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Let Your Money Work For You
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Tuesday, September 17, 2024

Financial Planning & Indian Ethos

 

Indian ethos impacts the performance of business by emphasizing on the concept like sacrificing individual desires in favour of social benefits, preferring long term benefits. Self-motivation and self-development helps a lot in development of business and its quality.

Indian Ethos in Management refers to the values and practices that the culture of India (Bharatheeya Sanskriti) can contribute to service, leadership and management. These values and practices are rooted in Sanathana Dharma (the eternal essence), and have been influenced by various strands of Indian philosophy.

Work values from Bharatheeya Sanskriti

1. Paropakaaraartham Idam Shareeram - The body is meant for serving others or for the higher common good.

2. Atmanomokshartham Jagat Hitayacha - Endeavors should be made considering the well-being of the world too, while considering the (spiritual) well-being of oneself.

3. Trikaranasuddhi - To consider work as a means to grow oneself in 'Purity and Unity of Thought, Word and Deed'.

4. Yagnaya charatha: karma - To engage in work as a sacred offering




The Purusharthas, also known as the "four aims of life," are foundational concepts in Hindu philosophy. They outline the essential pursuits and goals that individuals should strive for in their lives. The Purusharthas provide a framework for understanding the purpose and direction of human existence. The four Purusharthas are Dharma, Artha, Kama, and Moksha. Let's explore the relationship between values and each Purushartha:

1.      Dharma (Righteousness and Duty): Values Associated: Dharma is often translated as righteousness or duty. Values associated with Dharma include integrity, honesty, justice, and ethical conduct.

2.      Alignment with Values: Following Dharma involves living in accordance with moral and ethical principles. Upholding values such as truthfulness and compassion is central to the practice of Dharma.

3.      Artha (Wealth and Prosperity): Values Associated: Artha encompasses the pursuit of material well-being, wealth, and prosperity. Values associated with Artha include hard work, discipline, and financial responsibility.

4.      Alignment with Values: The pursuit of Artha is guided by ethical means. Values ensure that the accumulation of wealth is in harmony with principles of honesty, fairness, and social responsibility.

5.      Kama (Desire and Pleasure): Values Associated: Kama involves the pursuit of desires, pleasures, and aesthetic enjoyment. Values associated with Kama include balance, moderation, and ethical indulgence.

6.      Alignment with Values: While seeking pleasure, individuals are encouraged to do so within the boundaries of moral conduct. Values ensure that desires are pursued with respect for oneself and others.

7.      Moksha (Liberation and Spiritual Freedom): Values Associated: Moksha represents the ultimate goal of spiritual liberation and freedom from the cycle of birth and death. Values associated with Moksha include self-discipline, detachment, and spiritual wisdom.

8.      Alignment with Values: Living a life aligned with higher values is seen as a path to Moksha. Ethical conduct, selfless service, and the pursuit of spiritual knowledge are integral to the journey toward liberation.

 Relationship between Values and Purusharthas:

1. Harmony and Balance: The pursuit of each Purushartha is guided by values that emphasize harmony and balance. Balancing material pursuits (Artha) with ethical conduct, moderation in desires (Kama), and a commitment to righteous living (Dharma) leads to a holistic and fulfilling life.

2. Ethical Foundation: Values provide the ethical foundation for the pursuit of all Purusharthas. Whether accumulating wealth, seeking pleasure, fulfilling duties, or striving for spiritual liberation, ethical values guide individuals in making choices that align with higher principles.

             3. Integrity in Action: Values such as integrity, honesty, and authenticity play a crucial role in each Purushartha. They ensure that actions are aligned with one's principles and contribute positively to personal growth and societal well-being.

             4. Spiritual Growth: The pursuit of Moksha, the ultimate aim, is deeply connected to values that foster spiritual growth. Values such as humility, self-discipline, and detachment are essential for transcending the material world and attaining spiritual liberation.

            5. Social Responsibility: Values associated with Dharma and Artha highlight the importance of social responsibility. Pursuing wealth or pleasure ethically and fulfilling one's duties contribute to the well-being of the community and society at large.

            6. Guidance for Decision-Making: Values serve as guiding principles in decision-making for each Purushartha.

 

They help individuals navigate the complexities of life, ensuring that choices are aligned with principles that promote personal and collective welfare.

  In summary, the Purusharthas provide a comprehensive framework for understanding the diverse goals and pursuits in human life. Values serve as the moral compass that directs individuals in navigating these pursuits in a way that is ethical, balanced, and conducive to spiritual growth. The alignment of values with the Purusharthas contributes to a meaningful and purposeful life in accordance with Hindu philosophical traditions

Influence of Arthasasthra

 

Written by Kautilya, also known as Chanakya and Vishnugupta, around 350 B.C., Arthashastra literally means 'Scripture of Wealth'. To Chanakya, the source of livelihood of man is wealth and that for a nation the wealth is in the form of both the territory of the state and its inhabitants with variety of occupations.

Wealth is defined, in modern English, as “an abundance of valuable possessions or money” or “a plentiful supply of a particular desirable thing.” The father of capitalism, Adam Smith, in his book The Wealth of Nations, described wealth as “the annual produce of the land and labour of society”. This “produce” is “that which satisfies human needs and wants of utility.” In popular usage, wealth is understood as an abundance of items of transactional value.

 

Kautilya, also known as Chanakya, had a great understanding of wealth. He often termed it Artha. In the Artha Sutras, he suggests “Artha is the root of happiness.” Kautilya’s Artha is not just currency, but also material property and, most importantly, knowledge. “No wealth is greater than the wealth of knowledge,” he argues in his Neeti. That is because “Knowledge explains our being, as well as that which is in our possession (resources) and enables us to use those resources to get that which we want (wealth).”

