Mistakes the Indians make that destroy their financial lives get details

What are some mistakes Indians make , that are destroying their financial lives

భారతీయులు చేసే కొన్ని తప్పులు ఏమిటి, ఈ తప్పులు వారి ఆర్థిక జీవితాలను ఎలా నాశనం చేస్తున్నాయి

1. Buying Insurance Policies for Investment Purpose

Have you invested your money in insurance plan to get a return in future?
Big mistake! Out of 100 people, 95 have made this mistake. Very few people understand the difference between term plan,
endowment plan, etc.

2. Not able to crack the credit card Mystery

Are you paying the minimum amount due on your credit card payment?
If yes, you are trapped in credit card mystery. On the other side, very few people really enjoy the benefits like free lounge access, buy one get one movie ticket, etc.

3. No idea about the power of compounding

Everyone has come across the formula of compounding but very few people really understand its power. This is the reason people do not start saving early and hence lose out on the power of compounding. Albert Einstein said that power of compounding is the eighth wonder of the world.

4. Buying stocks based on the tips without any knowledge

You will find every Tom, Dick and Harry giving stock tips over Facebook, Whatsapp and TV. Unfortunately, a lot of people fall in a trap of these people and invest money without any
knowledge. What is the end result? They lose everything!

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5. Becoming a victim of lifestyle inflation

Moving from 2bhk to 3bhk just because you have got a good hike, upgrading your car because you have got some bonus are some of the examples of lifestyle inflation destroying financial lives.

6. Buying things just becaue they are on discount

From Amazon’s “Great Indian Sale” to Flipkart’s “The Big Billion Days”, everyone is encashing on the weakness of Indians buying things just because it is on discount. Funny thing is now you will find such sales every other month.

7. Getting tempted to go for an exotic vacation just because someone put a post on Facebook and Instagram

Instagram and Facebook are introduced as Social Media Platform but they are actually destroying the entire social fabric. Facebook and Instagram are more of a marketing platform where people post

stuff just to get some likes and companies promote their product and services.

8. Spending a bomb on weekend parties

5 days work and 2 days party: This is the new culture in India. Pubs are jam-packed on weekends where people would spend a bomb on drinks. By the end of the month, they are left with no money.

9. No track of cash flow

Very few people keep a track of their expenses. Most of them just don’t know where the money is gone.

10. No emergent Budget

Not having any extra money in the case of an emergency results in embarrassing situations of borrowing money from friends and relative. Some people even break their investments and make a big mistake.

11. No medical insurance

People are losing out the lifetime savings just because they did not take medical insurance. One accident can shatter all financial dreams. Better be insured. Healthcare cost is rising and it is

impossible to manage it without insurance.

12. No Financial Plan

13. No diversification

14. Spending all the haard earned money on children marriage

15. Buying excessive gold only to keep it in the locker.

16. An extremely conservative approach with inverstment

17. Lack of clarity between asset and liability

18. Considering Frugal as sheap

19. Procrastinating investment decisions.

20. Spending a lot of money onon fancy stuff.

21. Lack of Patience.

22. Depending on others for investment decisions.