In contemporary times, financial planning has become so imperative that no one with the means and a right frame of mind would think of giving it a miss. Be it for a child’s education, retirement or the auspicious occasion of marriage. But most people, in their endeavor make a few common mistakes. If not for those, they would be far better off then what they find themselves today.
The advent of plastic money has made the palm of an average man far too greasy. While making a purchase through the credit route, most people forget that for the instant gratification of their indulgences what they are trading away is the capability of saving and investing for the said period. Lack of financial education in the woman folks of the household is another impeding factor. If they are financially educated and involved in the decision process, the journey would be far smoother than going all the way solitarily. Not only that, such measure would also inculcate the habit of saving among the children’s from a very early age.
Another myth that needs to be busted is the oft-repeated gospel that young people need to take risk by investing in the stock market. There is some truth in it, but it sets a dangerous precedent. The thumb rule of investing is to have a balanced portfolio. During younger days one can have a substantial amount of equity in their portfolio but should be balanced with decent amount of debt instruments.
Unrealistic expectations from the stock market as well as mutual funds should also be kept in check. These are but a few mistakes which need to be avoided at all cost.
The advent of plastic money has made the palm of an average man far too greasy. While making a purchase through the credit route, most people forget that for the instant gratification of their indulgences what they are trading away is the capability of saving and investing for the said period. Lack of financial education in the woman folks of the household is another impeding factor. If they are financially educated and involved in the decision process, the journey would be far smoother than going all the way solitarily. Not only that, such measure would also inculcate the habit of saving among the children’s from a very early age.
Another myth that needs to be busted is the oft-repeated gospel that young people need to take risk by investing in the stock market. There is some truth in it, but it sets a dangerous precedent. The thumb rule of investing is to have a balanced portfolio. During younger days one can have a substantial amount of equity in their portfolio but should be balanced with decent amount of debt instruments.
Unrealistic expectations from the stock market as well as mutual funds should also be kept in check. These are but a few mistakes which need to be avoided at all cost.
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