Financial planning - Basic rule -8

Taking investment decisions :

In process of Financial planning is is important ot know how we are going to plan our investments, Many of the times it is a very difficult decision. But you have to take it because unless & until you invest your money you may not be able to grow it & may be keep on loosing value.

Let me to share you the truth which I came across talking with many individuals , You take lot of care & even fight for every rupee when it comes to earning however once it is earned the importance of money earned is not there . You don’t take due care of money which is earned to earn money for you the results are like ..............

 Big amount lying idle in Savings a/c since from few months.

 Investments are made with somebody’s free advice where the person was unknown & you don’t know whether he is a qualified to do so or not.

You don’t have any idea where your money is

You had given to broker who claimed to give you high returns but in result you lost all the money.

As per someone’s advice you invested in equity of specific company & since then the share has taken a down trend & one you sold had taken up trend.

 Your investments are creating pressure on you for committed investments.

Etc. etc………………………

Did any time you thought why this had happened ???????????

Let me tell you .

It is because of simple reason that you don’t know what you want from this investment , you invest without goals in Haphazard way. There is no structure at all.

No process is involved in selection .

It might be selected because one of the following reason.

Friends recommendation whose some relative may be an Agent

Advertisement.

Your relative is an Agent

What to do with money let’s do some investment ???

You are been chased by somebody

Tax saving etc etc…………..

So now why you are expecting these investments should help you in completing your financial goals when it don’t know what you expect from it ?

Surprisingly most of the individuals do not have any answer to this !

Let’s see how we can do it better !

You can build a good financial success if you have a plan in place .

It is a proven & accepted truth that if you have a plan then you can plan your strategies & the probability of achieving the goal is high.

Then what we have to do is to simply plan target for each and every rupee we invest & align the returns from it to the financial goals in life.

IF you agree to this may be some part also you should see our next post where We see it into more details !!!