How Does Money Give One The Freedom To Have Experiences In Life?

Ashna Mehta, 29, comes from the ‘sleepy’ small town of Nagpur and has chosen Bandra, Mumbai, as her new home. A Sr. Brand Manager in a start-up e-commerce company, Ashna does not believe in getting too comfortable in any stage of her life. She believes that it is your own responsibility to fight a situation that is not helping you grow as an individual. This is one of the reasons that brought her to Mumbai, and then there was no looking back.

“I like the equality in Mumbai. There is a sense of purpose, everyone is running towards a goal, and the city almost forces you to move along with it. Now, contrast this to Nagpur, a town where life doesn’t seem to move ahead. It is almost as if people like doing the same things over”, muses Ashna. Having done her Post Graduation from Italy in Fashion Management, her family has never refrained from experiences that enhance her personality. A dancer, food-plater on Instagram, a fashion enthusiast, and a fearless girl who is paving her own path in a city like Mumbai that can get intimidating, what is it that keeps Ashna going?

"I was very young when my mom used to tell me that I had to find my own identity and work. Joining the family business would have been easy, but how do I measure my growth there?"

Where is the career ladder that I am climbing?

"How do I measure the success I have achieved?"

I was 26 when I first managed a team, very few people get to do that. It was a mandate growing up, to do something with your life; it wasn’t optional.”Ashna’s measure of a fulfilled life is perhaps similar to any other Millennial but what separates her from the rest is the hunger for more, to do better. “One thing that was always taught to me was that you must always be learning. Consider that something is wrong if the learning stops”, and you can see a glimmer of pride in her eyes. “I have a vision of starting an attire brand; we have manufacturing capabilities in our country, but we lack the Indian brands on global platforms.” Although the plan to get there has not been completely chalked out yet, but her experience at the current firm is taking her closer to it, and also has made her independent.

"That is what I like about living in Mumbai vis a vis Nagpur, and you get to live life on your own terms here. I decide where my money is spent, where my life is headed; it is up to me to make it or break it.”

It is in Mumbai, where the position, the job and the money have given Ashna her own identity. And she makes the best of the opportunities by indulging in a Rs 10,000 worth Sommelier course because she is a wine lover or constantly planning her next travel trip and saving for it. Ashna’s life is dedicated to the experiences she feels she was deprived of while in a small town and now is the time for her to live them.Why else would you save up to go for a 5-course Truffle dinner at a community table where you don’t know a single soul? But Ashna adores this freedom and liberty to be able to indulge in these interactions!
Ashna was 20/21 when she had met with her father’s financial advisor to understand why saving/investment is relevant. And he is still the man she turns to for financial advice. But why is it that a girl so fiercely independent otherwise and creating a brand of herself on e-commerce would not want to get into investing herself? “It frustrates me to a certain extent because

"I feel like I don’t know enough- the jargon, the risks, etc. I know I am not as good in the financial investing area, and there is a lack of personal interest, so it works for me to go to an advisor.”

But that doesn’t mean she isn’t good with her money. She reads up the things she doesn’t understand; she circles back to the people she knows can help her and uses an expense-tracking app! “Even if I spend 5 Rs on something, I feed it in the app. This app is like a reminder for me on the percentage I am spending on things so that I can make amends if required. I believe in spending what you earn or afford and hence, up until 6 months ago, I did not even own a credit card!”After spending about 30% on the rent, 25-30% on groceries, transport etc. and 10% on her SIPs, Ashna saves up to the last bit to be able to afford holidays or indulge in a new hobby. There is not much left to be saved up for a life insurance or health insurance policy out of her monthly income. An LIC policy on her name has her premium paid off by her parents. “I don’t ask for money from my parents, but at the same time,I let them do those small things for me like buying me an expensive dress for an occasion or paying for the family trips.” Ashna is pretty clear on investing only in mutual fund schemes via SIPs. And the schemes she has chosen are all debt schemes and is not looking to withdraw before 3 years. Quite a contrast to her risk-taking personality in real life, Ashna is a risk-averse investor who aims to keep the money locked only to be used for her short/mid-term goals.She’s the kind of person who would give on shopping if she is saving up for a holiday or the kind who would spend too much one month and then spend the next 3 not spending at all in order to compensate for it. She is aware and responsible, with her priorities clearly set. With a strong affinity towards Europe, she is keen on an opportunity to work with an MNC that allows her to work from there. “One short/mid-term goal is to work at an MNC and the second is to acquire new knowledge. I feel like my education, 6-8 years old, can get obsolete. So, I want to spend time and money in doing the courses that are trending now.” Ashna is into all things young and fun, including her work, but her first and last criterion on evaluating her growth is: is it adding value to me as a person? Quite a clear head for a 29-year-old!

“Money gives me freedom, the freedom to be on my own. If I were to be dependent on someone, I don’t think I’d be spending too much. You need money to only provide for your basics, right? For everything else or the luxuries you want to indulge in, you need to earn the price yourself.”

• Managing your money is equally important as earning money to attain the freedom to be on your own. Not having a track on your expenses can lead to a depletion in your savings. The primary goal of efficient money management is to save first and then spend the remaining amount. Here are two major rules that can help you with your money management.
• Decide Your Investment Percentage- Always set aside the amount you would be willing to invest according to your goals. Choosing your investment avenue according to your needs and your risk-taking appetite would further help you to achieve your goals. Like if you have short term or mid-term goals and are risk-averse, you can choose debt funds. If you are planning for long term goals and have a risk-taking capacity, you can invest in equity funds. Remember, higher risks also come with higher returns.
• Track your expenses- This is a way to lessen your expenses, thereby avoid unnecessary spending. Keeping track of all the expenses of the month like rent, bills, or grocery would allow you to know the minimum expenses that you would need to bear in the month and to avoid unnecessary spending. Moreover, if you set a minimum percentage for the expenses, you can always balance it by spending less on some and more on others.
• Understanding your expense to savings ratio would always help you to manage your money efficiently. Also, starting early with your investment can help you to be a disciplined investor and allow your goals to fulfilled on time.

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.