Indians Making Mistakes That Destroy Their Financial Life?

Purchasing insurance policies for investment purposes

Have you spent your cash in insurance plans for future returns? Big error!

This mistake has been created by 95 out of 100 individuals.

Very few people understand the difference between the term plan, the endowment plan, etc.

The credit card mystery

Do you pay the minimum amount due on your credit card payment?

If so, you're stuck in the mystery of your credit card.

On the other hand, very few people really appreciate the advantages like free lounge access, buy one get a movie ticket, etc.

No idea about the strength of compounding

Very few people really know its authority.

That's why people don't start saving early and lose the compounding energy.

Albert Einstein said the compounding strength is the world's eighth wonder.

Buying stocks based on tips without proper knowledge

You'll discover every Tom, Dick and Harry that gives stock tips on Facebook, Whatsapp and TV based on advice without any knowledge.

Unfortunately, many individuals are falling into these people's trap and investing cash without any knowledge.

What is the final outcome? They're all losing!

Becoming a lifestyle inflation victim

Moving from 2bhk to 3bhk just because you've got a nice hike, upgrading your car because you've received some bonus are some of the lifestyle inflation examples that destroy economic life.

Buying stuff just because they're on discount

From Amazon's "Great Indian Sale" to Flipkart's "The Big Billion Days," it's just because it's on discount.

Now you're going to discover such sales every other month.

Tempted to go on an exotic holiday just because somebody Post on Facebook and Instagram

Instagram and Facebook are launched as a social media platform, but they are actually destroying the whole social fabric.

Facebook and Instagram are more like a marketing platform for individuals to post stuff just to get some likes and businesses to promote their products and services.

Spending on weekend parties

Spending a 5 days work and 2 days party on weekend parties: this is India's new culture.

On weekends, pubs are jam-packed where people would spend a drink.

They're left with no cash by the end of the month.

No cash flow track

Very few individuals keep track of their expenditures.

Most of them simply don't understand where the cash is gone.

No emergency budget

In case of an emergency, having no additional cash leads to embarrassing circumstances of borrowing cash from friends and relatives.

Some individuals even make a big mistake and break their investments.

No medical insurance

People lose their lifetime savings simply because they have not taken medical insurance.

All financial dreams can be shattered by one accident. Better insure yourself.

Healthcare costs are increasing and without insurance it is impossible to handle them.

No financial plan

People don't understand why they need to save cash because their financial objectives are not known.

No diversification on the Investment

Some individuals would spend all their cash in immovable property, some would invest all the cash in gold, some would just maintain it in the pocket, some would spend all the cash in the stock market.

Very few individuals understand the way the investments are diversified.

  

Spend all the hard-earned cash on marriage for children

Thanks to our Hippocratic culture!

People are saving their whole lives just to spend all the cash on random relatives who only worry about the food and arrangements.

Buying excessive gold

Only buying excessive gold to maintain it in the Gold worth lakhs is held in lockers for use once or twice a year.

This leads to the blocking of the money and therefore no returns on it.

Traditional Investments

Traditionally, individuals have been risk-averse with an incredibly conservative attitude to investment.

They would have only an FD and live on an annual interest rate of 6–7 percent.

Some would simply hold the money at home.

Lack of clarity between asset and liability

Because it consumes fuel and has maintenance costs, having a vehicle is not an asset.

Its cost in the future will only depreciate.

Car is a requirement, but individuals spend a lot of cash and even take the loan over and above their budget to buy a luxury car.

Considering frugal as inexpensive

Many individuals are confusing with inexpensive economic spending.

An economist does not compromise quality, but does his studies well enough to purchase the product or service at the smallest price.

Procrastinate investment decisions

Investment decisions "I'm going to invest from tomorrow"

But the issue is that it never arrives tomorrow.

Spending a huge money on fancy stuff

A fancy vehicle, a fancy house, a fancy watch, a fancy holiday, a fancy holiday.

People want fancy things and willingness to pay a premium regardless of the value it produces.

Lack of patience

"I can't wait for my wealth to grow. In six months, I want to double my investments. I need to invest in the stock market. " Many people are losing their lifetime of savings because they don't have the patience to comprehend the investment choice and would blindly trust their investment to anyone.

Depending others for investment decisions

I don't understand anything about investment, depending on others for investment decisions.' Please handle my cash. "Unfortunately, with their hard-earned cash, many individuals are dependent on others.

That's why we have many self-proclaimed specialists offering advice on the stock market.

Not discuss about the money in the family

In Indian families, not discussing money issues in family discussions about cash is considered as a tabu.

No one is really talking about cash issues.

Greedy with investments

People blindly spend their cash in penny stocks, day trading, futures and options.

They lose all their hard-earned money ultimately.

What is the cause of the root? GREED

Wasting time on unproductive things

Instead of learning fresh things and increasing skills, individuals end up wasting time on social media and YouTube.

Lack of disciplined investment

Instead of spending what remains after investing, individuals spend what remains after expenditure.

This results in investment that is undisciplined.

Root Cause: Lack of personal financial management understanding.