We are undertaking an analysis of some of the mistakes of Indians that are destroying their
financial lives and please go through it so that you donot fall for it and lose your hard earned money.
Buying insurance policies for investment purpose: Have you invested your
money in insurance plan to get a return in future? Big mistake! Out of 100
people I have spoken, 95 have made this mistake.. Very few people
understand the difference between term plan, endowment plan, etc.
Not able to crack the credit card mystery: Are you paying the minimum
amount due on your credit card payment? If yes, you are trapped in credit
card mystery. On the other side, very few people really enjoy the benefits
like free lounge access, buy one get one movie ticket, etc.
No idea about the power of compounding: Everyone has come across the
formula of compounding but very few people really understand its power like
Mutual Funds, etc. This is the reason people do not start saving early and
hence lose out on the power of compounding. Albert Einstein said that power
of compounding is the eighth wonder of the world.
Buying stocks based on tips without any knowledge: You will find every
Tom, Dick and Harry giving stock tips over Facebook, Whatsapp and TV.
Unfortunately, a lot of people fall in a trap of these people and invest
money without any knowledge. What is the end result? They lose everything! We are a SEBI regd investment advisory services and we make sure that get value for your buck and this is the reason our
hot stock of the day is most trending stock in intraday. We even go a step further as we teach and train you in intraday trading free of cost.
Becoming a victim of lifestyle inflation: Moving from 2bhk to 3bhk just
because you have got a good hike, upgrading your car because you have got
some bonus are some of the examples of lifestyle inflation destroying
financial lives.
Buying things just because they are on discount: From Amazon's "Great
Indian Sale" to Flipkart's "The Big Billion Days", everyone is encashing on
the weakness of Indians buying things just because it is on discount. Funny
thing is now you will find such sales every other month.
Getting tempted to go for an exotic vacation just because someone put a
post on Facebook and Instagram: Instagram and Facebook are introduced as
Social Media Platform but they are actually destroying the entire social
fabric. Friends are jealous of each other. Most of them are just social
media friends. Facebook and Instagram are more of a marketing platform
where people post stuff just to get some likes and companies promote their
product and services.
Spending a bomb on weekend parties: 5 days work and 2 days party: This is
the new culture in India. Pubs are jam-packed on weekends where people
would spend a bomb on drinks. By the end of the month, they are left with
no money.
No track of cash flow: Very few people keep a track of their expenses.
Most of them just don't know where the money is gone.
No emergency budget: Not having any extra money in the case of an
emergency results in embarrassing situations of borrowing money from
friends and relative. Some people even break their investments and make a
big mistake.
No medical insurance: I have seen people losing out the lifetime savings
just because they did not take medical insurance. One accident can shatter
all financial dreams. Better be insured. Healthcare cost is rising and it
is impossible to manage it without insurance.
No financial plan: People do not know why they need to save money because
they don't know their financial goals.
No diversification: Some people would invest all their money in real
estate, some would invest all the money in gold, some would just keep it in
the locker, some would invest all the money in the stock market. Very few
people understand the right way of diversifying the investments.
Spending all the hard earned money on children marriage: Thanks to our
hypocritic society! People save their entire life just to spend all the
money on random relatives who only bother about the food and arrangements.
What is the topic of discussion at weddings? "Sharma ji ne to unki beti ko
car gift kari. (Mr Sharma has gifted a car to his daughter)". "Mehta ji ne
unki beti ko 50 tola sona diya" (Mr Mehta has gifted 500-gram gold to his
daughter.)
Buying excessive gold only to keep it in the locker: Gold worth lakhs is
kept in lockers only to be used once or twice a year. This is resulting in
the money getting blocked and hence not getting any returns on it.
An extremely conservative approach with investment: Traditionally, people
have been risk-averse. They would just have an FD and live on 6–7% annual
interest. Some would just keep the cash at home.
Lack of clarity between asset and liability: Having a car is not an asset
because it consumes fuel and has a maintenance cost. Its price will only
depreciate in the future. Car is a necessity but people spend a lot of
money and even take the loan to buy a luxury car over and above their
budget.
Considering frugal as cheap: A lot of people confuse economic spending
with being cheap. An economic spender does not compromise with quality but
does his research well enough to buy the product or service at the lowest
rate.
Procrastinating investment decisions: "I will invest from tomorrow". But
the problem is that tomorrow never comes.
Spending a lot of money on fancy stuff: A fancy car, a fancy house, a
fancy watch, a fancy vacation. People want fancy stuff and willing to pay a
premium irrespective of the value it generates.
Lack of patience: "I can't wait for my wealth to grow. I want to double
my investments in 6 months. I need to invest in the stock market." A lot of
people lose their lifetime of savings because they don't have the patience
to understand the investment option and would blindly trust anyone with
their investment.
Depending upon others for investment decisions: "I don't know anything
about investment. Please manage my money." Unfortunately, a lot of people
are dependent upon others with their hard earned money. This is the reason
we have a lot of self-proclaimed experts giving stock market tips.
Not discussing the money matters in the family: Discussions related to
money are considered as a taboo in Indian families. Nobody really discusses
money matters.
GREED
Wasting time on unproductive things: Rather than learning new stuff and
growing the skillset, people end up wasting time on social media and
YouTube.
Lack of disciplined investment: Instead of spending what is left after
investing, people invest what is left after spending. This results in
indisciplined investment.
Root Cause: Lack of knowledge about personal financial management!!
A real eye opener.. Give it a thought.
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