Finance beyond numbers

The occasion of Dasara is best suited to write about a different side of finance which is neither talked about nor forming part of financial reporting. When we think about finance as profession or even look at investing at corporate or personal level, what comes to mind instantly is MS-excel tables, charts, graphs or changing numbers on electronic screens at stock exchange etc. Even any promotional image having some nexus to finance, invariably uses numbers, tables, graphs, calculator in the background. The question is, Is finance only about numbers? Or it also has a different dimension which plays an important role in financial decision making.

Let us take an example which fits apt on today’s occasion. Dasara is considered as one of the most auspicious occasion out of 3-1/2 muhurtas followed by Hindus. It is believed that any investment done on any of these 3-1/2 occasions brings luck and prosperity. Thus, irrespective of the financial ability, innumerable households try to buy gold on these occasions, thereby skyrocketing the sale of gold during this time.

If we have to go purely by logic (of numbers and theory of economics), the prices rise when supply is constant and demand rises, it clearly means the increased demand during these festive season drives the prices high, but who cares. Just visit any gold shop and you will find it crowded. (Though crowd seems fierce in current situation)

Can we say that all the crowd at the gold shop is financially illiterate and not having any formal education in finance? Even if we consider this to be true, does that mean all the people buying gold on these occasions are financial failures, obviously not, most of them may not be successful financially which deserves a mention but certainly they have the capacity to buy gold, however little it may be. Some may be financial success as well. Does that mean all those who have formal education in finance always take right decisions and never fail, at least financially? Even this statement is far from reality.

Then what it takes to be financially successful, in business or in personal finance. Does intuition play a role? Does luck has any role? If yes. No formal education in finance will be necessary but still any level of the same does not guarantee results.

I urge my readers to write back to me about your opinion. I will be blogging periodically about this and few other topics on finance, do subscribe the same to read my articles. I also urge you to share this blog to all those you think will find it interesting to read.

Wish all the readers a very Happy Dasara, may this Dasara bring happiness and prosperity to you.

Thankyou

Comments

  1. UnknownOctober 25, 2020 at 8:29 AM

    In India people follow Customs and Tradition while buying Gold on such auspicious day like Dussehra and Padva irrespective of cost and benefit they could get from the deal.
    For achieving financial goals through investment in such assets always warrants financial literacy.

    ReplyDelete
  2. UnknownOctober 25, 2020 at 8:30 AM

    In India people follow Customs and Tradition while buying Gold on such auspicious day like Dussehra and Padva irrespective of cost and benefit they could get from the deal.
    For achieving financial goals through investment in such assets always warrants financial literacy.

    ReplyDelete
  3. Manisha SinghOctober 25, 2020 at 10:44 PM

    Happy durga puja sir

    ReplyDelete

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