Thread by @AnkitGalaStocks

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