Few days back, I got a call from one of my acquaintances who asked me about a product which stated “Start a SIP and get an Insurance free”. Often it is believed that a lot needs to be done to manage the finances effectively and hence every time something new is launched in the market or is heard of or talked about, most of us get curious to know more about it and buy it irrespective of the fact whether we need it or not. Continue reading “Stay Simple – Stay Foolish”
Category: Behavioral Finance
Credit Card Swipe: Wipes the Pain
A while ago I wrote an article on needs v/s wants wherein I talked that in this fast paced world of consumerism we are increasingly concentrating on our wants viz a viz our needs. One of the biggest reasons for such a change is that we no more feel the pain of paying. You must be wondering, what is pain of paying? Imagine you are out for shopping and you come across a very smart watch. The moment you see it you feel like buying it as this was something you wanted for long. Now you have three options to pay for it i.e. Cash, Debit Card and Credit Card. Continue reading “Credit Card Swipe: Wipes the Pain”
Make Your Kids Money Smart
“Twinkle Twinkle little star
How I wonder what you are
Up above the world so high
Like a diamond in the sky”
This rhyme reminds me of my childhood days when I was taking my first step towards becoming one of those stars who would shine like a diamond in the sky i.e. towards becoming a successful person in life. Today when I teach the same rhyme to my young daughter , I aspire the same for her. Continue reading “Make Your Kids Money Smart”
Investing in equities – Risk or a Reward
Last week we discussed what risk is and the ways and means to manage those risks. A person in life primarily has three types of goals viz. short term goals, medium term goals and long term goals. And if a person intends to accomplish his long term goals; loss of purchasing power is his biggest risk. The best tool to combat this risk are “Equities”. When I often advise people to invest in equities for their long term goals; their sudden reaction is “Equities are risky investments and they do not give returns”. Today let’s understand the myths and realities about equity investing. Continue reading “Investing in equities – Risk or a Reward”
Have you managed your risk
Whether it is investing, driving or walking down the street everyone exposes themselves to risk. At the outset, let us first understand what is risk in investing? We often hear people saying that you should not invest in XYZ, it is risky. To most of us, risk in investment is when market value goes down below the amount so invested. For instance, if Rs.1 Lac invested becomes Rs.98000, we presume it to be a risky investment. Continue reading “Have you managed your risk”