By Omang Khurana November 29, 2020 In Uncategorized


It is not a secret that majority people keep delaying decisions related to their personal finances in lethargy. This behavior forms part of a very common attitude called Financial Inertia.

The thought process of a person in financial inertia usually says: “I am earning well, no need to look at my portfolio” or “I know that I need to do something for my financial planning, but I am too tired today”. Both these thought processes may not harm over a few days. However, the issue is that in majority cases this mentality lasts for months and years until it gets too late for them.

Let’s discuss why the cost of doing nothing today, is expensive, with a scenario.

NOTE: The calculations below are not the only calculations required in financial planning or wealth consultancy.

Scenario 1: Future Value of Money (erosion or discounting)

Let’s assume you have INR 1 Crore (1,00,00,000) savings in your bank account. You save this money for 2 years at the current inflation in the Indian economy, which is @7.6%.

After 2 years,
Future Value of today’s INR 1 Crore = 10000000/(1+0.076)^2 = INR 86,37,249.374 (INR 86.37 Lakhs)

So by doing nothing for 2 years, you have lost INR 13.63 Lakhs worth of purchasing power of your own hard earned money!

Scenario 2: Insurances outdated or not enough

Let’s assume you purchased life insurance of INR 1 Crore when you were 25 years old and today you are 35 years old. Thus, a time period of 10 years.

Now with 10 years of inflation eroding purchasing power,
Today’s Value of INR 1 Crore = 10000000/(1+0.076)^10 = INR 48,07,035 (INR 48.07 Lakhs)

Insurance Shortfall = 10000000 – 4807035 = INR 51,92,965 (INR 51.93 Lakhs)

This means that in 10 years time you have a created a shortfall of at least INR 51.93 Lakhs in your life insurance.

Is it worth sticking to just INR 1 Crore life insurance or do you need more? Is it worth risking your families’ well-being in case of your unexpected passing away?

Scenario 3: Financial Strategies not regularly customized by a Wealth Consultant

Let’s assume you are a happy investor holding a diversified portfolio across multiple asset classes like property, stocks, mutual funds etc.

You are invested in various investment vehicles, but did you consider:

  1. Is your diversified financial solution customized personally for you? OR did you just follow generic investing tips from your banker/broker?
  2. Does the strategy satisfy your short, medium and long term goals? OR does it just grow/depreciate without purpose?
  3. How much money will you need at retirement or your children’s education?
  4. Do you have adequate protection planning (life, health and vehicle insurances)?
  5. Does your strategy offer you adequate liquidity?
  6. What will you do if recessions like 2008 or COVID-19 (2020) occur next time?

Here, you will have to optimize your strategy from time to time as your personal situations change with help of professional Wealth Consultants.

In the above 3 scenarios, it is clearly observed that holding on to financial inertia can lead to erosion of wealth and shortfalls in protection planning. Also, holding on to outdated or unplanned financial strategies will not suffice.

Thus, paying quick and regular attention to your financial decisions and keep them as updated like you update the software in your mobile phone is not just good-to-do, but a MUST DO.

To book a complimentary meeting with a Wealth Consultant (Chartered Wealth Manager) go to and book an appointment.


  • Meryl D'Souza December 10, 2020

    Merely wanna input on few general things, The website style is perfect, the subject material is real good 😀

  • Eshan Gupta December 14, 2020

    Looking forward to reading more. Great blog article. Thanks Again. Great.

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    I enjoy reading a post that will make me think. Also, thanks for allowing for me to comment.

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    I always email your blog posts to all my associates, as they like to read it! Very clear explanation Omang 🙂

  • Harbeer Singh Sabherwal December 18, 2020

    You have come a long way since university, Omang! Great posts even applicable here in Canada with our inflation rates. We anyways do not have the concept of fixed deposit interest rates here so investing is the only option. All the best, you are an amazing wealth consultant 🙂

  • Kanika Shah December 18, 2020

    What a material of un-ambiguity and preserveness of valuable experience regarding unexpected expenses.

  • Jasmeet Singh Kukreja December 18, 2020

    Insurances are so important now a days. I had never thought of inflation adjustment in insurances ever but numbers don’t lie. Thanks!

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    You have genuinely touched some hard hitting true points here.

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    I all the time used to read article in news papers but none of them gave real numbers to explain the concept. This is good.

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  • Pritish Sehgal December 20, 2020

    So true. If we do not act today we will regret it tomorrow. Very good Omang, keep up!

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    Great blog Omang! Its a calculated article with a reality check.

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