Financial "Amygdala"

(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com) 

Financial "Amygdala"...

What drives us to worry, fear and feel anxious about our financial future?

Though there are many drivers for people to plan their financial future, one significant reason is the "Fear"; worries and anxiety caused by fear about one's financial future. 


Human brain is a powerful creation which processes  tonnes of our thoughts and sends out appropriate and many times inappropriate reactions. Fear reaction is created by specific portions inside our brain called "amygdala", which means almond in latin.

-- There are some interesting studies conducted on human beings on the human fear factor. 

Recently, a 44-year-old woman who doesn't experience fear has led to the discovery of where that fright factor lives in the human brain. Researchers put out their best foot to try to scare the patient, whose name they refer just as "SM" in their write-up in the issue of the journal Current Biology. Haunted houses, where monsters tried to evoke an avoidance reaction, instead evoked curiosity; spiders and snakes didn't do the trick; and a battery of scary film clips entertained SM.

The patient has a rare condition called Urbach–Wiethe disease that has destroyed her amygdala (latin word meaning almond), the almond-shaped structure located deep in the brain. Over the past 50 years studies have shown the amygdala plays a central role in generating fear responses in various animals from rats to monkeys.

For most of us, fear seems like a negative emotion, one that stresses us out and inhibits us from trying things that might make our life more rewarding. But as the Current Biology paper makes clear, SM's fearlessness has cost her a great deal. On the most obvious level, it has left her vulnerable to all kinds of dangers. She lives in a dangerous part of a big city, and several times she has walked obliviously into potentially violent encounters. One time, she was held up at gunpoint; another time, a drug addict accosted her and held a knife to her throat. Intriguingly, though she did not feel scared during those encounters, she did report feeling angry and upset afterward. Her emotional deficit is quite specific. --

But one need not worry about this. If one has fear, worries and anxiety in the right levels it's just being a normal human being.

In essence, every one has a sense of fear and anxiety; and those are not negative as supposed to be. As seen in the case of SM, the patient went through tougher times for not feeling scared. But this is just an aberration. Human beings tend to feel fearful and anxious in different degrees. And that factor really drives us to worry about our future.

What do we fear about?

We fear, worry and feel anxious about our 

• Our careers. 
• Our money.
• Our physical lives.
• Our financial life after retirement.
• Our children's future.
• Our family's health.
  

 And these are worrisome because of the financial implications caused by them. And we tend to balance these factors by enjoying the present by shopping, planning a vacation, buying expensive things and seeking spiritual solace.... The financial crisis in 2008 taught us few things. One key learning is that the world is not going to be the same again in the economic sense. 9/11 taught us one thing. The world is not going to be the same again in terms of safety of lives.

What do we do to mitigate these factors which are fear, worry and anxiety caused by money:

We don't have control on many of these things which are created by forces in the world like economic crises, inflation and global security risks. But what we can
control is through our structured planning.

Control the Controllables:

Have a structured financial plan covering your life, investments, your future goals and goals for your kids... The planning can mitigate these risks. And remember, planning is like taking safety precautions on a flight journey. 

Plan for your -

• Life insurance.
• Wealth creation.
• Retirement.
• Children's future. 

Bottom line is that we all have "Amygdala" portions in our brain which makes us fearful, worrisome and anxious on things and they are just normal. And we don't have tools to prevent them, but we can certainly mitigate them.

Speak to Experts @ Money Avenues for your  i S.M.A.R.T financial plan and have worry free financial future.


(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com) 

i S.M.A.R.T for your future...

iS.M.A.R.T for your financial future:

As I write my 100th blog entry, highlighting it just as a matter of statistical delight, primary objective through my blog is to create awareness about our personal money management. And particularly on saving and investing. Awareness becomes paramount as we live in a completely different generation compared to the past. Our careers are shrinking, lifestyles are rapidly changing, risks are shooting up, children are becoming extremely ambitious about their future. All these factors and many more demand a better management of our money. Simply put, one's money should not snooze in the bank @ 3.5% savings account. Your money is hard earned and it deserves a better treatment. I love to highlight,"You work hard for your money, let your money work harder for you"....

I leave a video of the World Gold Council's ad which is equally relevant to money management...


http://adsoftheworld.com/medi /tv/world_gold_council_diwali_2011


Investing and financial planning is just this way..... You should not land in a situation in the future which may squeeze your finances. Plan it ahead and plan it better and Plan the iS.M.A.R.T way for your greater financial future.

Luxuries do not assist your financial goals. ipads, ipods of the world may get outdated in a shorter time. But the seed you sow now for your and your family's financial future will turn out to be a banyan tree after several years if planned well.


In a nutshell -

• Have adequate life insurance.
• Plan to create long term wealth.
• Plan for children's future.
• Plan for your retirement.
• Importantly, don't allow your money to be lazy. Make it work hard, as hard as you work for your money...

