Money Keeps You Afloat, But Does it Empower You as Much as Your Values?

PayalKhanchandani, 38, is one of those few people who leave their cushy jobs and dive nose-first into the world of entrepreneurship, in search of satisfaction. She was the stereotypical white-collarprofessional with an MBA degree and a comfortable job at one of the leading banks. But comfortable did not equate to fulfilling, and Payal decided to turn her passion into her profession and opened a fitness studio at Mulund.“I have been born and brought up in Dubai, and when I ventured into this field, I realized that fitness was nowhere up to the mark here. I have been working out since I was 15 years old, and my initial goal was to increase awareness about fitness. A lot of people told me, this is not going to work; but I was determined to give it my best, I did not want to go back to banking.”Payal strongly believes that if you follow your dreams and your passion, you are going to be much happier. She also firmly believes that finding a work-life-balance is often difficult for women but having her own setup now gives her the required flexibility. “I have two daughters, who are 12 and 6 years old. I work from 7 am to 3pm, but once the kids are at home, I have at least 3 hours with them. Then I come back here and work till 9:30pm. I now have the freedom to spend time with kids.”

Payal’s previous banking experience provided her with the relevant knowledge about pricing her product offering keeping the costs in mind and handling customer interactions. She did not have to apply for a loan to start this venture as her savings took care of everything. “The term loan itself puts me off. Possibly, because I have never seen my dad pick up a loan. He switched from being a civil engineer to having his own business without any loan. Standing on your own two feet is what I have learnt from him, and if he can do it, so can I.”She follows her father’s philosophy that says that there are two types of people- the ones who think that the more the money, the more you can go crazy spending it; and the others who wait for the money to come in and promptly save it. She believes in the latter. “Our parents suffered more hardships, and as the next generation, we may have benefitted from it. And hence, generations grow and prosper.But now that you have the money, you need to make sure that the focus should be there on investments, savings and not just on spending.”She also strongly feels that education plays an important role in money management. Educated people understand that it is not just about the present, but the future as well. Incoming money, of course, relaxes you a bit in terms of spending, but if weighing the demands against necessities is something that you have grown up with, this attitude doesn’t leave you.“Ultimately if you are strong within, no one can influence you. I believe that where I am today, it is not because of the money. It is because of who I am and what my values are. Money is important, but it is given undue importance. It does not empower you. It is ultimately your values or your quality of life.” Payal is a strong believer in the value system and aims to impart the same to her kids. “I feel that one thing that we can teach the kids today, is how to save. Even if it is the smallest of denomination, I feel it will stay with them life-long.”At the same time, she believes in upgrading her skills and feels like some experiences like learning new aspects, meeting new people etc. are worth the money spent on them. She has been the pioneer of many new types of workouts and has even travelled internationally to acquire the skills/knowledge.For the longest time, Payal and her husband did not buy a health insurance policy because they felt their savings were enough, but now as they are turning 40, they felt the need to secure the medical expenditure. Being a big believer in savings, Payal clearly segregates between savings and investments. Savings are for self-care and investments are for returns.“I have invested in shares and mutual funds before,but you just kind of need to know what are the risks and how much money do you need to put in. Earlier, my focus was more on asset allocation- equity and mutual funds. Nowthat I am in a different field, I have switched to FDs as they are more stable. Generally, in the equity market, since the risk is more, the returns are also more. But I don’t quantify as such. It is not like if I have invested this much,then I have to get this much.”Having been in the banking sector, Payal is very acutely aware of the hidden costs and what exactly does a good product entail. Her biggest concern is losing the capital because she has suffered from the 2008 crash and lost a considerable amount of money in the event. “Because I have worked in that field, I know that every product is going to have some catch or the other. So, you should have that transparency.That was one of the main reasons I decided to not pursue that profession any further.” And that is also one of the reasons that she has switched to the low risk, low return portfolio. Payal finds a Fixed Deposit convenient because you can withdraw at any point in time and also believes in having your health and life insurance in place, as they will come in handy when times are grey.For a professional turned entrepreneur like Payal, it is evident that the financial priorities shift. You do not always progress when it comes to taking on more risks, you also sometimes, take a step back, recalibrate and lower your expectations from your money.

• Investment is not just for the men; women are also actively involving themselves in the investment game. Financial independence and equality are important aspects that women strive for. Many of them have given up their white-collar profession and turned entrepreneurs in order to pursue their passion.
• Setting up a business requires investment in a huge amount. Some do it with the help of savings, while others prefer taking a bank loan. In the process, savings and investments shouldn't take a backseat, for you need to take of your family and retirement needs. Here are three things you should do as a women entrepreneur:
• Health & Life Insurance Cover: The rising medical expenditure can burn a hole in your pocket. You need to buy a health insurance policy that takes care of the medical expenses, helping you save more. Besides, a life cover protects your family from the financial crisis in case of your absence.
• Investments: When it comes to investments, there are varied options. You can choose traditional mediums like Fixed Deposit and Recurring Deposit, or you can opt for market-linked investment options like equities or debt funds. If you're a conservative investor, it is wise to pick a debt scheme that may be a more valid suggestion than equity. Moreover, mutual fund options help to beat inflation, unlike FDs or RDs.
• Child Plan: This is the most significant part of financial planning. You need to secure your child's future with a plan that will take care of his various life-stage goals when you're not around. If you are looking to build wealth and live a life of prosperity, investing in the right option is the key. Happy Investing!

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.