It’s never too late to get familiar with basic financial planning, the need for budgets and living within one’s means. This is a series prepared for US clients of Nand Kishore and later in the series adapted for investors in Indian.
Understanding cash flow is critical in these times of volatile commodity prices and unpredictable climate changes. There couldn’t be a more apt time for the proverbial “Save for the Rainy Day” to be relevant. In subsequent posts, the implications of taking a loan to improve cash flows will be explained – but plainly stated – if a loan is deployed for non-income generating purposes, it is fraught with risk leading to even loss of property.
In Kishore’s words – Knowledge, Habits and Systems compound forever. All of us are indeed familiar with Inter-generational wealth (Jamma Holdings). – CLN Newsdesk
N. Kishore — Private Banker, JPMorgan Chase. Numbers by day, Narratives by Night. History buff and restless wanderer, mapping old empires onto new journeys.
Devoted husband, grandfather. Practitioner of tactical silence. Quiet fortitude in reserve.
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A very thoughtful and timely piece. Articles like this go a long way in improving financial literacy and encouraging us to think more consciously about money, cash flow and financial discipline. Looking forward to the next one.
A very timely and thought-provoking message. Financial discipline, prudent borrowing and understanding cash flow are essential not just for protecting generational wealth, but also for creating sustainable wealth for the future. Kodagu, in particular, has immense wealth-creation potential through its coffee, unique products and local expertise. The real opportunity lies in going beyond simply owning these resources and building businesses around them, taking Kodagu’s products and strengths to global markets. With the right knowledge, systems and ambition, our existing wealth can become a foundation for creating much greater wealth for the generations to come.
Very good article. Essential reading for Kodavas in Kodagu – especially when there is potential to save money with the improved coffee prices.
This is an important and timely message, particularly for kodavas living in kodagu. Financial planning is often overlooked because of a traditional mindset of living comfortably with what one has but changing times demand greater awareness.
For kodagu especially where land , agriculture and ancestral properties often form a major part of family wealth, there is a need to distinguish between living assests and Financial security . A family may own acres of land but still struggle with cash flow , educational expenses, medical emergencies etc. This could also make an important generational point. It is never too late to start. Financial discipline is another form of caring for one’s family and protecting one’s future.
This article is most useful for the times we live in. As a full-time erstwhile banker with the largest bank in the country, our growth was entirely dependent on the savings of our customers (CASA). In the past, household savings in the country was the engine of growth for banks to provide loans. While Household financial liabilities in India more than doubled within two years in the 2021-23 period, alarmingly Personal loans, credit card balances, and fintech lending to young borrowers account for the bulk of the surge. The driver is not home loans or productive investment it is unsecured retail credit.
In this context, the visuals from Kishore is an excellent primer. In a district like Kodagu where generational wealth (inherited plantations and most prominently Jamma lands) has been the backbone of income generation. The household borrowings has surged for non- productive investments and that is indeed very risky.
Prudent budgeting, “living within one’s means, generating alternative sources of income (good quality home-stays) and small businesses…is critical for maintaining and enhancing lifestyles. Borrowings and sale of land is ABSOLUTELY A BIG NO.