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STOP taking wrong financial & investment decisions;

START taking right financial & investment decisions

Why do we take wrong financial and investment decisions?

Instead of following a proven practical process to take right financial and investment decisions, we just take decisions impulsively or as a reaction to the circumstance.

“I invested in Highest NAV guaranteed ULIP ploicy, because I’ll not suffer if the market crashes.”

“I took this policy, because everyone told it is a good policy and that is getting closed shortly. So I didn’t want to miss it.”

“I burned my fingers in stock market. I will never ever invest in it.”

“I got a secret tip from an influential person that this stock will go up by 10 times. So I invested a huge sum of money.”

“I don’t believe in stock market, that’s why I always choose safe investments like endowment and money back policies.”

As a financial planner, I come across one of these dialogues everyday.

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Proven Practical Process:

It is difficult to save the market from crashing; it is not possible to stop the agents misselling the insurance products; it is highly impractical to prevent people to give seducing investment tips; it is tough to have only positive investment experiences…

But it is easier, possible, and practical to change ourself to follow a proven practical financial & investment decision making process instead of falling prey for circumstances.

Instead of changing or controlling the financial world and financial climate, it is easier to learn to create your own personal financial world and personal financial climate. It is in your hands.

This proven process has got four steps:

1) Observe your thoughts:

Just ask a simple question yourself and observe your thoughts.

“Why am I taking this particular financial & investment decision?”

(If you are not taking any financial & investment decision now, for the purpose this experiment, you can consider the recent decision you have taken and ask the same above question)

Please be honest. We need not rationalise. Let us not give unreasonable reasons or inexcusable excuses. Be sincere and straight forward.

The answers may be:

“Because, today is the last day to save for income tax…”

“Because, everyone in my office has invested in this scheme…”

“Because, it is a very hot property…”

“Because, it is a one time opportunity…”

“Because I can make more money…”

“Because it is 100% safe and fail-proof…”

“Because it is recommended by an expert…”

Please observe your honest thoughts for the question ‘why am I taking this financial & investment decision?’ and write it down.

2) Evaluate your thoughts:

Now take that answer and start evaluating.

i) Is the answer a lame excuse?

ii) Do you think the answer will give you a long term positive effect?

iii) Do you think the answer will give you personal peace or destroy your personal peace?

iv) Is the answer based on greed or fear or balanced mindset?

v) Does the answer look like a short cut to make money?

vi) Does the answer look like impulsive or reactive or proactive?

vii) Are any of your negative experiences or negative beliefs influencing your answer?

viii) Is the answer based on an external event or circumstance or based on your internal requirement?

ix) Does your answer alarm you that you are taking a long term decision based on your short term emotions?

x) Are you taking this financial decision based on urgency or importance?

xi) Does the answer look emotional or rational?

This evaluation process will dissect your thought process which led you to consider that financial and investment process.

This will reveal the fact. This will help you take more conscious financial and investment decision. This will help you stop falling prey for circumstances.

3) Look for better response:

Instead of taking the decision under question, is there a better alternative?

Instead of taking the decision for the earlier reasons, is there a better and justifiable reasons to take that decision?

In this step, you will not just look at the obvious side of your situation and the financial & investment decision. You will dive deeper and understand your situation better and also you will analyse the strength of the roots of different financial and investment alternatives.

This step will:

  • Make you clear which financial and investment decision is REALLY better.
  • Make you realise the pros and cons of that financial and investment decision.
  • Make sure that you are not headed for a sudden surprise from this decision.
  • Make sure that you don’t regret for taking this decision in the future.

4) Courage to change:

It is not easier to go against the crowd; it is not easier to go against your emotions. It is not easier to take a financial and investment decision by coming out of your comfort zone; It is not easier to change your negative beliefs; it is not easier to heal the burns of your negative experiences; it is not easier to take a decision without the influence of your circumstances.


Do you want YOU decide your financial future? Or

Do you want the crowd/ your emotions/ your comfort zone/ your negative beliefs/ your negative experiences/ your circumstances to decide your financial future?

Be courageous to change the way you take your financial and investment decision.


This simple proven process to take financial and investment decisions can change a VICTIM into a VICTOR.

 (The author is Ramalingam.K an MBA (Finance) and certified financial planner. He is the Director & Chief Financial Planner of holistic investment planners ( a firm that offers Financial Planning and Wealth Management. He Can be reached at

Author Bio

Ramalingam is the Founder and Director of Holistic Investment Planners Private Limited (WEBSITE - As the creator and architect of the 3-Dimensional Holistic Investment Approach, he has advised hundreds of clients including affluent business owners, corporate e View Full Profile

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June 2024