Take off with Natarajan

SOURCE:::::SILICON INDIA NET

Natarajan

Money is the most loved possession. You want money and hence you work hard to earn it. And if you have a huge bank balance, then what do you do with it? Either you save or spend. Something which you often do is spending it over things which you feel are benefiting you. If you feel that all your decisions are always right then just compare them with the 6 money myths which will show whether you make financial mistakes or not, as reported by Allison Kade from Learrvest.com.

Falling for Flash “Sale” Sites

The word “sale” always brings a happy smile on your face. It makes you feel that you can buy a very costly thing at a very affordable price. You also think these sale offer are best for people who are price conscious. For example if a shoe of 1200 is available at 950 then you will be attracted to buy it. What if the offer is for limited period then will you wait? No not exactly and you will make an immediate purchase as you think waiting would be a waste of time and opportunity. This is where you actually go wrong because here you spend money then you intend to.

Buying Cheap Stuff

Goods which are less costly will always have more number of buyers. It will not be very surprising if you find yourself being one of them. Before you buy something then don’t only consider its price but also its quality especially when you intend to use it for a longer period. You can use this easy rule of thumb to calculate the cost per use. For example, compare buying a pair of shoe of 200, which can wear maximum for 40 days, this will cost you 5 per wear. Now consider buying a pair of shoe of 600 which you can easily wear for nearly 200 days, this will cost you 3 per wear.

Choosing Junk Food

Are you a junk food lover? Even if you say no but then your poor health condition provides a good evidence of the truth. Fast food easily attracts you because it’s cheaper and tastier than plain healthy food products. Fast foods have always remained the main cause of obesity. Choosing Samosa, chats, golgappa, vada pav……may make you spend little, but in the long run can cause serious health issues like diabetes and heart disease. Always remember an ounce spend in prevention is better than a pound spend in cure. Your health is of major concerns so don’t exploit it over short term gains if not in future to correct your health conditions you will be spending lakhs.

Hanging Onto Your Retirement Payments

Even if you feel your retirement is a far off tale, but are you prepared for it. Don’t think if you put in your money in some retirement plan then you are making anadditional expenditure that’s why you can keep forgoing it. It is advisable to start on with early saving as say, if you start investing with a smaller amount of 2,000 a month at 20, you will accumulate 1.26 crore by the time you are 60 (at 10 percent rate of interest). If, on the other hand, you start saving the same amount at 30, you will be able to pile up only 65 lakh.

Skipping Insurance

Insurance is not a negative term and stop running away, it’s not meant to harm you. It doesn’t matter how many times you have said no to the insurance agents and have skipped the insurance policy. All that matters is you and your financial security, and you can protect both by signing in for some insurance policy, as by choosing a health insurance or car insurance policy will safeguard of sudden and bigger expenditure which you will be find difficult to arrange from monthly salaries whensome unpleasant situations arises unexpectedly.

Forgoing Lawyer Fees

It’s very important to keep your legal documents up-to-date. When you are alive you don’t think of your death and preparing a will never occurs in your mind. Forgoing lawyer’s fee today may help you save some money but later when you will pass away then your children and other dependents will have to spend thousands together in court fees.