Having grown up at grandparents’ homes amongst other relatives, I have always been a thrift spender forced by circumstances. Until I went to grad school, my pocket money was Rs.5 – just enough to fix a puncture in my cycle tube, if it ever happened en route school. This nature found its way into my adulthood, too.

My dad lost, I think Rs.10,000, in some MF in ’92 around the time the Mehta scam happened. So mutual funds was a BIG no-no in my investing lexicon.┬áIn short, I was good at saving money but extremely wary of investing.

I find behavioral finance insightful into the relationship we have with money; I believe the way we spend, save, take risks in investments has been shaped over the years by experiences, circumstances, the availability or the lack of in your household, and little incidents that leave a profound impact. You know, the CFA Level 3 program, has a whole chapter on behavioral biases; there are about 20 biases to be precise and honestly, one topic I found confusing to wrap my head around.

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