International Day of Peace Special: What Role Does Money Play in
Peace of Mind?
Venkatesan P
Founder,
PAISACARE FINANCIAL SERVICESi
Phone:
98404 22744, Arn
315388
Does Money Bring Comfort… or Peace
of Mind?
In a small town, two friends named Ramesh and
Suresh lived nearby. Both worked for the same company and earned almost the
same salary.
But there was one major difference between
them.
Ramesh had no savings. As soon as his salary
arrived, it went towards household expenses, loan repayments and even borrowing
for the following month. Whenever an unexpected medical expense arose, he would
immediately become anxious.
Suresh, on the other hand, had developed the
habit of saving a fixed amount every month, even when his salary was much
lower. He maintained a separate emergency fund. He also had life insurance and
health insurance. He consistently invested for his children’s higher education
and marriage, as well as for his own retirement.
One day, while the two friends were talking,
Ramesh asked:
“Both of us earn almost the same salary. Then
how are you able to live with so much peace of mind?”
Suresh smiled and replied:
“It’s not because I have more money. It is
because I am prepared for situations when I may not have enough money.”
This simple conversation explains the
relationship between money and peace of mind.
Peace Is More Than the Absence of
Conflict
September 21 is observed worldwide as the International
Day of Peace.
Peace is not merely about preventing wars or
conflicts between nations. Peace in the lives of individuals is equally
important.
If a person constantly worries about money,
struggles with loan repayments and remains anxious about the future, there may
be no visible conflict outside, but there may be little peace within.
That is why financial security at the family
level can become an important foundation for personal peace of mind.
How Can Money Contribute to Peace of
Mind?
Money alone cannot buy peace of mind.
However, having adequate financial security can reduce many of the
uncertainties and fears associated with everyday life.
First, an emergency fund. Job loss, sudden medical expenses, home repairs and
other unexpected situations can arise at any time. Maintaining an emergency
fund sufficient to meet at least six months of essential expenses can provide a
significant sense of financial security.
Second, control over debt. Borrowing beyond one’s repayment capacity can
seriously affect a family’s financial and emotional well-being. Continuously
carrying high-interest personal loans or credit card balances can increase
financial pressure.
Third, adequate life insurance. The earning member of a family should have sufficient
life insurance so that the family’s financial needs can be protected in the
event of an untimely death.
Fourth, health insurance. A major medical expense for one family member can
wipe out years of savings. Adequate health insurance can reduce the financial
anxiety that often accompanies illness and hospitalization.
Fifth, retirement planning. The question, “What will I do after I stop working?”
can create considerable stress if there is no clear answer. Starting retirement
investments early in life can help reduce this uncertainty.
How Much Money Is Enough for Peace
of Mind?
There is no single answer that applies to
everyone.
A monthly income of ₹40,000 may be sufficient
for one person, while someone earning ₹2 lakh a month may still experience
financial stress if expenses are very high.
Therefore, peace of mind is determined not
merely by the level of income. The balance between income and expenses,
savings, investments, insurance and debt levels also matter.
|
Financial Habit |
Benefit to Peace of Mind |
|
Monthly
income and expense planning |
Provides
clarity about where money is going |
|
Emergency
fund |
Reduces
anxiety about unexpected expenses |
|
Health
insurance |
Provides
protection against large medical expenses |
|
Adequate
life insurance |
Protects
the family’s financial future |
|
Controlling
high-interest debt |
Reduces
monthly financial pressure |
|
Regular
savings |
Builds
confidence about future needs |
|
Long-term
investments such as mutual funds |
Helps
create long-term wealth |
|
Retirement
planning |
Reduces
anxiety about life after employment |
Market Ups and Downs and Peace of
Mind
Peace of mind is also important for
investors.
For those investing in the stock market and
mutual funds, constantly watching daily price movements can create unnecessary
anxiety.
As of September 11, 2026, the Sensex stood at
74,781.76 points, while the Nifty 50 stood at 23,398.10
points. Both indices experienced declines during that week. Gold,
silver and other investments also witnessed price fluctuations.
The important lesson is this:
We should not measure the peace in
our lives based on the daily movements of the investment markets.
If our investment horizon is 10 or 20 years,
we should not panic simply because the market has declined over a week.
Instead, we should focus on our financial goals, investment horizon and ability
to take risk.
Money Is a Tool, Not the Purpose of
Life
Money is essential for living a secure life.
But if accumulating money becomes the sole purpose of life, peace of mind can
once again disappear.
“I need to earn a little more.”
“I need a bigger house.”
“I need to invest more.”
A person who keeps running after the next
financial milestone may fail to experience peace of mind, regardless of how
much money has already been accumulated.
At the same time, lacking basic financial
security can also disturb peace of mind.
Therefore, the right approach is to use
money for life rather than dedicate life entirely to money.
Financial Freedom for a Peaceful
Life
Financial freedom does not necessarily mean
having crores of rupees in the bank.
It means having sufficient financial strength
to meet basic needs, handle unexpected situations and work towards important
future goals.
For this, every family should make it a habit
to save a portion of its income first, obtain appropriate insurance, control
high-interest debt and continue making investments suited to its long-term
goals.
Instead of asking only, “How much do
we earn?”, we should also ask:
“How securely can we live?”
Five Financial Commitments for a
Peaceful Life
On this International Day of Peace, each of
us can make five simple financial commitments.
First, let us reduce unnecessary expenses.
Second, let us build an emergency fund covering at least six
months of essential expenses.
Third, let us ensure adequate health insurance and life
insurance for our family.
Fourth, let us continue making disciplined investments for
our long-term goals.
Fifth, let us avoid losing our peace of mind over daily
market fluctuations and instead remain focused on our long-term financial plan.
In Conclusion…
When we talk about world peace, we should not
forget the peace within our own homes.
A family without constant arguments about
money, with fewer worries about the future and with the ability to handle
unexpected expenses enjoys an important form of peace.
Money cannot directly buy peace of mind. But
proper financial planning can free us from many money-related worries and
create a path towards greater peace of mind.
On this International Day of Peace, let us
work towards creating “financial peace” in our families along
with peace in the world.
Because being able to live without constantly
worrying about money is itself a form of wealth.
For
more details and invest
Founder, https://paisacare.in
Mr.
Venkatesan P
Founder, PAISACARE FINANCIAL SERVICES, Chennai
Phone number: 98404 22744
Arn 315388
E Mail id: venkat.profit@gmail.com
Web Site: https://paisacare.in
Mr. P.Venkatesan had a 30 years’
experience in Financial Services (Life Insurance, Health Insurance, Mutual
Funds etc.)
Office
Address:
Paisacare Financial services
No 3B 2nd Street, Sivanandha Nagar
Kolathur, Chennai -600 099
Read articles written by Mr. Mr. P.Venkatesan in Nanayam Vikatan, a leading personal financial management magazine.
Disclaimer: Mutual Fund investments are subject to
market risks, read all scheme related documents carefully. The past performance
of the mutual funds is not necessarily indicative of future performance of the
schemes.
