Financial Lessons from the BHAGAVAD GITA

Over the years when you grow up, you need higher wisdom to broaden your source of earning and handling finances. Why don’t you try to change your reading pattern?

Bhagavad Gita, the manual for human beings, teaches you all life lessons with a touch of spirituality, shaping you into a man of perfection.

It is a rescue to all your daily life problems and a reason for all your success in life.

Over the years, Gita has been a secret of the victory for many great personalities in the world. Hear it from the leading examples who will awestruck you with their influence of the Holy Bhagavad Gita - Mahatma Gandhi, Swami Vivekananda, Nikola Tesla, Ralph Waldo Emerson, Aldous Huxley, Henry David Thoreau, Will Smith, J. Robert Oppenheimer, Carl Jung, Bulent Ecevit, George Harrison, and among others.

During the battle of Kurukshetra between Pandavas and Kauravas, the Bhagavad Gita is a dialogue between the warrior-prince Arjuna and Shri Krishna who is serving as his charioteer in the battle. And since then, the Gita has become a moral guide for human life in every field of life.

The life-changing lessons by Krishna can truly uplift the wisdom of an investor. Moreover, the master tricks, powerful strategies, given to Pandavas by Krishna can be a guiding force for your successful financial life.

Critical thinking, staying alert, staying calm, no-greed attitude are some of the teachings of the Gita which are a must to adopt while entering into the investment world. Let’s learn more.

Finance Lessons from the Holy Gita

श्रेयान्स्वधर्मो विगुण: परधर्मात्स्वनुष्ठितात् |

स्वधर्मे निधनं श्रेय: परधर्मो भयावह: || CH 3, 35 ||

śhreyān swa-dharmo viguṇaḥ para-dharmāt sv-anuṣhṭhitāt swa-dharme nidhanaṁ śhreyaḥ para-dharmo bhayāvahaḥ

"It is far better to perform one’s duties perfectly than to imitate someone’s duties. Destruction in the course of performing one’s own duty is better than engaging in another’s duties, to follow another’s path is dangerous."

As an investor, it is better to do your own research and due diligence, rather than following others' investment strategies blindly. Before relying on others' tips and tricks to make money, you should make your own framework. As the investment world is filled with herd instincts, many people follow the actions of others under the assumption that they have already done their research, which can lead to Market crashes or asset bubbles.

A wise investor will always do Swadharma (following his duties) by relying on his own analysis.

दम्भो दर्पोऽभिमानश्च क्रोध: पारुष्यमेव च |

अज्ञानं चाभिजातस्य पार्थ सम्पदमासुरीम् || CH 16, 4 ||

dambho darpo ’bhimānaśh cha krodhaḥ pāruṣhyam EVA cha ajñānaṁ chābhijātasya pārtha sampadam āsurīm

“O Parth, the qualities of those who possess a demoniac nature are hypocrisy, arrogance, conceit, anger, harshness, and ignorance.”

While managing finance, little growth in no time can make you feel proud. But, it can soon develop into an arrogance for possessing talent or skills of making wealth. They desire to be praised by others, imagining themselves to be superior to others. If such investors don’t contemplate soon, a volcano of demonic qualities can erupt such as harshness, arrogance, eventually making such a person ignorant.

Stay away from ego trips, develop the habit of staying humble and be a constant learner. Exchange ideas from your fellow traders, learn from mistakes and maintain poise.

तस्मात्त्वमिन्द्रियाण्यादौ नियम्य भरतर्षभ |

पाप्मानं प्रजहि ह्येनं ज्ञानविज्ञाननाशनम् || CH 3, 41||

tasmāt tvam indriyāṇyādau niyamya bharatarṣhabha pāpmānaṁ prajahi hyenaṁ jñāna-vijñāna-nāśhanam

"Therefore, O best of the Bharatas, in the very beginning bring the senses under control and slay this enemy called desire, which is the embodiment of sin and destroys knowledge and realization."

It is an old saying that desire is the first deadly sin of Investing. Just like Krishna is teaching Arjuna about the ill effects of desires, likewise, many successful investors have time and again advised newbies to keep emotions away from investment life. Do not let the desire of making money overtake you. Focus on the bigger picture. Keep your sense in control, and let your knowledge work for you. Keep patience and stay invested, let your asset grow. Ensure you always control your senses and research well before following the market noise.

उद्धरेदात्मनात्मानं नात्मानमवसादयेत् |

आत्मैव ह्यात्मनो बन्धुरात्मैव रिपुरात्मन: || CH 6, 5 ||

uddhared ātmanātmānaṁ nātmānam avasādayet ātmaiva hyātmano bandhur ātmaiva ripur ātmanaḥ

"Elevate yourself through the power of your mind, and not degrade yourself, for the mind can be the friend and also the enemy of the self."

In this verse, Krishna gives a powerful message by saying that in order to progress higher you have to lift yourself by your own efforts. You are your own friend if you succeed, and if we don’t, you can become our own enemy. In other words, our success and failure are entirely in our own hands. No other person can help you. Therefore, as an investor, you have to train yourself for going in the right direction.

Uplift your mind by the intellect. Indulge in deep research and analysis. Do your fundamental and Technical Analysis before investing in any company. Sharpen your knowledge by keeping updated with world Economics and staying focused on your plan. Be a cognitive investor and don’t fall prey to herd instincts. The intellect will then guide you in the right direction.

Additional Lessons from the Epic Mahabharata

Stay Updated and Enhance your Knowledge

Staying tuned with the economic welfare and political news will give you a broader picture of market movements. Also, have a strong idol and inspiration from the Industry for instance, Warren Buffet, Rakesh Jhunjhunwala or any such top investors and follow their Rules of Investing. You must have a good charioteer like Krishna was for Arjuna. Krishna’s wisdom and clever strategies enabled Arjuna and other Pandavas to emerge victoriously.

Diversify and Avoid Undue Risk

During the Mahabharata battle, Arjuna and Karna were warriors of equal powers; however, Karna possessed a divine weapon gifted by Lord Indra. But Krishna shielded Arjuna from Karna. The important lesson for investors here is that they should not expose their portfolios to Volatility. For instance, just investing in one potential small cap fund can be riskier. Diversify your investments to different assets, so during market volatility, if one fund fails to perform, others can balance the Portfolio. To accomplish a financial goal, Capital protection should be your aim rather than appreciation.

Check Out Best Diversified Funds to Invest in current Year

By Rohini Hiremath

Rohini Hiremath works as a Content Head at Fincash.com. Her passion is to deliver financial knowledge to the masses in simple language. She has a strong background in start-ups and diverse content. Rohini is also an SEO expert, coach and motivating team head!

You can connect with her at rohini.hiremath@fincash.com