Welcome back this is the final installment
of my earlier blog where we discussed some excellent ways to lose hard earned
money. Further we will look to some out of box ideas to become miserable
financially.
Dream
House Syndrome: “Keeping all eggs in one
basket” is the worst kind of planning anyone can do. But now a day’s 80% are
doing the same. If you asked somebody where should I invest my money 90% would
suggest you to invest in Property and remaining mostly would suggest Gold! The
reason they feel these are safe as well as high return tool! But purchasing
house property is as important as pilgrimage nowadays. They try to squeeze
every available resource till the last drop to purchase house property. And
create unnecessary burden of personal loans, home loan, and loan from relatives.
And reality sector marketing is fanning the emotion like scarcity of land,
price rise Blah..Blah etc. If this is the scenario then I don’t understand Why
U.S. economy faced subprime issue? What about financial emergencies? Taking
loan in early stage of career can hamper the future growth. My question why a
person underestimate his own capability of earning? So if you want to suffer
greatly then it is my recommendation to buy property on loan in early stage of
your career.
Prepayment of Housing Loan: Housing loan today is the cheapest loan available in market. Most
people fail to encash the opportunity
available to them. Now majority of people question my intention as this heading
is contradictory to my previous one. Let me clarify, at first people die to
take home loan, once taken they try to prepay it. That means first start
digging a tunnel in wet land and then closing it from behind. Friends either
way you are creating trouble. If home loan is taken then retain it as it does
create opportunity in longer run. Just think if you are paying EMI of 45000
today than you will pay EMI of 45000 after 10 years also. But value of that
45000 at that time would be different if you consider inflation. If inflation
remain at 8% than value of 45000 would become 97000/- (approx.). But bank will
still ask you to pay same EMI. So if you really want to become poorer then take
two step First take home loan beyond capacity then prepay it within 5-7 years after
taking it.
Yellow
Fever Syndrome: From past three weeks Indian
hit by some different kind of epidemic. Yellow fever alias purchase as much as
gold as possible reason being gold rates is declining. Even we get atleast 4-6
query daily from our client whether we should buy some gold! One hilarious
incident I like to share here to better understand this phenomenon, one of my
friend expecting baby next month. I got his call at 11.30 pm night after
exchanging pleasantries he shoot straight question to me, Should I buy Gold?
Before I can answer (He knows I always opposed the idea in gold/jewelry as
investment) he give me reason , according to him as he is expecting baby next
month there may be chances God will bless him with baby girl!!!!... “So” I
asked after small pause…and his answer is, in this case he required saving for
her marriage! Baffled with his imagination I can’t say a word. The reason why I
shared this as just a month before he don’t have money for purchasing term
Insurance which is just costing him 12000/-. So my friends you are right invest
in gold, purchase as much jewelry you want.
No
disciplined Financial Plan: Disciplined financial planning not only helps
you in long run, it can also help to solve 80% of your life’s problem. For most of the people financial planning is
‘to seek free advices from so called experts and follow it religiously’. When
we are not alike in taste, size, color, in thinking, in dreaming, then how our
financial decisions should? Many people don’t know why actually they are
investing in particular fund? They just do because their friend already booked
handsome profit in it. Or some of them just doubled their investment within no
time! Most people want enormous returns without capital loss. My question to
these people is that possible? If answer is still yes then congratulation my
friends you are the victim of big scam. For above kind of people I recommend,
purchase a 1 cr. lottery ticket monthly, fortune will shine upon you some day(Because
indirectly you are doing same).
Inclination
towards freebees: Everybody
knows that nothing is free in this world still our inclination towards freebees
is well known. Recently one of my friend break an investment (created for Child
education) for purchasing a car as he got an advise that this is the best time
to purchase because every company provide large amount of goodies with every
purchase. Shocking!!! But ironically true that we are ready to loose long term
fortune for short term peanuts. Footfall tripled whenever there is a “SALE” in
any mall. And they also aggressively captioned like “Once in a lifetime
opportunity” or “Now or Never” etc. etc. As per my interpretation of such
caption is either seller is going to bankrupt or buyer will going to die after
this sale. In any case both are not true.
Everybody toiled hard to earn better in this world but most of the cases
earned money loses its value after earned. Expenses without planning are not
only hampering the correct saving equation but also making you poorer day by
day.
Dear friends here I am
concluding my blog. This is the just a small effort to bring you all nearer to
harsh reality in your financial journey. I hope you all take better use of the
information.
Again
Thank you, see you all in some time……About the author : Hitesh Paliwal, is a Financial risk management consultant with ARB financial consultants , PUNE. info.arbfin@gmail.com or Cell : 08551905999
