Important Thread🧵on common #Financial Mistakes which people normally commit.
Credits: CA Govind M Chandak.
#WAFwd #InvestmentPlanning #Investing
Avoid these mistakes for better financial future.
@dmuthuk @Vivek_Investor @VidyaG88 @caniravkaria
🙏 RT to maximize reach🙏
❌ Buying Insurance Policies for investment purpose.
Always go for #TermInsuance
❌ Not able to wisely use Credit Card ...
As always pointed out by @dmuthuk sir & @FI_InvestIndia avoid #CreditCard for purchasing unnecessary stuff on credit.
❌ No idea about Power of Compounding.
The earlier you understand concept of compounding, better it is for you financially.
❌ Buying stocks on #tips without any knowledge or research.
People should try to learn #FundamentalAnalysis & #TechnicalAnalysis.
❌ Becoming a victim of lifestyle inflation.
People should learn about #frugalliving from legendary investor #WarrenBuffett & many others.
❌ Buying things just because they are on discount ...
Remember @WarrenBuffett's quote - "If you buy things you don't need, you will soon sell things you need."
#Investing
❌ Tempted for exotic vacation looking at someone else post on #Facebook & #Instagam
Read it carefully 👇
❌ Spending a lot on weekend parties.
I am not against partying .... Just saying to always remember 👉 "Don't save what is left after spending; spend what is left after saving.”
❌ No track of #cashflow
It is very important to keep a regular check on your income, expenses and savings.
❌ No Emergency budget
Always have an emergency fund.
Many people learned this simple lesson hard way during #covid pandemic #lockdown
❌ No Medical Insurance
People can loose their lifetime savings in just a single medical emergency.
So always buy adequate medical insurance cover.
❌ No financial plan
Always remember - “If you fail to plan, you are planning to fail!”
#FinancialPlanning
❌ No diversification
Remember that too much diversification is also a bad thing.
❌ Spending entire life's savings in children's marriage
Such spending can easily be curtailed and funds can be utilized in a better manner.
❌ Buying gold only in form of jewelry which often lies idle in locker
People should rather invest in #goldbonds or #GoldETF.
❌ Extremely conservative approach towards investing.
Not advising anyone to take too much of risk, but take risk depending on your capacity to handle it, both emotionally and financially.
❌ Lack of clarity between #asset and #liability
Read the example below 👇 to understand this difference clearly.
#Investing #Finance
❌ Considering #Frugal as Cheap
❌ Procrastinating Investment Decisions
Most deadly mistake.
❌ Spending a lot on fancy stuff.
To save money, one should learn to differentiate between #Needs and #Wants.
❌ Lack of #Patience
Patience is required to grow wealth as in reality there exist no #quick #rich scheme anywhere in this world.
Lack of #patience is No.1 reason why over 95% people loose money in #StockMarket and only 2 or 3 % people (who have patience) create great wealth.
❌ Depending upon others for investment decisions.
I would advice such people to at least learn basics of Investment and then listen to experts like Financial Advisors.
Beginners can read some basic books.
❌ Not discussing money matters in the family.
I would suggest discussing about savings, importance of money, etc with kids when they are young.
I do it with my 5 year old daughter.
#FingeeKid 👉@iam_balaji & Prakrit Ke Pappa @FI_InvestIndia can comment better on this for sure
❌ Getting too Greedy with Investments
avoid being too greedy. avoid speculation, FNO, margin trading, leveraged positions, especially if you are newbie.
❌ Wasting Time on Unproductive Things ...
Rather than wasting time, one should utilize that time to learn something new...
Even today, @WarrenBuffett spends most of his time reading...learning new things.
❌ Lack of disciplined investment.
Lack of discipline is an important reason why only few people create great wealth.
Invest in SIP for 10 - 15 years and see the magic of disciplined investing ....
@dmuthuk @FI_InvestIndia @RJGyanchandani @invest_mutual can comment better ...
❌ Root Case is most of the above mistakes in lack of #knowledge.
Read some good basic books on investing and financial literacy to start with.
#FinancialLiteracy #Investing #InvestmentPlanning
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