Virtue – Why you should do for your self first?
Virtue, Many of us may have thought about it at least once in our life.
You may have heard that Virtue should be done only after you have enough money for your future.
Case Study of a Family Who is giving Virtue…
Recently, I have given “Financial Planning” to a Doctor’s Family.
In addition, the doctor is a Housewife, aged 30 years, earning Rs.80,000 per month, her husband is not doing any work and staying at home and looking after the two children.
They are spending Rs.50,000 as monthly household expenses, Rs.15,000 as children schooling expenses per month.
How much amount that this family is giving as virtue?…
I do not like to mention the religion name.
But, as per their religious culture, this family is giving 10% of their income every month as a virtue ( Rs.8,000).
So, it is very clear that the Doctor has Surplus money of Rs.7,000 only after the above expenses and Virtue
What are the financial goals that the Doctor has?…
I have analyzed the Doctor’s Financial Data.
In the process, I have realized that this Doctor has to invest Rs.10,000 for child 1 higher education, Rs.15,000 for child 2 higher education, and Rs.50,000 for her retirement goal ( Financial Freedom Goal).
So, It is very clear that the Doctor has a “-ve” surplus of Rs.68,000 per month.
Hence, it is very clear with this case study, Giving virtue without fulfilling your own basic needs is not a good idea.
How much wealth that the Doctor will lose in 30 years with this charity?…
- The Doctor’s present age is 30 years.
- She will work a total of 360 months until her retirement.
- Monthly Charity ( Virtue) amount is Rs. 8,000.
- The return expected from Rs.8,000 ( if invested without giving charity) is 10% per year.
- Then, the total wealth can be created in 30 years’ time for the Doctor is 1.6 crores.
Here, in this article, the doctor does not have enough money to save for her primary financial goals child higher education and retirement.
But she is giving charity every month ( 10% of her salary).
Which is suicidal.
Hence, it is very clear that giving charity or Virtue without fulfilling your basic needs is not the wisest thing to do.