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The heading of the post might have excited you and got you here. Well, yes most of us always have a dilemma when making a personal finance decision. The dilemma is no less than a ethical dilemma for oneself, the ethics being sticking to your savings and budget plans. At the end of all, we end up on a guilt saying I should not have spent this time. I could have postponed it etc etc.

Everyone is in a dilemma at one point or the other. During this lockdown like all of you I also took interest and watched the 2 epics of our country. Ramayan and Mahabharat. Let me site a few examples in this post. Bhishma Pitamaha was in a dilemma when he was forced to stick to his vow to be loyal to the throne and serve on the side of the Kauravas while his heart knew the Pandavas were right and fair. At the end he had to compromise and die. This is a paradox. Similarly, a wrong personal finance decision taken due to a dilemma may lead to a bad consequence.

Why does this happen

1.Conflict between individual and the group goals

Sometimes we tend to be stuck in between personal interest and the interest of a group say our families or our future as a whole. We are in a fix and do not know what to chose. Also we will not know the consequence of our decision and end up on the wrong side

2. Cultural values and background

We might live in an environment where we tend to be conservative, introvert, orthodox or anything similar. We might be in a society where FDs are considered the right way to invest everything even in modern times. There are many women who think jewellery is the best way to invest in gold. Such ‘half knowledge is dangerous’ backgrounds will lead to conflicting personal finance decsions.

3. Pressure from peers

There are people who do a particular investment or expense just because their friend has done it. This is just one kind of example.  Such kind of pressure will lead to a wrong personal finance decision.

4. Conflicting values

Nothing like the Mahabharath example of Pitamaha Bhishma where it speaks clearly about conflicting values. Also in Ramayan, when Lord Ram had to send Devi Sita to the forest just to abide to this vow of being a peoples king.

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Here are a few pointer to help you practice the right thing.

  1. Beneficence – decide what is good to the maximum public
  2. Take a decision which will cause Least Harm.
  3. Be a Utilitarian i.e. think beyond your personal interest.
  4. Apply the decision to our life and check- Autonomy
  5. At the end the most important, take a fair decision – let it serve Justice

The above 3 can be put across in 3 rules.

End Best – Autonomy and Utilitarian

Rule Based – Justice

Care Best – Least Harm, Beneficence

And the most important of all, don’t forget to follow me on my blog for some interesting savings and personal finance tips.

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