Do you plan your weekend trip in advance or just pack your bag and go on an unplanned trip??
An unplanned trip sounds risky right!! Then why doesn’t unplanned finance sound risky? Why does planning your financial future always take a back seat??
Our personal finance decisions affect our life on a daily basis. Future financial planning is one of the most important things to be done to secure yours & your loved ones futures. Planning personal finance is all about the know-how to manage your money to the best of your ability.
Future financial planning should not be taken lightly; there are many aspects that need to be well examined & then need a periodical checkup. Your finances should be balanced, taking into account you’re short-term as well as long –term finance requirements.
A research done emphasis that around 90% of the personal finance decision are drived by the Just because syndrome.
Let us check your financial decision. Answer the below questions:
- You have invested into equities just because your friend told that investments need to be made into equity?
- You happily invested a huge amount in a debt instrument of a company only because it was paying higher interest rate?
- You regret on any of your investment decision?
- You hold a Insurance policy only because your office colleague or relatives have forced you?
- You have invested in a mutual fund/stock seeing your friend investing in the same?
If the answers are “YES” then you are a victim of “JUST BECAUSE SYNDROME”. So now the question comes what is the medication for the same.
Medication prescribed for JUST BECAUSE SYNDROME Medication 1: Portfolio health checkup Medication 2: Setting your financial goals Medication 3: Knowing your Risk appetite Medication 4: Right Asset allocation Medication 5: Revisit above four prescribed medication on semiannual basis.
“Buy when everyone else is selling and hold when everyone else is buying. This is not merely a catchy slogan. It is the very essence of successful investments” — J.Paul Getty