Skip to main content

Let’s share our financial mistakes This 2017



How many times have we taken an insurance policy because our uncle was the agent. Or how many times have we signed on a document without reading it fully just because the one taking our signatures was a close person. But sometimes sooner or later, we had to pay some price for our stupid financial decisions. This post is all about admitting our financial disasters and learning from them. I want all of us to start this 2017 by consciously agreeing to the wrong we did in the previous year and moving forward with a lesson learnt. Let’s begin with myself – Me despite being a Financial Planner myself, have done a couple of financial mistakes. The worst one being not saving during the initial years of my career. I didn’t start with a great six figure salary, it was nominal. Still, I could have saved with whatever I was earning, but I was so much into spending what I thought was mine with nobody to question me. And Yes, I proudly admit being a spendthrift to the level that I bought a Car with my first Bonus money. It was not needed, was a depreciating asset, and even if I wanted one I had a choice to buy pre-used car. But No, I wanted to spend what I had earned. My stupid without thinking spending stopped only when I saw my husband saving, and appreciating himself on his savings. And yes, then I did all the mathematics for my retirement needs, and after knowing the amount I need to save for my healthy retirement, I at least started saving that much.

Even our extravagant shopping comes under the Category of Mismanaged Money/Finance. With the advent of Online Shopping, everybody has turned into one shopaholic. We are buying things we don’t need or probably won’t use ever. Just because shopping has become so convenient, we feel that urge to buy at every occasion. So, our budgeting skills have already gone for a toss. As per PwC’s report by CII, headed as ‘e-commerce in India – A Game Changer for the Economy’, number of online shoppers will grow to 220 million by the year 2020 from 140 million in 2018, all due to ease of buying and our changing shopping habits.






As per S&P survey on financial literacy, over 76% Indians lack understanding in key financial concepts. Financial Literacy means that people have the knowledge to understand key finance concepts like inflation, risk diversification, compound interest, and numeracy.  Anyone who knew 3 out of these 4 concepts was termed as Financially Literate. It is hard to admit that 76% of us were not aware of fundamental financial concepts.

It is my sincere request to all of you who gets some time to read this, please share your financial mistakes so that all can learn about the possibilities of the mistakes when it comes to Personal Finance. And we can all save each other in a Country where there are no Health and Retirement Benefits available to majority of us. Only our Financial Prudence will enable us to live happily without worries of future.



Charu Hastir, CFPCM is founder of http://www.theriteplan.com/. Rite plan is an online financial planning portal created to achieve a single objective of providing easy and Do It Yourself Financial Planning to netizens. Rite Plan is wholly owned by Tikkun Olam Financial Planning Services LLP. Please visit: https://theriteplan.com/index.php?route=common/home/

Comments

Popular posts from this blog

Is everybody else richer than you?

Our neighbours are going on a vacation again…
OMG! How many times he changes his mobile phone…
What! She bought a new car…

I am feeling stuck
You open your Facebook account and see most of your friends enjoying, having fun time, going on long trips, showing off their newly bought car as if it is just a toy car. In the end, you log out from Facebook wondering what on earth are you doing? How do they get to spend so much of their money while you are entrapped in this vicious saving cycle – saving for your Retirement, saving for your child’s education, paying EMI for that Home loan of yours, etc. etc.
What we forget to understand is that there are sides of people’s life which we can’t see. We are only seeing the happy parts – thanks to Social Media. We don’t see the hardships people undergo to possess what they have, or worst their wrong money decisions and its impact on their life in the long run.
PEER PRESSURE Peer pressure is the direct influence on people by the peers (people who are pa…

How to set your Long Term Financial Plan?

Let me start this blog with a question? Do you dream? I’m sure all of us have dreams some fulfilled, some yet to be fulfilled. How do you hope to accomplish the unfulfilled dreams? These dreams do surely need financial aid in the form of savings. And for that you have to think about your financial future. A survey done by Aviva India reflected that Indians lack the discipline to create robust financial plans to secure their future hence exposing them to uncertainty.
If you don’t have a financial plan, it would be difficult to make your money work for you. Without proper planning and goal, your money in the bank account will yield no results. Here are a few steps to help you build a financial plan.
I.Financial Assessment
You need to know where you stand in terms of your finances. Your current assets, liabilities, savings, and your financial goals. For making a picture, you need to have the frame first. Similarly, for building a financial plan you need to have a fair idea on your curren…