Five personal finance lessons to learn from ISRO’s Chandrayaan-3 mission

• Whether reaching the moon's surface or financial milestones, both arise from a balanced combination of preparation, and the willingness to pursue long-term goals.
  
• Just like it was done for Chandrayaan-3 it is important to plan for contingencies and set up risk mitigating measures.
  
• Chandrayaan-3 demonstrates that success often requires weathering challenges and staying the course.
  

All of India rejoiced when Chandrayaan-3 made a successful landing on the moon’s South Pole on August 23 at 6.04 pm IST. Not only did this feat make Indians proud, congratulations poured in for this remarkable feat from all corners of the world.

Like from major scientific achievements, there are lessons for the common man from this extraordinary accomplishment. We take a look:

Be prepared to play a long time game

The success of the Chandrayaan-3 mission serves as a significant milestone in India's space exploration and highlights the value of a long-term approach. Chandrayaan 1, India’s first moon mission was the result of decades of hard work by the Indian Space Research Organisation (ISRO) scientists.

Similarly, in personal finance, successful wealth creation often hinges on sustained efforts and patient investment strategies. The mission's journey echoes the slow yet rewarding process of accumulating wealth over time. Building financial security and prosperity requires disciplined, consistent efforts. Investors should recognize that the path to financial success is paved with prudent, long-term decision-making and a dedication to their goals.

Persistence is key

Chandrayaan-3's role in India's space trajectory is symbolic of the value of a patient, long-term approach. Likewise, the world of finance teaches us that substantial wealth is created through consistent, disciplined investing over time. Just as the mission's trajectory unfolded gradually to reach its destination, investors should recognize that financial success is achieved by navigating a path of prudent decisions, commitment, and a focus on long-term objectives.

Chandrayaan-3 demonstrates that success often requires weathering challenges and staying the course, just as successful wealth accumulation requires the stamina to ride out market fluctuations and maintain a commitment to strategic investments. Both journeys share the same principle: achievements, whether reaching the moon's surface or financial milestones, arise from a balanced combination of preparation, dedication, and the willingness to pursue long-term goals.

Be ready for contingencies

ISRO adopted a 'failure-based design' strategy, prioritising scenarios of potential failure to safeguard the mission against challenges and secure a successful and safe landing. “We have also made sure that if two of the engines don’t work this time also, it will still be able to land. So the whole design has been made to make sure that it should be able to handle many failures, provided the algorithms work properly,” said ISRO chairman S Somanath.

Similarly, when it comes to your personal finances it is important to plan for possible contingencies and set up risk mitigating measures in place.

There are two important things you need to do to be prepared for an emergency situation. The first is to create an emergency fund, which essentially entails keeping six months of your expenses in liquid form, so that you can use it in case of job loss or need of funds in an emergency. The other is to have adequate health cover so that you are protected in an event of hospitalisation, which could set you back by several lakhs. FInally, life insurance, which protects your family in case of an eventuality is also important.

Harness the power of compounding

Chandrayaan-3 did not reach the moon in the same way as spacecrafts from other nations like the US and Russia have done. Instead it utilised the Oberth effect by initially circling Earth in an elliptical orbit. As it gained velocity at its closest point, this energy was harnessed to propel the spacecraft to the moon's orbit effectively. The Oberth effect is a principle in space travel where the efficiency of a propulsion system increases with higher speed in a gravitational field. Chandrayaan-3 thus used the power of gravity to reach the moon in a cost effective and efficient manner.

The Oberth effect can be likened to the compound interest. In the same way, the power of compounding plays a big role in wealth accumulation. When you earn interest on both the initial principal and the accumulated interest, your wealth grows exponentially over time. This compounding effect leads to accelerated growth, as the interest you earn generates more interest.

Manage your risks when nearing retirement

Soft landing, a pivotal but challenging aspect of moon missions, draws a parallel to retirement planning's necessity for stability. Chandrayaan-3's advanced landing gears point to the significance of minimising volatility during crucial phases.

Just as the spacecraft's landing gears were enhanced to absorb shock loads, individuals nearing retirement should focus on preserving their savings. Prioritising capital preservation over aggressive growth becomes vital to ensure financial security during retirement years. As retirement nears, a balanced allocation between stable options like debt and a gradual reduction in equity exposure can minimise financial shocks.