Malfunctions of My Brain

Value of the money is not in the hands of the beholder, it is in the actions of the beholder. I strongly believe so. From the very first earnings onwards what makes you Financially Independent is not the amount that you earn, but the deployment of earnings in a right manner.

Small Savings to Personal Wealth is the actual journey we propose to every investor who becomes part of the Trackfinder Family. It is a process driven wealth management done with holistic approach. Knowing yourself is the beginning of all wisdom, so said Aristotle. When it comes to Wealth Creation, knowing what you are doing wrong is the first step to a strong foundation. I am trying to pinpoint some of them that has emerged as pivotal.

1. Starting Late
   “I am thinking about investing now.” Just a week old in to his first job and this 21 years old youngster used two very important words while talking to me – Stability and Investments. I was extremely surprised by the enthusiasm and foresightedness this boy has shown.
   When should one start saving and investing is a conscious choice. All the cards are there on your table. You can Party hard, Spend lavishly, Boast around and keep Inflating your Ego. By the time you realise this, they are late by a cool 10 year. Else you could think like that young chap, count your blessings and privileges to become a Responsible and Financially Prudent Person.
2. Buying Wrong Insurance
   “Papa/HR/relative/friend/seniors told me to buy that.” Majority of the youngsters go through this, getting trapped in an extremely expensive insurance product. Treating insurance as an investment is a cardinal sin. There are only 2 important points I wish people to take note in an insurance product, one is protection against financial loss if some unfortunate thing happens to you and second one is a provision of tax free guaranteed return on investments without the influence of equity.
3. Investing in Real Estate
   “My friends bought a house at Rs. 40 Lakhs and now it’s Rs. 70L.” If you think that your Rs. 70L will become Rs. 1.25 Crore in the same time frame, you are seriously mistaken. Another mistake that people with old school of thoughts commit is buying additional houses for rental income. Back of the envelope calculation will shout-out, ‘You took a wrong decision’.
4. Futures and Options (F&O)
   “I made Rs. 20K last week from Options.” It is a fancy product which makes a broker richer than the investor participating in it. It was created for hedging a volatile asset class and now, nobody knows what hedging is. If we go by the social media advertisement on intra-day trading and the rosy picture it paints, India would have had lakhs of Billionaires. Wake up! Not happening! Athukkum Mele, had it been true, no one would have joined a broking form for salary of Rs. 15 to 25K. Stay away from this dangerous financial product.
5. Local Bank FD’s & Extra Interest.
   “Your Liquid Fund gives me 5%, my Co-Operative bank gives more.” It is often seen that, people queue up for that extra 0.5 to 0.75% without questioning the origin of that additional interest. If ROI in equity is companies performance oriented, ROI on FD is performance of the borrowers. If you search the prominent bank loan defaulters, you will find some geniuses who ran away with our money deposited in such banks.
6. Cryptocurrency & Bitcoin
   “What MF and Stocks, I invest only in Crypto.” Everything started with a beautiful intention of eradicating corruption. Blockchain has promised everything, transparency to accountability and transactions without borders to monetary reforms. As of today, Crypto did everything in absolute contravention to the theme on which it is created. The bigger questions is “Is it legal or Illegal?” Till we get this right, everything is Maya. This will probably end up as the scam of the 21 century.
   
   Last but not the least……………….
   
7. I Will Do It Myself.
   “I don’t need an advisor, I can research and do it myself on “Freely” available platforms.” DIY is absolutely fine. This is a deadly cocktail. Comedy of errors mixed with arrogance and ignorance leaves an after taste on your palate long enough to feel shy of doing something different. When Thanos came to play Endgame, Iron Man or Spiderman, Thor or Captain America did not say I will do it you guys stay back. Even ISRO/Tata/Ambani Chairman’s or FED/RBI Governor’s too never said I will do it alone. They, be it in cartoons or in real life, believed in team work. If you don’t now, one day you will understand the meaning.

These are my noting’s based on the investment habits observed in thousands of people. As well as experiences shared by many people who realised what they did wrong in their life.

If it is debatable and outright refutable, I am happy to know that you have done it right. Today you are Financially Prudent and supporting your beloved family. Proud of you.

If you find yourself stuck with one of the 7 points above, we are here to help you come out. State-of-the-art technological platform with vast experience can be put to your advantage. Remember, You are never late in changing the course of your journey to freedom from liabilities. Think out side the box with positive mindset.