How Investing is Messing with Your Money

Investing is not the magic pill we think it is. In fact, it’s slowly ruining the way we handle our money.

I recently met two individuals: one making ₹50 lakhs a month and the other making ₹1 lakh. Surprisingly, their financial situation was almost the same. Why? Because neither knew how to manage their money. And that’s the crux of the problem. We’ve become so obsessed with the idea of “investing” that we’ve lost touch with the basics -saving, budgeting, and understanding the why behind our financial decisions.

Remember what our grandfathers and fathers taught us about saving? Back then, the mantra was simple: earn, save, and spend wisely. Now, it’s all about returns. “Where can I double my money?” “Which stock will give me 30% this year?” The idea of setting money aside for a rainy day has been overshadowed by chasing illusions of wealth.

It’s like running a marathon without stretching -you’ll collapse before the finish line. Budgeting is your stretch. Saving is your warm-up. Without them, investing is just a reckless sprint toward nowhere.

Why Are We Careless About Investing?

Think about it. When you buy a car, a fridge, or even a mobile phone, you question every detail. Why this brand? Why this model? You won’t spend a rupee until you’re convinced. But when it comes to investing? “Oh, my friend said this mutual fund is great. Let’s put money there.”

We don’t stop to ask the most important question: Why am I investing in the first place? Is it for a child’s education? A house? Retirement? Or is it just FOMO (Fear of Missing Out)? Unless you know your “why,” investing is nothing but gambling.

The Illusion of Returns

Our minds have been hacked by the idea of returns. The bigger the number, the more excited we get. But let’s pause and think. Suppose you miraculously get a 500% return (which, let’s face it, isn’t happening). Now what? What will you do with that ₹1 crore after 10 years?

Here’s a shocker: even a crore can disappear in no time. One child’s education abroad? Gone. Buying a modest flat? Gone. That vacation to Europe? You’re left with pocket change. The point is, without a plan, even the most extraordinary returns won’t solve your financial problems.

The Warren Buffett Syndrome

Ah, the dream of becoming the next Warren Buffett. If you’re daydreaming about beating the market, let me burst that bubble for you. Take any top 50 or 100 stock on Screener and check its 10-year CAGR (Compound Annual Growth Rate). It’ll likely hover around 7-8%. Not exactly the goldmine you imagined, right?

Still feel confident about your stock-picking skills? Remember, even Buffett didn’t become a billionaire by blindly chasing returns -he had a strategy, a plan, and most importantly, patience.

First Things First: Smart Money Management

Investing is not step one. It’s step two (or maybe three). The first step is learning how to manage your money. Budgeting, saving, and understanding your goals should come before you even think about putting money into any asset class. And no, “I want to get rich” is not a goal.

Ask yourself:

• What am I investing for?
• When will I need this money?
• How much risk can I handle without losing sleep?

If you can’t answer these questions, stop. Take a deep breath. Start by building a financial plan. The plan is your roadmap; investing is merely the vehicle.

A Word to the Young Guns

To all the youngsters out there scrolling through finance memes and YouTube gurus, let me tell you this: stop wasting your time and money by investing randomly. Life is unpredictable. The least you can do is keep your swords sharp -learn to manage your finances wisely.

When you have a solid plan, investing becomes meaningful. Without it, you’re just throwing darts in the dark, hoping for a bullseye. Spoiler alert: the dart usually lands on your foot.

The Bottom Line

Investing is important, no doubt. But it’s not a shortcut to wealth, and it’s certainly not the answer to all your financial problems. First, master the art of managing your money. Plan your goals. Understand your why. Only then will investing truly serve its purpose.

At Infinity Wealth Advisor, we’re here to help you figure out your financial “why” and create a roadmap tailored to your life. Let’s stop chasing illusions and start building real, lasting wealth. After all, even the best investments mean nothing without a plan.

And remember: it’s not about how much you earn; it’s about how smartly you manage it.