Skip to main content

2018: 5 Money Lessons we need to unlearn



I. FD’s are the Best Investments
Post Demonetisation Banks have reduced their deposit rates. Following which Fixed Deposits now are not an attractive debt investment option.
Moreover, If you fall in 30% Tax Bracket then the return which you will earn from your FD will fall further.
II. Time the Markets

They Say, Time and Tide waits for none. Well, you can say the same for equity markets as well. So, don’t try to time the market, stay invested for the long term.

*Sensex moved from 26595 to 34056 in the year 2017

III. Save only during Tax saving season
As Benjamin Franklin rightly said, “You may delay, but time will not.”
You should not save only in the Tax saving season, you should invest systematically with discipline at regular intervals. This way you can average out your returns.

IV. Rely on your Company Health Insurance
Most of us don’t take Personal Health Plan, thinking that our Company covers us. But have we ever thought of a scenario when we are out of job, or when we are old and retired with some ailment AND WITHOUT ANY HEALTH INSURANCE because no one will insure us in our old days.

V. Not having a Consolidated Portfolio
We get so unorganized with our finances, we keep one document in one cupboard and another would be lying somewhere in the drawer. Worst of it, we have our mutual funds in different demat accounts which makes it impossible to consolidate the portfolio.
One should have a consolidated portfolio to see the correct picture. 

Labels:

Comments

Post a Comment

Popular posts from this blog

What to do when Stock Markets suddenly go up?

“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” – Peter Lynch

This May we have seen BSE SENSEX moving from the levels of 39,031 on 30th April to 37,090 on 13th May and then back again to 39,352 on 20th May. Such volatility in such a short period makes us doubt our investment decisions and questions our long-term plan of staying invested in the equities. This Market volatility has the power to change our investment strategies and at times even question it. Sometimes we think that we have missed a golden investment opportunity and on other times we assume that we have invested at a very bad time. At the very best it keeps us confused on our next steps.
John Maynard Keynes has rightly said that "Markets can remain irrational for longer than you can remain solvent." But how should we treat our investments when we come across such turbulent times and what is the right course…
Post a Comment
Read more

Union Budget and Your Financial Plan?

Honorable Financial Minister Piyush Goyal presented this year’s Interim Budget on 1st February 2019. Every Year, on the day of the budget announcement, you can see almost every individual glued on to their Television or mobiles to check the budget updates with much excitement. Sometimes the Budget announcements cheer us and sometimes they make us sad as we think that there are not many benefits being offered for individuals in our tax slab.

Budget is also referred as Annual Financial Statement as it contains an extensive account of the Government’s finances i.e. Government’s revenue and expenditure for the fiscal year. How relevant is this budget when it comes to our personal financial savings? Should we wait for the Budget to be announced and then start our investments or should we do our investments without any relevance to the Budget? Let’s discuss this in detail.
Budget helps in Tax Planning

Budget surely helps in planning the taxes for the next financial year. Budget is presente…
Post a Comment
Read more