Lifestyle choices: The Financial Bit.

The following is an excerpt of a mail I sent to my cousin sister in response to an article she sent me on investment:

In my early twenties, I used to read a magazine called Investors that kind of shaped my thinking - I never believed in long term FDs because inflation neutralizes the marginal gain and short terms are just plain useless.

Now I focus on vital few (invest in a project or two) instead of trivial many (paper assets, properties, insurance etc)- a disciplined and structured pursuit to live with less. I may have reasonably high financial goals for the next decade, not in a competitive way but a collaborative way working with my tribe, and "savings" has no role to play here.

Savings/ FDs never made a person rich by experience or wealthy by currency. Something saved for a rainy day, often gets spent on a rainy day.

Our factory model education system (That is linear and based on conformity) is zero on financial literacy. The generation today, don't even know how much they want, why they want - It is more about external validation and social acceptance. They understand net worth and the Forbes list, however clueless about self worth. I did not intend to react about the article with a "Me" thing or generalizing a generation - An economy is not just about government, it is about individual thinking. How can thinking evolve if education is all about pursuits, scores, degrees and failed parenting strategies?

If youth today, think of solving an issue, addressing a cause, be a global citizen instead of studying for a job or a pay check, they will not talk savings, but assets that appreciates - The whole world is their market - they bring home dollars. They will not talk about retirement benefits, but about leaving a huge legacy long after they are gone.

The topic "Savings" is a favorite pass time for many from our generation because they do not quiet understand anything else, like investing 1/10th their money in someone's business that can fetch them returns in a year (Angel Investors) - So what most people think is the safest investment FD is actually the weakest link in their financial landscape and sole dependence on that can be disastrous.

I am going to leave you all with two questions:

1] Do you know or have any idea, exactly how much you need to earn to live happily ever after? 

2] Do you think the reason why you are working so hard, is because you do not know how much you  actually need?