‘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.
