What if I told you that your OTT subscription isn't your biggest money waste? The average young Indian is losing lakhs each year, and it's not because of their coffee habits!
Hi! Today we're diving into the six biggest investment mistakes that are secretly eating your money. Trust me, number five shocked even my CA friends!
FD RETURN VS INFLATION
(In %) Interest Rate Inflation
FY20 6.00 4.76
FY21 5.30 6.62
FY22 5.25 5.13
FY23 5.75 6.70
Number one - fixed deposits. Your parents' favourite investment is probably your biggest enemy! A 5.5% return when inflation is also similar and you also have to pay taxes on your returns? You're basically losing money in slow motion.
So, what should you do – you could look into inflation-beating options like: Equity mutual funds, Index funds or even the good old PPF.
Now on to the second big mistake – the "Log In Daily" Disease. Raise your hand if you check your investment apps more than your Instagram!
Every time the market dips, panic selling destroys more wealth than actual market crashes.
What’s the solution? I would say set up SIPs and treat them like your OTT subscription - set and forget!
The third one is something most of us are guilty of - the "I'll Start Later" syndrome.
Let me introduce you to two friends: Rahul, who started at 22, investing ₹5,000 monthly.
And Priya who started at 30, investing ₹10,000 monthly. By 40, Rahul has ₹45 lakhs while Priya has... wait for it... only ₹28 lakhs!
So be like Priya. Start investing young, even if it's just ₹500 a month. Future you will be mind-blown!
You like "Tips from Twitter", taking investment advice from someone called 'CryptoKing_420'. What could go wrong?"
Don’t fall for these shortcuts to financial success. Build a solid foundation of investment, with advice from credible professionals.
And I am back to another favourite of our parents –Buying Insurance as "Investment". Let me tell you this - if your insurance policy promises to make you rich, it's probably making your agent rich!
So, separate your insurance and investments. Use term insurance for protection and other assets such as mutual funds for wealth creation.
The last but not the least - your colleague bought a house, your cousin is into crypto, and your school friend won't stop talking about his stock picks - and that’s why you are also getting into all of these.
Don’t do that – don’t fall into the "One Size Fits All" trap. Your investment strategy should be as unique as your Swiggy order!