Why Financial Planning?

Planning is bringing the future into the present so that you can do something about it NOW.

Financial planning is vital to secure our future and achieve our financial goals. Through informed decision-making and meticulous planning tailored to individual circumstances, it paves the way for financial stability and success.

We share the real-life stories of three NRIs (name changed) that highlight the significance of prudent financial planning in achieving long-term goals and security. From ups to downs, each tale reveals the varied experiences of financial success and struggle.

Join us as we explore their journeys, learning important lessons along the way. Through honest accounts, these stories show the resilience of our NRI clients. Let their experiences motivate us to handle our own finances with courage and determination.

Check – Financial Planning for NRIs – How it’s different & complex

NRI Finance Diaries: Tales of Triumphs, Pitfalls, and Financial Freedom

1. Transforming dreams into reality with intelligent financial planning

Meet Arjun, a hard-working and determined person. But intelligent financial planning was the secret sauce that made his dream of financial freedom a reality.

Starting from a humble street food stall in Mumbai, he aspired for a better life for himself and his loved ones. Despite various challenges, he managed to go to Australia for higher studies and then continued on his path to achieve his financial objectives.

At the age of 37, Arjun connected with us, seeking guidance on how to secure his financial future. Understanding his aspirations, we at WiseNRI crafted a personalized financial plan.

Arjun’s strengths are a keen awareness of the financial markets and budgeting. Working with us, he followed the strategy of consistent and disciplined investing. We are happy to share that he has been able to maintain the desired asset allocation and achieve his target corpus for financial freedom at the age of 47. His net worth is almost tenfold compared to a decade ago. Supported by his wife’s earnings, Arjun even enjoyed a stress-free two-year sabbatical..

Satisfied with the results, Arjun continues to work with WiseNRI to refine his financial strategies and create a more comfortable and secure future for himself and his family.

Read – 9 Benefits of Early Financial Planning for NRIs

2. Turning the tide to achieve financial stability

Rakesh is a 42-year-old NRI based in the UK.  Despite his best intentions, Rakesh found himself caught in a whirlwind of poor financial decisions based on emotional reasons and well-meaning but misguided advice from friends and family. He invested in two properties on borrowed funds without much planning. He also purchased insurance policies that were not suitable for him and paid a hefty premium year on year.

He was in a financially complicated situation with high liabilities and zero emergency funds, so he approached WiseNRI. Through a detailed analysis of the situation, we drafted a financial plan that included a plan for debt repayment and financial recovery, even if it meant short-term losses.

Rakesh and WiseNRI are working closely to bring financial discipline in his life. Some of the steps that he takes are:

  • Creating a realistic budget and following it
  • Automating savings and debt repayments
  • Avoiding new debt
  • Building an emergency fund

With a newfound focus on avoiding unnecessary debt and building an emergency fund, Rakesh is laying the groundwork for a secure financial future. We are confident that he will be able to achieve his financial objectives if he continues to follow prudent financial practices.

Must Read: Financial Planning for NRIs in 40s – Check Points

3. The cost of impulse

Meet Kundan, who was running a business in Dubai. He retired at the age of 58. He believed he had a financially sound portfolio with investments in real estate. But these investments were made by taking loans against other investments and insurance policies under the assumption that he could liquidate them whenever needed. However, swept up in the allure of direct equity trading during the COVID era, Kundan succumbed to herd mentality and FOMO, reallocating a significant portion of his wealth from stable fixed deposits to the volatile equity market. Unfortunately, his timing proved costly as the value of his financial assets plummeted by half. It was a poor decision as he did not have much time nor an active income source to devise a strategy to recoup the losses.

As he had accumulated valuable assets in his 50s, his retirement goal was not affected. However, these missteps left Kundan with an imbalanced portfolio and a disrupted financial asset-to-physical asset ratio. He could have pursued his other financial goals if he had avoided poor financial decisions.

Kundan’s story highlights the importance of prudent financial decision-making, especially during times of uncertainty.

Check – How much retirement corpus is enough for NRIs

As we wrap up these stories, let’s remember the lessons they teach us about resilience and determination in the face of financial challenges. May their experiences inspire us all to strive for financial success, no matter the obstacles we may encounter along the way.

If you want please share your story in the comment section.

Published on March 22, 2024

Hemant Beniwal

Hemant Beniwal is a CERTIFIED FINANCIAL PLANNER and his Company Ark Primary Advisors Pvt Ltd is registered as an Investment Adviser with SEBI. Hemant is also a member of the Financial Planning Association, U.S.A and registered as a life planner with Kinder Institute of Life Planning, U.S.A. He started his Financial Planning Practice in 2009 & is among the first generation of financial planners in India. He also authored Bestseller book "Financial Life Planning". 

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