Friday, 31 October 2014

Hello Halloween! It’s World Savings Day too….

During my routine World Wide Web poking today evening, I suddenly unearthed the fact that Halloween and World Savings Day coincidentally fall on the same day i.e. 31st October. I thought it would be exciting to explore this concurrence.

First, let’s know something more about World Savings Day and its purpose. The World Savings Day was established on October 31, 1924, during the 1st International Savings Bank Congress (World Society of Savings Banks) in Milano, Italy. Representatives of 29 countries wanted to bring to mind the thought of saving to the worldwide public and its relevance to the economy and the individual.

For the past 90 years WSBI (World Savings Bank Institute) and World Savings Day have celebrated and encouraged the timeless idea and behavior of saving money in a bank rather than keeping it under a mattress.

Today, many people forget World Savings Day because it collides with Halloween.

Halloween also known as All Hallows' Eve or All Saints' Eve is a yearly celebration observed in a number of countries on 31 October. It is dedicated to remembering the dead, including saints (hallows), martyrs, and all the faithful departed believers. The traditional focus of Halloween revolves around the theme of using "humor and ridicule to confront the power of death." Halloween originated from the ancient Celtic festival known as Samhain, which marked the start of winter and the start of New Year. It was believed that the spirits of the dead could return to the earth around Halloween time.

Well well well…..Now people who have long ago learnt to save in Bank instead of keeping money under mattress need to understand that mere Saving is not Investing. Whereas the safety and no-risk features of deposits in Bank appeal to the common man, there is no need to be continuously haunted by the spell of safety. Spooky twin demons of ‘Inflation’ and ‘Taxes’ are bigger enemies. To put it simply, usually only saving will not beat the twin demons, whereas objective of investment is to create wealth after defeating the twin demons.

Relying on past savings and future earning potential is the most followed path for achieving Life Goals. Little is thought of ever changing savings ratio Vis a Vis income, uncertainty of earning potential in future, competition, capacity to work etc. Risk embedded in this is that opportunity cost of achieving the long term Life Goals is far greater than needed. Instead if an individual understands his risk taking capacity, sticks to Asset Allocation, approaches investments in a structured manner and draws a Financial Plan (, he/she will certainly achieve wealth creation.

Remember the dead investments made in the past this Halloween. Seek solution to it. Do not be haunted by past investment mistakes or experiences and carry them till eternity.
Understand that the ghost of uncertainty is quite ineffective in other investment avenues if the Goals are long term. Under the camouflage of safety, recognize, say hello and goodbye to ‘Inflation’ and ‘Taxes’ this Halloween. Adapt new avenues of investment and do not just keep on saving.

Remember!! Halloween is also the World Savings Day, give a new meaning to it.

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