Wealth wisdom from the Ramayana: 9 money lessons inspired by Lord Ram

Lord Ram’s patient approach in building a bridge to Lanka reminds us of the power of Systematic Investment Plans (SIPs).

While the nation continues to rejoice at the consecration of Lord Ram at the temple built in his honour in Ayodhya, this moment holds more than just spiritual significance—it presents an opportunity for us to glean valuable personal finance lessons from the life of the Lord. As the seventh avatar of Lord Vishnu, Lord Ram embodies divine qualities and imparts practical insights that extend beyond the spiritual realm to various facets of life, particularly personal finance. There are nine essential personal finance lessons inspired by the life of Sri Ram that investors must explore.

Stick to prudent financial planning

Lord Ram’s exile to the forest for years on end serves as a testament to the importance of prudent planning to prepare for the challenges life throws up. Similarly, in personal finance, having a well-thought-out financial plan is crucial. Whether setting financial goals, creating a budget, or investing strategically, planning ensures preparedness for life’s uncertainties. Lord Ram's commitment to responsibilities despite unexpected events emphasises the need to adapt financial plans to changing circumstances, including purchasing the right insurance, building an emergency portfolio, and diversifying investments for safety and risk management in wealth creation.

Also read | Gold or fixed income: which is better to help diversify your portfolio?

Stick to dharma

Lord Ram’s unwavering commitment to dharma (righteousness) forms the cornerstone of his life trajectory. In personal finance, ethical financial practices are essential for long-term success. Upholding honesty, integrity, and fairness in financial decisions, while avoiding the allure of ‘get rich quick' schemes, ensures a stable financial foundation. Sticking to dharma in financial matters contributes to sustainable and ethical wealth creation and leads to fulfilment.

Stick to Simplicity

Lord Ram’s simple and austere lifestyle during exile teaches the virtues of frugality and simplicity. In personal finance, embracing a frugal lifestyle and avoiding unnecessary extravagance promotes financial well-being. Where loans are easily accessible for various indulgences, cultivating a frugal mindset helps differentiate between needs and wants. Lord Ram's contentment in simplicity guides individuals to make informed spending decisions, fostering both savings and financial discipline.

Overcoming credit card debt, curbing excessive spending, avoiding market timing mistakes, and embracing disciplined financial habits contribute to financial well-being. Patience, perseverance, and protection of hard-earned money, symbolised by Lord Ram’s actions, guide investors through market fluctuations.

Stick to strong risk management practices

Lord Ram’s battle with Ravan highlights the importance of courage and risk management. Similarly, in personal finance, taking calculated risks is necessary for wealth creation and achieving financial goals. Assessing risks, having the courage to navigate uncertainties, and seeking guidance from financial experts contribute to financial success.

Also read | Ayodhya Ram Mandir: How your money can take part in the inauguration

Stick to a trusted financial advisor

Lord Ram’s loyalty and strong alliances with allies underscore the significance of loyalty in personal finance. Building trust in financial relationships is crucial for financial stability. Carefully nurture relationships based on mutual respect and trust, forming a support system to overcome financial challenges.

Contrary to the misconception that financial experts only handle routine tasks, they play an instrumental role in guiding investors towards financial success. Financial experts evaluate risk appetite, identify suitable investments, and structure achievable financial goals for clients. Financial experts navigate the complexities of the financial world.

Stick to your financial boundaries and strategy

Banishing financial ills for wealth creation is crucial. Lankapati Ravan’s desire for Sita is a caution against chasing investments based on desire. Investors should establish their financial boundaries, avoiding impulsive decisions and focusing on sound investment practices rather than following ‘tips’.

Stick to SIPs to build a huge Ram Setu

Lord Ram’s patient approach in building a bridge to Lanka reminds us of the power of Systematic Investment Plans (SIPs). Regular, small investments lead to substantial wealth creation over time, emphasising the importance of consistency and patience in the investing journey.

Also, every investor cannot pick Sanjivani, in that case you must take the entire mountain. Drawing from Lord Hanuman’s quest for Sanjivani, investors are advised to reduce stock-specific risks by investing in mutual funds. Owning a part of an entire index ensures that the impact of underperforming stocks is balanced by those performing well, reducing overall risk.

Stick to building a diversified portfolio

Lord Ram’s reliance on allies and a diversified army, which included squirrels, bears, Garuda and monkeys, mirrors the need for a well-diversified investment portfolio. Investors should not rely solely on savings and fixed deposits, and should diversify their investments across asset classes to mitigate risks and enhance investment success.

Don't be driven by your ego

Lankapati Ravan’s downfall due to his oversized ego serves as a cautionary tale for investors. Holding on to underperforming assets out of pride can hinder financial success. Accepting mistakes, cutting losses, and adapting to changing circumstances are vital for sustained financial well-being.

Conclusion

The wisdom embedded in Sri Ram’s life extends beyond spirituality and holds valuable insights for investors. Studying the Ramayana to incorporate lessons such as prudent planning, adherence to dharma, frugality, risk management and loyalty can guide individuals through the complexities of the financial world with purpose and integrity.

As we celebrate the victory of good over evil, investors can embark on their wealth creation journey by eliminating financial obstacles, adopting disciplined financial habits, and learning from the timeless lessons of Lord Ram and his allies.