The Finance Nest

Murphy’s Law: The more you fear, the more likely it’s going to happen.

Kidlin’s Law: Write down the problem clearly, and it will solve half the problem.

Gilbert’s Law: Your task is your responsibility; find the best way to do it.

Wilson’s Law: Prioritize learning and knowledge, and money will follow along.

Falkland’s Law: If it’s not important to decide anything, don’t decide.

Philosophy is often seen as a different subject from finance and money, but how we feel and decide has a greater impact on our wealth creation. Only looking at numbers does not decide the future of your financial security. The psychological and behavioral pattern we follow can lead to accumulation or destruction of wealth.

So, I took some time to analyze the old philosophy laws that can be applicable to managing our finances also.

It was surprising to see that all these laws give a very clear understanding of how to manage money. When looked at closely, they give a very different perspective on personal finance.

I hope you would find these laws interesting enough to take note of.

1. Murphy’s Law – “Anything that can go wrong will go wrong.”

Behavioral Insight: Fear amplifies risk.
Personal Finance Link: The more you fear a market crash, job loss, or inflation, the more likely you are to make panic-driven financial decisions—like pulling out investments prematurely, avoiding equity altogether, or hoarding cash.

Real Example:
In March 2020, when COVID-19 hit, many panicked and sold their mutual funds or stocks at a loss. Those who stayed invested saw their portfolios recover and grow substantially within months.

Lesson:
Fear is normal, but your reaction to it determines your financial outcome.

• Build a solid emergency fund to handle real risks.
• Stick to your investment strategy despite market noise.
• Avoid reacting emotionally to short-term volatility.

“Your fear shouldn’t drive your financial steering wheel—your plan should.”

Kidlin’s Law: “If you can clearly define a problem, you’re halfway to solving it.”

Behavioral Insight: Clarity creates direction.
Personal Finance Link: Vague goals like “I want to save more” or “I need to invest soon” lead to procrastination and inaction. Specificity converts dreams into action plans.

Real Example:
Compare these two goals:

• “I want to save money.”
• “I want to save ₹5 lakhs in 24 months to use as a down payment for a car.”

The second goal invites budgeting, EMI calculators, and SIPs. The first gets lost in excuses.

Lesson:

• Write down what you want, why you want it, and when you want it.
• Break goals into smaller monthly targets.
• Use tools like budgeting apps or goal-based SIPs to stay on track.

“If you don’t name your financial destination, you’ll keep wandering.”

3. Gilbert’s Law: “It’s your job to find the best way to do the task.”

Behavioral Insight: Responsibility is non-transferable.
Personal Finance Link: Whether it’s planning for retirement, paying off debt, or investing in the stock market—no one will care about your money more than you do.

Common Pitfall:
People often say:

“The bank didn’t guide me properly.”
“My cousin said this insurance plan was good.”
“I trusted the agent—he misled me.”

Lesson:

• Take ownership. Don’t delegate decisions blindly.
• Learn about financial products before signing.
• Be your own CFO (Chief Financial Officer).

“Blaming others doesn’t repair the damage. Learning does.”

4. Wilson’s Law – “Prioritize intelligence, and wealth will follow.”

Behavioral Insight: Knowledge compounds like interest.
Personal Finance Link: Chasing high returns without understanding is a trap. People jump into crypto, NFTs, or random stocks with zero research—then lose money and blame the market.

Real Example:
Those who regularly read about finance, attend webinars, or learn about tax planning tend to make smarter long-term decisions, build wealth steadily, and avoid traps like Ponzi schemes or mis-sold insurance.

Lesson:

• Read a finance book every quarter.
• Follow credible financial educators or channels.
• Understand the why behind every investment, not just the expected return.

“Your income may be limited, but your learning isn’t—and it pays the highest interest.”

5. Falkland’s Law: “If it’s not necessary to make a decision, don’t make it.”

Behavioral Insight: Unnecessary action creates unnecessary problems.
Personal Finance Link: Many people tinker with their portfolios every time the news changes. Constant reallocation, buying/selling based on emotion, or switching funds destroys long-term wealth.

Common Mistake:

Checking your portfolio daily
Selling funds because of short-term losses
Buying into hype without strategy

Lesson:

• If your financial plan is built on fundamentals, leave it alone.
• Review finances quarterly or semi-annually, not daily.
• Focus more on consistency than activity.

“Sometimes, the smartest money move is to stay still.”

Conclusion:

Numbers are important—but numbers don’t move without behavior.
Your mindset, discipline, clarity, and emotional control will determine your financial success more than any investment instrument.

These timeless laws aren’t just philosophical—they’re strategic tools. Integrate them into your financial habits, and you’ll not only manage money better—you’ll manage life better.