Speak to experts @ Money Avenues for your iS.M.A.R.T financial plan....

i S.M.A.R.T financial plan...

(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com) 



iS.M.A.R.T financial plan:

Life is all about planning and execution. And invest in a S.M.A.R.T way... the iS.M.A.R.T way...

Specific.Measurable.Achievable.Realistic.Time bound way...

Financial planning and wealth creation needs a proper planning if one has to aspire for a meaningful financial future. And remember, what you earn is just one part. The other major part is about making money out of your earning. And that needs a structured planning. Our earning life is also shrinking, as many aspire to take a break early in life or choose to do something on their own. Gone are the days of work life uptil 60 or more. 

Go the i S.M.A.R.T way of financial planning...

Remember, personal investing is not about "one size fits all"concept. It's about individual's profile, family and goals for future. And they vary with each individual. Typical like our size and style of clothing. But one thing is common, that every one has goals for the future.
Money Avenues assists individuals on making a personalized financial plan through i S.M.A.R.T

The plan follows the following benchmarks -

Specific: 

Plan should have a specific direction for the individual. That begins with identification of specific goals one should aim for... It can be children education or one's retirement. But the key is to be very specific on goals and the plan. Money Avenues assists you identify the specific goals and plan.


Measurable:

 

Plan should be measurable and quantifiable in numbers. How much do I need for my retirement?

How much do I need for my children education?

Achievable:

The plan should be achievable in terms of goals and objectives. Remember, plan is being prepared for achieving financial goals and will not serve as a mere document.

Realistic:

Financial planning should be realistic in terms fixing financial goals and creating wealth. If someone wants to plan for his children education/ for retirement within a short span of time may sound unrealistic. Plan must be realistic for achieving goals and objectives.


Time bound:

Any financial plan should be time bound. 

For eg., 

I want to plan for children education after 15 years.
I want to plan for my retirement after 20 years.


That becomes key for a successful financial plan...


Speak to Money Avenues Expert to have your iS.M.A.R.T. financial plan for a secure financial future. Our endeavor is to provide a credible and structured financial plan for your financial success.


(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com) 

The Power of NOW...

(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com) 


The power of NOW...

Philosophy of life is quite simple: What was sown yesterday made us what we are now; what will be sown now will make us what we are tomorrow... That's the law of nature.


Same applies to our financial future as well. What we sow now will be reaped by us in future. Listen to what the self made billionaire Warren Buffett had to say about himself in a gist...

In essence, he reaped what he had sown in his younger years and wealth is not created overnight. We should approach the wealth creation and financial planning in the same way as taught by the masters of the subject.


Mother nature gives us great lessons for our lives. For eg., cultivation has a defined time line right from sowing to reaping and the process of cannot be hastened or prolonged beyond a point. Wealth creation is something very similar and money grows with time if planned abd invested properly.

The realize the power of NOW -


1. Ensure lifelong insurance cover:

Life insurance is a great tool to provide financial security to you and to your family in your absence. Have a cover equivalent to 5 times of your annual income @ any given point of time. If your annual salary is Rs 20 lacs, have a cover of 1 crore, it's as simple as that. It's important to raise this cover proportionately with the rising income. It's important to take a cover NOW...

2. Goals and priorities:

Figure out your financial goals and financial priorities NOW... Because goal less life is like a directionless ship in the ocean. Once the goals are frozen, prioritize them based on the financial parameters. But the key is to get them on your table NOW...


3. Manage money:

We all work really hard for our money. And it's only fair to expect the money to work hard for us... Don't leave your money in a bank A/c @ 3.5% and that will be a grave injustice you are doing for yourself. Make your money work hard for you by putting it in the right investment avenues. And do it NOW...

4. Create long term wealth: 

Key is to create long term wealth for fulfilling your goals and aspirations. Billionaires created wealth with few dollars in their wallet. Your income is one part, but what you earn from that income is another important part. All your goals and priorities are tied to wealth creation. Do take effective steps to create wealth NOW...

5. Realize the peril of inflation:

Inflation is a monster which is going to eat our savings and reduce our money to a worthless paper. And remember, all our goals are directly impacted by inflation. Be it children's education or retirement, inflation will have a huge impact on them. Key is to tame the inflation by intelligent investing. And do it NOW...


6. Realize the importance of power of compounding:

Power of compounding works very silently to one's advantage. Its a great tool to fight inflation over the longer term. If one can really multiply money multifold, it can be done only through this method. Realize the importance of power of compounding NOW...


7. Have a financial plan:

It's highly improbable to expect people who are busy in their jobs and careers to manage the money very effectively. So engage a financial planner, like Money Avenues, which will guide you to a great financial plan and also keep a track of it on a regular basis. After all managing money is not for which you are being paid. Outsource the job to a specialist. And do it NOW...


Sow the seeds now and reap the benefits later....


(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)