Save Enough in Safe Places For Your Old Age: Arun Kumar - Part 2

In continuation to part 1 of the interview, renowned economist Arun Kumar spoke to our correspondent Rajat Mishra about the personal finances.

What is your opinion on the appointment of Nirmala Sitaraman as the Finance Minister?

I don’t think Nirmala Sitaraman is the lone factor; given that the government policies have a lot of say from both the Prime Minister and other members. So, as the Finance Minister of the country, Sitaraman will have to balance out and cater to the influences and pressures from big organisations like CII, FICCI and ASSOCHAM, who will demand tax cuts.

Hailing from the same alma mater, Niramala Sitaraman is a trained economist who will understand all the political factors. But how much freehand she will receive in order to work as per her jurisdiction is what we have to see.

Could you share as to how India’s renowned economist, Arun Kumar, manages his personal finance?

My basic thing is one have to save enough for your old age, and save in safe places and have a safe investment. The stock market is highly unstable, and hence tend to avoid it. Rather than investing in all kinds of fancy investments because the stock markets are every unstable.

So, I think one has to save for one’s old life and for one’s children. And that should be the safe investment and should not be in fancy things coming up.

While investing, what are the factors do you keep in mind?

I prefer to invest safe, rather than at a place where the return is high. Many youngsters look for higher return. The reason it is attractive is because the banks give very less interest rate on fixed deposit. So you are staying where you are.

Whereas, investing in mutual investments will yield very good returns and others such as mid and small caps have not done well in last 2 years. I want to concentrate on my reading and research and not keep stalking it. So, I prefer safe investments.

What has been your financial mantra through out life that you would like to pass on to youngsters?

Be safe and do your work rather than worrying about money all the time. Fulfilling creative work will ensure much more satisfaction in comparison to money. With your money you can always make your next one lakh. Next one crore. You burn out yourself doing that, but you won’t enjoy what you have.

So, a lot of youngsters may be taking fancy vacations, but they are rushing in and rushing out. How much they are enjoying is also not very clear. I always suggest people to do your creative work that is far more important than money.