That investing should start at a young age is a well-known philosophy in financial literacy. But making the common folk understand the nuances of investing is a big challenge.

But if you are an owner of one of the biggest financial platforms or a journalist covering financial markets, the job can become easier. Adhil Shetty, CEO and Co-founder of Bankbazaar.com and AR Hemant, a former journalist and now head of communications at Bankbazaar.com, have done exactly that.

5S Pyramid concept

Through the 5S Pyramid concept - Save, Secure, Savour, Strengthen and Serenity - the book has provided a structured money management plan for investors. However, the book is categorical in asserting that one will not become rich in a year. “It does not aim to tell you which upcoming company could give 1,000 per cent returns on a stock investment. It also will not tell you the best insurance policy or mutual fund you could buy today.”

With many tables and illustrations, the book will be of interest to academicians and students of financial management too. After reading the book, one will get the sense of difference between wants and needs.

The book emphasises the advantage of starting investments at an early age. The authors tap into their personal experience as well as use anecdotes to explain the basics of investing, managing money and wealth creation. The book tells you: How to save better, where to invest and how to secure your finances with several examples.

Savings path

The book starts with Shetty’s own experience at his first job at Cisco Systems where he spent almost all his salary without thinking about saving. When it comes to saving, everyone first thinks of bank deposits. The authors explain that bank deposits too come with a risk. To strengthen the investments, the authors emphasise on the need to diversify savings.

The book also explains the importance of insurance especially in health. “Like the iron beetles’ tough armour, insurance protects us from dire straits. The Covid-19 pandemic highlighted the importance of insurance and why one should not ignore it. A health or life insurance policy should be secured at low costs while one is young and healthy. “Buying them at a ripe age is much more difficult due to the higher costs as well as the conditions placed before your medical fitness.”

How to use credit cards intelligently and prudently, importance of credit scores and the precautions one should take while availing loans are well explained with various examples.

Investment goals

The fourth chapter – Strengthen – Self Assessment – the most important one -- emphasises the importance of having clearly-defined goals while investing and explains the power of compounding, risk involved in investments and well-defined tax planning.

“Maximise your tax deduction via eligible expenses, insurance payments and investments,” it advises but at the same time reiterates that “Wealth creation is ultimately the greatest purpose of money management – not tax savings.”

The last chapter – Serenity Self-Assessment – highlights the importance of reviewing investments every year. “It seems that longer life spans will have a profound impact on everything. As scientific advancements start giving us increasingly longer lives, we also need to think about how we are going to plan our finances to stay the course.”

Systematic kindness plan

If one wonders what should be done after one achieves her financial goals, the authors have noble solution - systematic kindness plan (SKP). “Through SKP, we can find causes close to our heart. We must try to make sure that the problems that affect us deeply, as of today, are wiped out from this country.”

Giving back through SKP can become part of your legacy – one of Serenity for yourself, your loved ones and even the society around you.

Check it out on Amazon.

About the book
Authors: Adhil Shetty with AR Hemant
Price: ₹395
Pages: 312
Publisher: Rupa & Co
Related Topics
comment COMMENT NOW