Do you Buy and Hold? Do you put safety first? The rules of money have changed - Part 2/3
Money Lessons
27th April 2018

We are attempting an escape from the ‘neither here nor there’ middle class orbit. And launch ourselves on our way to the riches. And the new rules of money are the key. We saw them in my last post.

The first 3 old rules replaced by new rules are

Old Rules New Rules
Buy Property Early Stay on Rent longer
Avoid Debt Use leverage intelligently
Aspire within your means Aspire for big things

This post quashes more of those old rules…

Old rule 4 / 9 - A bird in hand is better than 2 in a bush

I was toying with this idea of going on my own for a fairly long time.

My family bore the brunt of my frustrations as I over analysed the options.

Going on my own can mean many nice things – money, freedom, fame and more. But that is only if all goes well. If it doesn’t work out as expected, I would have nothing.

I would have to ask the husband money for a pedicure, and then he would ask me questions about where all I spent his money, I would be forced to keep accounts, my mom in law will want me to do ghar ka kaam, I won’t be able to buy my son little this and that, he will stop loving me.... I was getting paranoid. And held on to my job with vengeance.

Some of us do this with our money too. Safeguard it. Don’t try anything new. Stick to bank, gold and real estate. Don’t give it a chance.

And then I saw people as old as I am and with similar backgrounds, getting a lot more done with their time, earning more and leading a more satisfied life.

I realized there was a big risk if I quit working full time. And that there was a huge cost if I didn’t.

Then I quit.

I found myself a mentor who acts as my sounding board, who helps me prepare, prioritize and push me when I get stuck. I created a little money purse back up for a few months so I won’t have to borrow from my husband for my hair cuts and knick knacks.

Get this right, opportunity cost is real.

New Rule – Seize opportunities. Go better prepared.


Old Rule No 5 / 9 - Buy and Hold. Better still forget about it

Fidelity once published a post saying, the portfolio of the 'dead' enjoyed the best possible returns. Read it here. This though sounds funny, isn't entirely logical.

Warren Buffett, the grand old man of investing believes in Buying and Holding. In a world of complicated investment options and hyper activity the simplicity of buying and holding is definitely a welcome respite. But when Buffett said Buy and Hold he didn’t mean Buy and forget about it. You may end up with useless duds if you do that.

Keep the watch. And watch the right things.

Watch not just what returns your portfolio is giving. That really doesn’t mean much and will either give you false hope or dump you to despair.

Instead watch how the business you are invested in is doing. If you are invested in mutual funds, what is your fund manager doing? Is he still on the job or has he moved on? Has the fund philosophy changed? Is she investing in where she told you she would invest? Are his views on the markets and business common sensical? If you can't do this yourself, get someone to do it for you.

New Rule - Keep the Watch on your investments.


Old Rule 6 / 9 - Do it Yourself

Mom was at the phone again. I hadn’t called her back since last Saturday and understandably she is mad at me. “You don’t have time for anything. You think you can buy everything with your money. But you can’t buy this time” she screamed.

I agree. I apologise.

Work and travel are big time consumers. In whatever time is left there are chores, kids, fitness, hobbies, family time, paying bills to be done. And if there is still some teeny weeny bit time left in a day, please eat and sleep. That is how living in a metro is. Read about Time Poverty here.

And you want to manage your money yourself too amidst all of this chaos? Good luck with that.

If you are climbing Mt. Everest, will you read about it all, go through 2 day workshops, do some trial and error with guides and manuals and attempt it on your own? Hell no, you won’t. You will hire a Sherpa, someone who has been there and done that to guide you. The stakes are just too high and you don’t get too many chances.

How different is managing money?

New Rule – Get expert help



  • Sometimes letting go of the one bird in hand might land you a whole lot more better birds. Go prepared.
  • Keep the watch. Hold if it is justified.
  • Don’t do it all yourself. Get an expert. Get a life.

Oops, I still didn’t explain how to balance “big money aspirations” with “middle class values”.

Stay tuned for it in the last part of this series.

If you landed here through Facebook, Linkedin or Twitter and if you don’t want to miss my next posts, subscribe to my newsletter at the top of this page.

If you have money and are considering various investment options, before you make a decision invest 45 minutes to read my e-book. That might (no promises though) save you from making the most common mistakes people do with their investments. Get it by clicking on box on the top right of this page.

If you have a good word about what you read, drop in a comment below. If not, write me a mail. I don't get many mails. So I read and respond to all of them.

Cheers. Take care.

Aditya Shinde
15 September 2017
All is ok, but why all taxes are imposed on common man without any economic discrimination, why should poor & rich person in same get slab,do u think common man show his electricity bills, praperty tax, water tax & etc, as input tax? Actually it is favour to govt administration & business simplifications, this is not a favour to common the basic nessacity commodities like packed food items taxes are raised. Is it good to public?
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