7 Things You are Doing Wrong with Your Money
/2015-10-26 10:58:36
Shweta Jain

We are bombarded with things to do with our money. What we do not discuss is what are the things we are doing wrong when it comes to money. Now these may be small things, but might have a big impact. Simply follow this checklist and you’ll be able to manage your money better.

1. Start tomorrow

Every time you think of saving or investing, you end up procrastinating. It is always tomorrow. Change this toxic habit today.

2. Invest in something that your friend/colleague has invested in

Now, just because a friend has invested in something doesn’t mean you should invest in it. Your friend may be single and you might have a family or vice versa. One man’s medicine might be another’s poison.

3. Not seeing the complete picture

“What is the best mutual fund?” is a question I get asked at various forums. My answer – for whom? What time period? What risk category? The idea of choosing the best fund is all too popular where as the idea should be “what should I do to meet my goals?” Before you make any long term investments, put down your goals and then plan accordingly.

4. Believe that it is too early to plan

“I am too young to plan about my future” attitude isn’t going to take you too far. You will always have an excuse to delay planning- too young, no money, too many commitments etc etc. Start today irrespective of the age/stage you are in. Warren Buffet started investing at the age of 12 and his only regret is that he should have started sooner.

5. You are either scared or excited about equities

Basically being emotional about an investment option is not the right thing to do. If you have to make investments for the long run (read 5 years+) then equities might not be a bad idea. However, you need to regularly review and research your options before investing.

6. Invest for tax planning

While tax planning is a great incentive to save, choosing the right option here becomes very important. While most invest in insurance policies just so that they can get the receipts, it might have negative impact in the long term, if you have not considered your goals before investing. Ideally take a term cover to protect your loved ones. Your investment for tax saving could be in ELSS, PPF or other optionsdepending on your requirement.

7. Taking loans for expenses

Credit card loans and personal loans charge the highest rate of interest and hence should not be used. Buying appliances or taking vacations on EMIs is a strict no; you must also ensure you pay the complete credit card bill and not just the minimum amount due.

These guidelines should give you a good sense of direction on where and how to invest your money. If you still have any doubts regarding money management, just reach out to the expert with the heart and we’ll sort you out.