Financial Mistakes: Everyone of us wants to be financially self -sufficient. Investment is the best way for this. But, many times we make such mistakes in unknowingly and unknowingly that there is loss instead of benefit in investment.
Let us know what to take care of while investing and what should be avoided, so that a big fund can be made.
Do not fall into the messaging group
Rapidly growing ‘stock tips’ groups on social media platforms attract many investors towards Penny Stocks. These are shares that cost very low. Like some money to 15-20 rupees. Fraud type people on groups like Telegram and WhatsApp will tell that these stocks will give manifold returns in a few days.
Now as an investor bought shares of ₹ 50,000 at a price of ₹ 2. It may be that the share price increases for the next two-four days. But, this will only be ‘paper’ profits, until you sell it. But, in the second case, he falls to ₹ 0.50, you will lose 75% directly. The value of your investment will come down to ₹ 12,500. There is also no guarantee on whether you will get a buyer on this sentiment.
Actually, there is no transparency in penny stocks and they also have very little liquidity. That is why investing in these stocks without investing directly leads to loss.
Do not make the habit of taking everything on EMI
Easy financeing options in the market have made EMI normal. Mobile phones, TV, furniture, travel – everything is now available on EMI or No -Cost EMI. This is the reason why many people buy everything on EMI without much thought. When this feature becomes a habit, a large part of fixed income is spent in repaying the debt.
For example, the income of a person is ₹ 60,000. If he has taken a total EMI of ₹ 30,000 on the purchase of different things, then its investment or emergency saving capacity is reduced to half. If there is a problem in the middle of a job or a family like medical emergency, then there is a danger of getting caught in a heavy debt trap. It can be very difficult to get out of this.
So take EMI only when it is very important and is worth repaying. Taking the things of waste on EMI can affect both credit score and mental peace.
Do not postpone SIP
Systematic Investment Plan (SIP) can make strong assets in a long time. But, many people keep on avoiding it by making excuses. For example, SIP is not yet being saved, the market has fallen or stop a little time. However, SIP is quite a disadvantage in not starting quickly as this benefit is available with compounding.
Now as a person starts ₹ 5,000 per month at the age of 25. If an average of 12% annual returns, then by the age of 60, he can make a corpus of about ₹ 2.75 crore. At the same time, if this SIP is started at the age of 35, then the total corpus will be reduced to about ₹ 88 lakh.
This simply means that the effect of time is very deep on investment. The sooner SIP is started, the better. Late start means missing a big chance.
Also read: Home Loan EMI: How much will be the benefit in EMI and tenure after repo rate cut, understand complete calculation