Month: May 2020

Are you risking your financial future by trying to do DIY?

‘DIY’ or ‘Do It Yourself’ have been a trend since quite a while. Whether it is about making a piece of craft or decorating a corner of your house, DIY is the go-to search word for almost everything. You might make a little mistake while cutting a piece of paper, and that’s a manageable mistake as you can redo it or resolve it with some patchwork.

However, DIY in financial management may result in major financial problems that you may only realize later. Here are the reasons why you shouldn’t opt to manage your finances using the DIY method.

You’re treating investments as transactions

With an influx of fintech businesses, making investment has surely become easier as you can invest, redeem or review at a click of a button.

Investment is not a mere transaction. We repeat. Investment is not a mere transaction. Just because you can see an investment offer and an easy payment gateway doesn’t mean you should invest in it. It is a decision you take with a plan in hand considering your goals, lifestyle and your responsibilities. Are you sure you’re considering all of this while investing?

You are not saving/ investing enough

You’re surely making investments and managing it yourself, but have you considered if they will be enough for you?

For instance, one of my acquaintances recently mentioned that he was running an SIP of Rs.50000/- a month (sounds decent, isn’t it?). If I tell you his take home was Rs.3.5 lacs per month; do you still think its decent? No. And we all know why because he was just saving 15% of his monthly income. Now that we are in the midst of the crisis, he regrets for not saving enough when he had the chance to do so.

When one has enough disposable income in hand, it is easier to set money aside for investments. While we are doing it ourselves, we often forget this!

Quick withdrawal from financial goals

When you’re your own judge, you might not be rational too. In times like today, people who were managing finances on their own are clueless i.e. if they should stay or withdraw.

To avoid further risk, most are withdrawing their investments on seeing the lowering value of their portfolio. They think they’re on a safer side, without realizing that they’ve in fact paused their financial growth.

DIY is great, but not for every aspect of your life

If your stomach pains for more than a week, do you wait for it to cure itself or do you consult a doctor? Taking care of your money is taking care of your financial health. For that, an advice from a financial expert is essential. Without a professional advice, we can make financial mistakes whose burden will be felt only when thing aren’t going well such as times like today.

Consult a financial advisor today who can help you analyze your income, expenses and goals and accordingly chart out a financial plan for you. Proper planning can save you both time and money.

4 Things you should do to avoid financial crisis amidst the COVID 19 outbreak

We’re in the middle of lockdown 3.0. You’re at home. You switch on the TV and you see how the end of this lockdown is nowhere near us. You scroll your social media feeds to find out companies declaring bankruptcy. You log in to LinkedIn to read about enterprises cutting down salaries and unemployed professionals narrating their stories. You open your window to see how the world around you is not the same anymore.  

While you cannot change anything that’s happening, you can certainly change a few financial habits for good. Here are the 4 things you should to do to survive this pandemic without any financial challenges. 

Expenses < Savings 

The Work From Home and Work For Home lifestyle has surely taught us a lesson that we don’t need plenty of money for living our life. We need money for an elevated lifestyle. The lifestyle before lockdown demanded more money from us as there was an urge to go extravaganza about everything, whether it is a simple day out or a vacation. Now is the right time to sit and analyze the difference in the expenses before and after lockdown and accordingly cut down on the unnecessary ones to have a budget-friendly living with a limited income. 

It’s been proved time and again that money can’t buy happiness. Invest your time in planning your expenses to redefine happiness for yourself and your family. 

Savings must go on

We know, you’re dreaded by the current situation of the stock market and the fall in numbers, but don’t let it pause or stop you from investing in your SIPs. We understand you have financial goals to meet. However, unless you are failing to break even or undergoing a layoff or business shutdown, we advise you to stick to your habit of investing in SIPs. The NAVs might be low at present, but the increasing number of units will ascend the graph of profits for you in future. Hence, surf through the tough times and wait for the good times to roll in. 

Don’t overburden yourself 

If you’re unsure of your sources of income, avoid buying things on credit during this period.

This will add to your debt and make it more difficult for you to overcome the burden of debts. In such times of uncertainty, postpone any big purchases that are on your mind. Let taking loans be the last thing you do to ensure you and your family are in a safe place, financially. Focus on the necessities and plan your expenses accordingly. 

Set up an Emergency Fund 

Emergencies don’t knock the door before coming. Our current situation is the perfect example of an emergency. It’s the time that has taught us the value of an emergency fund. Also, let us make it very clear, Emergency Funds are meant only for emergencies like these and not for times when you run out of money because you overspent or when you need money to buy a gadget you did save for. 

Set aside an amount which will take care of you and your family during the time of crisis. It will also make you feel secure in the most financially insecure phases of life. 

Questions about financial planning and investing can be tricky to answer. You might be discussing and exchanging ideas about it on a group video call with friends and relatives, but it’s necessary to understand how your needs, your income and your goals are different from others and hence you need a piece financial advice that’s unique to your needs and lifestyle. Amidst the outbreak, don’t fall prey to panic about these topics. With the help of a financial advisor, be in a state of complete awareness about your money and investment plans. 

Stay IN. 

Continue to INvest.