Dhairya)

Notice that “picking the best investments” isn’t on that list. The difference between a good-enough investment approach and an optimal one is minimal compared to the impact of consistent contributions and emotional discipline. As we say in Hindi, “Boond boond se sagar bharta hai” (The ocean fills drop by drop).

Your Turn: Apna Time Aayega!

Take a moment to ask yourself: Am I more like Raj or Priya? Am I chasing returns without a clear purpose, or am I building a financial plan around my life goals?

If you’re in the Raj camp, don’t worry. It’s never too late to shift your focus. Start with these steps:

1. Write down your financial goals with specific amounts and timeframes
2. Determine how much you need to save monthly to reach each goal
3. Choose simple, low-cost investments appropriate for each goal’s timeline
4. Automate your SIPs
5. Schedule quarterly reviews to track progress, but don’t obsess over daily market movements

Remember, the goal isn’t to beat the market or impress friends with your financial acumen. The goal is to use money as a tool to create the life you want. When you focus on that, the investment decisions become much clearer – and the emotional roller coaster much less intense.

As the great Bollywood wisdom goes: “Tension lene ka nahi, tension dene ka!” (Don’t take tension, give tension!) Let the markets worry about themselves; you focus on your goals.

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About the Author

I’m Bhanu Pratap Jain, a Certified Financial Planner with over 20 years of experience helping Indian families achieve their financial dreams. With expertise in retirement planning, goal planning, wealth management, personal financials planning, I’ve guided hundreds of clients through market ups and downs while keeping them focused on what truly matters – their goals.

What I preach to my clients is exactly what I practice in my own financial life. My family’s financial plan is built around specific goals with clear timelines. We maintain a diversified portfolio of carefully selected mutual funds. We automate our investments through SIPs and review our progress quarterly. During market downturns, we increase our contributions instead of panicking.

This approach has helped us stay on track through multiple market cycles, allowing us to achieve our goals of [mention some of your achieved goals] without the stress of constant market monitoring.

Remember, in the world of personal finance, the most successful stories are often the most boring ones – consistent, disciplined, and focused on the end goal. As we say in Hindi, “Ant bhala to sab bhala!” (All’s well that ends well!)