The more I thought about it, the more I realized that the similarities between what it takes to build a healthy mutual fund portfolio and a healthy relationship are uncanny. While there is a lot of knowledge (ET Money, Money Control, etc) and tools (Zerodha, Smallcase, Groww, etc) available online and is also seeing an increase in intentional effort by people in learning how to secure their future by investing in mutual funds. Think about how many times, have you discussed investing in stocks with friends/family over dinner or drinks. Am sure, quite a few. However, when it comes to relationships or love, that’s not always true.
At Baely, we strongly believe that having a healthy relationship is key to having a fulfilling life in the long run. To be clear, one can always make the choice to not be in a relationship, and that’s perfectly ok, but if you are in one, it’s important to have the knowledge and right tools to help you build a healthy and happy relationship.
Unfortunately, amidst the busyness of life, it’s becoming more and more common amongst couples to not regularly invest in their relationships. As a result, their relationship health declines over time, and years later they ask the question - “How did we get here, where did we go wrong? Or sometimes even worse - why am I in this relationship?”.
The first thing anyone who is starting to invest in mutual funds is told is the importance of SIP (systematic investment plans). For the ones who don’t know what SIP is - it is a method of investing in mutual funds where investors contribute a fixed amount of money at regular intervals, typically monthly or quarterly. Instead of only making lump sum investments, SIP allows investors to spread their investments over time, taking advantage of the power of compounding and reducing the impact of market volatility. Similarly, when it comes to your relationship, think of SIPs like watching a movie together, going for that after-dinner drive or walk, etc. Lumpsum top-ups in relationships refer to your annual holiday together, celebrating anniversaries, or planning your partner's birthday, etc. While lump-sum top-ups are great, unfortunately, they are not enough to build a healthy relationship. Just like mutual funds, your relationship also requires SIPs.
Let’s dive deeper to understand more about the similarities between mutual funds and relationships
In mutual funds, the adage "early investment pays off" holds true. It is recommended to start investing in mutual funds early to reap long-term benefits because of the power of compounding that allows your investments to grow exponentially over time. Similarly, in relationships, the small efforts and gestures made early on lay the foundation for compounded emotional connection and trust. So, whether it's your finances or your relationship, starting early pays off big time!
Successful mutual fund investing emphasizes the importance of consistency in making regular investments (aka SIP) over a period of time. Likewise, relationships thrive when individuals consistently invest time and energy into them. Regularly spending quality time together, engaging in meaningful conversations, and actively participating in shared activities are crucial investments that help relationships grow and flourish. It's the consistent investments that strengthen the bond and create a sense of emotional connection.
Successful mutual fund portfolios are built on a diversified range of assets that can weather market fluctuations. Similarly, relationships thrive when individuals invest in creating various shared experiences and build a reservoir of memories that deepen the connection and provide a sense of shared growth. Taking the time to explore new activities together, travel, and engage in meaningful conversations helps build a healthy reservoir. Once in a while, you might get bored of doing something together, so it helps to keep trying something new and exciting.
Read more here: Why Regular Activities are Key to a Happy and Healthy Relationship
Market dynamics change over time and an experienced investor knows that building a healthy mutual fund portfolio is not a one-time event but an ongoing process that requires commitment, effort and requires periodic evaluation and adjustments to ensure it aligns with your goals. Similarly, when it comes to relationships, both you and your partners’ desires, expectations from each other, expectations from life, etc change, and hence relationships thrive when individuals engage in regular check-ins to assess the needs, desires, and growth of both partners.
Open and honest communication during these check-ins helps identify areas that need attention or improvement, allowing for necessary adjustments to be made.
Read more about the benefits of check-in here: Dance of Connection: The Couple's Relationship Check-In Ritual
Experienced mutual fund investors understand that investing for the long term can yield significant growth and financial security. Keeping in mind the long term, also allows investors to not panic and be patient when the market hits its lows, which it will once in a while. Similarly, by keeping long-term fulfillment in mind and not panicking/questioning when you have a fight or a disagreement, individuals can witness personal and relational growth over time. One that has a strong foundation of emotional security, trust, and a sense of fulfillment in the partnership.
