1.   Know common money mistakes

---

For financial success here on people have to shift from product centric approach to their own financial situation without mistakes.

Too many expenses and loans: - India has one of the best saving rates when compared with western nations, but same really can’t be said about the next generation.

Even having high and stable income their saving rate is very poor due to too many expenses on loans. EMIs, High Insurance premiums & Personal expenses all eat earnings quickly.

Many Business owners and professionals take on loans only for tax saving but without taking a view of the family’s liquidity, present needs & future requirement which leads to severe liquidity problems.

Over Concentration in Real Estate: - Our love for real estate creates huge flow of black money in the system and many people’s income in cash can be easily cushioned in real estate.

Most Indians have completely forgotten the great Indian real estate crash of 1995 to 2003-04 and taking loans for real estate is a double side pain, may be risky especially since real estate is an illiquid investment.

Inadequate Insurance against risks of death, disability professional liability: - Most people buy life insurance as an investment, so most people pay high premiums and get a very low cover.

There is no assessment of the actual financial risk their family will face, in case of premature death and if most liabilities aren’t covered.

Investments done and money mistakes: - The portfolio of most people would probably look like this 50% to 60% in Real estate 30% to 40% in Debt funds like PPF, Insurance policies, fixed deposits, bonds and post office. 5% to 6% in cash (saving account, short term fixed deposits and cash) gold (primarily bought as jewellery) and very negligible equity.

Day by Day people are getting busier and end up taking decisions based on the advice of different set of people like CA, friends, different agents and there is no Co ordination between all financial decisions and their requirements of funds.

Achieving financial responsibilities and dreams are most important to achieve peace and that is always different from family to family.

Lack of goal setting and planning: - Most of the people take life as it comes. They don’t plan for it.

But nothing meaningful can be achieved in life without setting goals and planning. For uncertain things review of planning is essential.

Many of us plan for our vacations for several months and discuss as a family on next big car to be bought. But, when it comes financial life planning and goal settings we have no time.