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. 

Comments

Popular posts from this blog

Why your Financial Plan is always Work in Progress?

Ever heard someone saying, this is my last month in the Gym, after that there is no need for me to workout ever again…I will stay fit for the rest of my life without any fitness regime. No one can retain the perfect physique forever without exercise. It is always a constant effort to stay at the desired level for almost anything that you think of. You cannot be a great chef without trying out new recipes, you cannot be a great marketer without adapting to new marketing strategies, you cannot be a great fashion designer without adapting your fashion sense towards the trending styles. Leave all of this, you even cannot even think of becoming a good parent if you don’t change from old tricks to new methods for upbringing this generation kids. If you have to upgrade your act with every other thing in life, then how your investments could be any different.
The Financial Planning Process has 6 broad steps with the last one focussing on the importance of monitoring and revision of the plan …

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…