“Mom, I want to be a doctor. Can I become one?” asked six-year old Anjali as she ran up to her mom – Simran. “Of course, why not? If you study well you can become the best doctor in the world”. “You are the best”, Anjali said as she hugged her mom tight. However, what was more overwhelming than that tight hug, was the tightness Simran felt inside. Simran knew that her daughter was very bright and could definitely be the best doctor, but so could she.
Simran remembered the time when she completed her secondary education. Simran used to be an exceptionally bright student and coincidentally, like her daughter, even she wanted to become a doctor. On the last day of school she went up to her parents and shared her dream and she can never forget the response she received. With tears in his eyes, her father told – “Simran, we are very proud of you and believe in your abilities but we can’t afford the high education expenses. Your dream is too expensive for us”.
“Your dream is too expensive for us.”
The doorbell buzzed and broke her reverie. Her eyes were now red and forehead in a frown. Raj stepped in and instantly knew that something serious is bothering her. Raj asked her about her grim expression; she wasn’t her usual self. Suddenly, tears started rolling down her warm cheeks and she managed to stutter in a mixed state of pain and anger – “Never, I mean never, will our daughter’s dreams be too expensive for us!” Raj knew about Simran’s life like a book and almost immediately understood what happened. “She will dream big and we will give her dreams the wings it needs”, Raj told her reassuringly.
Here’s how Raj and Simran worked as a team to bring their daughter’s dream closer to her.
- Understanding the dream
Raj and Simran spent time speaking to their friends and family trying to understand what does it take for a person to achieve a dream similar to becoming a doctor. They were more aware of their surroundings now. Every now and then Simran would engage in small talk with medical students she met in the bus and tries to understand the challenges and the opportunities they face. Raj and Simran realise that they can’t help little Anjali achieve her dreams till they understand her dreams.
- Making big money last longer
While every parent dreams of a bright future for their children, it is equally important for them to lay the foundation well enough. Raj had just received his bonus. The bonus was always used either to make a down payment for a new vehicle or a gadget, but not this time. This time he decided to invest it in a good mutual fund and not touch it till Anjali turns 16. Little did he know that this small bonus would grow over 6 times by the end of 10 years.
- Every experience teaches
One day while packing the tiffin for Anjali, Simran noticed that she would always pack two tiffins – one with bourbon biscuits or grapes which Anjali would eat through the day in small parts and second would be proper lunch for the long lunch break. “This is exactly what we should do with money!” Simran thought to herself. She started saving money for two different goals – one for the periodic expenses which she would save in an instant redemption debt fund and second was an SIP into equity mutual funds for building a corpus sufficient to meet all long term expenses.
- Let the kid know you’re there
Raj and Simran would continuously motivate her and help her understand concepts. As she grew older, Anjali wanted to participate in research and experiment exhibitions. While participation in such exhibitions required a high level of caliber and intellect, it also needed some financial backing for all the equipment and apparatus needed. Well, that was no longer a worry as Simran and Raj had already started setting money aside for these steps to their daughter’s success.
With Simran and Raj’s smart financial planning, Anjali was able to pick opportunities and excel at them. While the financial requirement would seem too huge as an absolute, it really required nothing more than disciplined and smart investing of affordable amounts.
As Anjali grew up from a six year-old to a 23 year old MBBS, she cleared the exams and was offered to complete her MS from the world’s most prestigious university located in the USA. But now, there was only one problem – the admission would cost Rs. 75 lakhs. Here’s the twist – Remember Simran’s tiffin box strategy? Yes, the one where money was split for long-term and short term needs. The ten thousand rupees she invested every month had now grown to Rs. 2.6 crores. (This is actually possible and similar has happened)
As they dropped Anjali to the airport, Raj looked into Simran’s eyes and said – “Our daughter’s dreams will never be too expensive for us.”