Set your Goals and have a plan to achieve them – We should set our financial goals – long term and short term and design a plan to achieve them else the goals will fizzle out in some time. Arvind Kejriwal had a goal – Win the elections and have a corruption free country and had a plan to go about it. He apologized for the blunder he made the last time he won and went about wooing the voters. He spoke and rallied at the ground level. He held 110 public rallies to garner support. He understood the problems of the common man like availability of water and power and corruption. He spoke about these problems and promised solutions for them which struck a chord with people.
Learn from your mistakes - Arvind Kejriwal portrayed himself as an angry man the last elections. He also quit after becoming the Chief minister in 49 days and did not do well in the General elections in 2014. In the Delhi elections in 2015, the party used the media effectively, spoke to the people a lot and changed his image to a sensible man who was aware of the problems that people faced in Delhi like health, women's safety etc. He also admitted that he made a mistake by quitting the last time and people liked the fact that he admitted to his mistakes which is quite rare in politics in India. Investors should also admit to their mistakes. Instead of holding to wrong investments, it is better to sell them off, cut your losses and improve investment strategy.
Manage your portfolio in a smart way – AAP had a strong team. Arvind Kejriwal removed people who were not aligned to the party's goals. He selected people in his team who were from all walks of life and a mix of inexperienced but passionate people and people well versed in politics. Similarly we should invest in different asset classes that suit our financial objectives. We should select the right products and make them work for us. In case of changes in market conditions or changes in economic policies, one should not blindly change the asset allocation. It should be tweaked only if the asset present is no more lucrative or financial goals change. Basically one should be aware of what is happening in the financial world and take the right investment decisions so that one can have a diversified portfolio with which one can manage risks and get optimum returns.
We have to see if AAP and Arvind Kejriwal live up to the expectations set. But these lessons will help us in improving our financial life.
*We do not support or are not against any political party. This is an attempt to use lessons learnt in financial planning.
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