 

In the second axiom, he says, “the root of wealth is Dharma.” Kautilya’s Dharma is never to be translated as “religion”. Dharma is good conduct. It’s that “which sustains” and that which empowers us to “do good to us as well around us” – our family and society. Anything that hurts any being (humans as well as animals) for no fault of theirs, is Adharma or against Dharma. Therefore, any Artha or wealth gained through the path of Adharma is called Anartha. Anartha, in Sanskrit, also means “disaster”.

Wealth is useless when hoarded without any utility to the one who possesses it. Modern economists will agree that hoarded currencies are detrimental to a nation’s economy. For Artha or wealth to be in shape, it must be used in transaction – either as an investment or expenditure. Kautilya defined hoarded wealth as Vyartha or liabilityIn Sanskrit, Vyartha also means useless. He advises, “Wealth has only three ends – it’s either spent on deserving people or things, misspent on undeserving people and things or just rots away and falls into the hands of others (deserving or undeserving).” Stagnant wealth is of no utility.

 

When wealth is used for something good, which includes satisfying one’s needs, needs of dependents, helping those who are less fortunate as well as those who are despondent, is Artha. It is important to note that Artha also means “meaningful” in Sanskrit.

According to Kautilya, the understanding of the ideas and ideals of Artha, Vyartha, and Anartha are key to earning, retaining as well as the rightful dispensation of wealth for one’s own as well as universal welfare. It also helps in establishing peace and prosperity in one’s family, society, the nation as well as the world at large.

A despicable person bereft of wealth, is often the one who’s bereft of knowledge or Gyaana. Knowledge, one must understand, is not just data or information. Modern educational institutions, often offer courses with the apparent intent to provide knowledge, but only end up providing some form of data or information, and a certificate to that effect.

If “knowledge” does not help you sustain yourself or those who depend on you, it is not “knowledge”, but data or information. They are subject to change. This does not mean data is useless, rather it is pointless without the knowledge and its application. Knowledge provides us with the ability to interpret data and information and use it to our best advantage. In the absence of knowledge, we suffer. In the absence of knowledge, we are ignorant. In ignorance, there is uncertainty bound with a certain fear. Fear causes mental unrest. Mental instability often makes us take detrimental decisions, causing loss of wealth and even poverty.

Manusmrithi

Yogi Adityanath, then a Member of Parliament and now the Chief Minister of Uttar Pradesh, wrote an article on his website on the role of women in Indian culture in 2012. He famously wrote that women could not be left free. He was echoing what had been prescribed in Manusmriti, which held the following:

5.148. In childhood a female must be subject to her father, in youth to her husband, when her lord is dead to her sons; a woman must never be independent.

…9.2. Day and night woman must be kept in dependence by the males (of) their (families), and, if they attach themselves to sensual enjoyments, they must be kept under one’s control.

9.3. Her father protects (her) in childhood, her husband protects (her) in youth, and her sons protect (her) in old age; a woman is never fit for independence .

In the Hindi heartland one often hears men wistfully say, “Ladki Hath se Nikal gayi” (the woman has slipped out of one’s sphere of influence). The insensitivity was reflected in an equally outrageous statement by yet another chief minister of a BJP-ruled state who wasquoted as saying, “If girls want freedom, why don’t they just roam around naked?”.

Surprisingly, or not so surprisingly, sanctioned character assassination of women and blaming the woman for sexual harassment and rape.

2.213. It is the nature of women to seduce men in this (world); for that reason, the wise are never unguarded in (the company of) females.

2.214. For women are able to lead astray in (this) world not only a fool, but even a learned man, and (to make) him a slave of desire and anger.

Verse 9.3

Sanskrit text, Unicode transliteration and English translation by Ganganath Jha:

पिता रक्षति कौमारे भर्ता रक्षति यौवने
रक्षन्ति स्थविरे पुत्रा स्त्री स्वातन्त्र्यमर्हति

pitā rakṣati kaumāre bhartā rakṣati yauvane |
rakṣanti sthavire putrā na strī svātantryamarhati || 3 ||

The father guards her during virginity, the husband guards her in youth, the sons guard her in old age; the woman is never fit for independence.—(iii).


The Vice Chancellor of Jawaharlal Nehru University, Santishree Dhulipudi Pandit while delivering the keynote address at the B R Ambedkar Lecture Series organised by the Union Ministry of Social Justice and Empowerment on Monday (August 27, 2022).said that the Manusmriti has categorised all women as “shudras”, which is “extraordinarily regressive”.

In the modern world, wealth takes different form of assets like listed /unlisted equity shares, debentures, derivatives of various types, luxury items like yacht, Car, airplanes and helicopters  in addition to gold,  animals land and buildings. Mutual funds are portfolios made of a variety of assets with varying risk dimensions. In pursuit of wealth & progress, people can rely on these asset forms to create niche opportunities for personal wellbeing and that of family.


One need to understand manusmrithi as something written at a time education was not allowed to girls generally. They were seen as objects of pleasure only in those societies at the time it was written. Therefore no need for taking it as it is literally to the modern  world. Today women have equal opportunities to get educated, vote, and get elected to houses of assembly/parliament. Investment decisions are taken by the elderly woman of the family in certain parts of the country. Ration card is issued in India in the name of the elderly woman of the family.

 Given the above traditions and ancient writings, financial planning is required for every family and for every member to meet their earthily life requirements irrespective of the gender. Whether father,  husband or son  take care of the women in the family financial planning is unavoidable.  In financial planning mutual funds come handy by making maturities suitable for any need.


Happy reading