How Does Saving Money Help You Lead A Fuller Life?

Anisha Advani is a home-maker from Mumbai. She’s confident and unconventional, a cycling enthusiast who belies the image her ‘stay-at-home-mom’ tag might conjure up.

Anisha married young, when she was just twenty-one. She spent those early years sailing around the world with her husband who works in the oil and gas industry. They then moved to New Zealand where her daughter, Anaya, was born. Looking back, Anisha says, “Life was lonely there.” The couple soon returned to India where her husband joined duty on-board ship, while she stayed home to raise their child.Recounting how she first took up cycling, Anisha smiles, “Cycling happened to us by default.” She goes on to explain,” When we first moved to New Zealand, we had no transportation till our drivers’ licenses came through. So we bought two bikes and rode them everywhere-- to work, to shop, and for pleasure.” It soon became a shared passion for the young couple. Back in India, they were initially reluctant to bike since they’d become used to New Zealand’s beautiful, empty roads. Here they had to dodge traffic and pedestrians each time they took to the roads. But Anisha is nothing if not determined,” I’m very passionate about cycling so I decided to just do it. It’s simply a matter of getting used to it.” Now she rides regularly around Bandra, up Pali Hill, Carter Road and Bandstand. She belongs to the Bandra Cycling Club and also participates in an annual cyclathon.

We are fitness freaks who cycle as a family

says Anisha.In fact, her husband is such a dedicated biker that he’s biked several times to Leh, a favorite destination. He taught their daughter to ride and she too is an ardent cyclist now. They take their bikes along on their trips abroad and do all their sight-seeing astride them. Perhaps, for them, cycling represents a certain freedom from constraints; they can just take off, down the street back home, or down the by-lanes of a foreign land, doing things on their own terms.

Cycling is a great stress-buster. It helps me think clearly and sort out my thoughts. A ride always lifts my mood. I feel great when I’m on the bike-- like I’m a queen, in control and in charge.

It’s a wonderful feeling,” she enthuses. And, of course, it’s a great way to stay fit while getting some fresh air. “Staying active is a way of life for me,” says this fitness buff who meditates and practices Iyengar Yoga and the Sudarshan Kriya daily. “I would rather spend time exercising than spend money on doctors.”“Life is uncertain; you cannot take anything for granted,” Anisha continues. “It is vital to secure your family’s future.” Therefore, the couple has invested in life insurance, health insurance, and in a plan for their daughter’s education.“A good medical plan gives you security and peace of mind, that everything and everyone’s taken care of, that we’re all covered in case of any eventuality.They deposit a fixed sum of money each year for their daughter’s education plan. Upon turning 18, she will have a substantial amount for higher studies. “She wants to study in New Zealand because as a citizen, she’s entitled to a student loan.Talking about their investments, Anisha says, “We are not a very financially-savvy couple. So, for us, it is safe products like FDs, where a sizeable chunk of my husband’s salary is invested; we feel secure since it promises sure returns. We are not looking at big returns necessarily; the returns may be small, but they must be consistent.” That is why they invest regularly in SIPs. They also own some Mutual Funds. “I think property’s a safe bet too. We’ve invested in some land where we’ll build ourselves a holiday home someday.”

Although Anisha considers stocks risky,

she does own a few. Her husband invests in long-term stocks, patiently waiting for them to yield good returns a few years down the road. She, on the other hand, wants to see quicker returns.

So, she plays the market a little, based on her brother’s advice.

Asked why she follows her brother’s advice, she replies,” He’s a stockbroker, you see, so he has the know-how and the experience. Also, there’s that comfort factor because he’s family—I trust him.When asked what would make her trust a financial institution or its representative, Anisha is prompt to answer,” First off, the company should have a good track record of healthy returns on investments. Then, investment documents usually contain clauses like ‘conditions apply’, and instructions to ‘read the offer document carefully’. Most of us don’t because we don’t have the time or the inclination, but more often, because we don’t understand the fine print on legal/financial documents. I would greatly appreciate—and eventually trust—a person who explained it all to me upfront. It’s a letdown when one’s painted a rosy picture at the beginning, only to have the downside revealed later.

"I would trust someone who told me exactly what the pros and cons of a particular plan are with no misrepresentation.”

Staying in touch regularly, via email or sms, to keep her apprised of how her investments are doing, would also count for a lot.

Regular contact implies that they’re genuinely interested in making you a profit.

Then, of course, the investment must give consistently good returns,” she finishes.Talking about the difference in her parents’ generation and hers, in terms of money, Anisha says, “Earlier, people were cautious to a fault. They would save all their money, perhaps in F.D.s, and live off the interest. They believed in saving everything for their kids, and hardly spent anything on themselves.”“Our generation, on the other hand, is more sensible about money, we make better use of it,” Anisha feels. She and her husband, for example, believe in saving money and living life to the full. We don’t splurge but we don’t scrounge either,” as Anisha succinctly puts it.Anisha credits her husband with shaping her attitude towards money.

“He believes in moderation and balance.”

She elaborates, “His philosophy is to save a certain amount of money, invest some, and spend something on yourself and your family. I’ve learnt a lot from him.”

• Staying fit at all times is something that all of us want, it keeps us away from spending unnecessarily on doctor fees and medicines. But staying fit doesn’t guarantee you towards the uncertainties that life could bring. And the biggest support during these times is to stay financially stable. Such times the only source of funding is your insurance and your investments.
• Investments- One can choose between safe and risky avenues. While safe investments give you guaranteed returns, risky investments give you higher returns if invested for a longer duration. One can choose between mutual funds investments or fixed deposits for investments or capital appreciation.
• Insurance – While investing helps you for capital appreciation or achieve your goals. Insurance keeps your investments intact during the worst times, like health ailments or the death of the primary bread earner. Health insurance for a family and a term insurance for the primary bread earner becomes mandatory if one wishes to continue a financially stable life.
• Investing a part of your salary first and then spending the remaining should be your motto towards successful financial planning.

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.