The avenues chosen for investment or spending may differ. The bottomline, however, is clear that money does matter.
While some are keenly interested in monitoring their active investment/expenditure themselves, some prefer passive and risk-free investments while the rest would rather hand this responsibility over to experts claiming that they dont have a head for numbers. A cross section of personalities share their views on money matters.
What does Mr Damodaran spend his money on "I like to buy books. Sometimes, I do it on impulse especially at airports. I dont spend much on clothes. I like wearing half-sleeve shirts. But working at the UTI, I have to be reasonably well-dressed and so the half sleeves are out. I like to travel and most of it is now for official work. Food can cost you a lot, if you eat out. Once in a while, I catch up on new restaurants. I am not a big spender."
What would he consider to be ideal forms of savings "I can only answer for the middle class," he reiterates. "As far as savings in banks go, some of the income is put away in fixed deposits and some in recurring deposits. They are ideal forms of savings. But the best I think is the Indira Vikas Patra. Only if my father had invested a mere Rs 5,000 in my name, it would have made me a crorepati. Can you imagine ... I would have Rs 2.08 crore! What more could a salaried employee like me ask for"
"Money is created by the central banks and not God. For me, moral principles, ethics rate much higher than money per se."
But the fact remains that he is a creator of wealth that is a source of livelihood to many.
From that context, what does he consider to be a safe investment option
I think RBI bonds, which are tax-free are the best. At 7 per cent interest, which other institution can you think of in the world that would offer this
I dont know how far this scheme by the RBI will last, but as long as it does, it is the best option."
"I feel it is important to learn to live with what one has. I earlier lived in a company flat but when I brought my own 560-sq ft house, I was thrilled. It was fun paying back the loans I owed to my near and dear ones. Owning ones own house is a big thrill. My financial condition is known more to my CFO SN Rane. He runs my life. When some friends said, invest in mutual funds, I did and what I got later was half of what I invested. Later, someone said invest in property. I brought a flat in a high-rise apartment in Delhi and then the Bhuj tragedy happened. The property prices fell and you can imagine what I got out of the Delhi flat. Now I live on the first floor of a building in Mumbai and I am only worried about the floods!"
"I once made some investment in preferential shares and by sheer fluke earned some money on it but was very uncomfortable about those kind of gains which I hadnt earned and so blew it up. I dont really know about savings," he confesses.
Regarding investments, she feels it is best not to put all the eggs in one basket. "Invest a bit in shares, property, gold, etc so that if one crashes, one does not crash land."
Mr Kapoor feels the ideal form of savings would be a mix of two things: shares and property. "I wouldnt recommend trading in shares. I would prefer buying shares of bluechip companies and forgetting about it. Property is also a good buy. It is not a saving actually but a form of security." Where does Mr Kapoor spend his money on
He laughs. "Food." Meaning opening hotels or being a consultant and earning money through it and letting people spend on food "Yes," he says amidst laughter.
"Actually, I dont plan on spending. I am an impulsive spender. I mostly spend on personal items that I am fond of. Like pens and watches." And then adds to say, what else, knives. "I need it, you know," he reiterates.