Wednesday , 19 December 2018
Breaking News

Your thoughts are hurting your money life

It is important to take the first step and know where you stand financially. The sooner you start getting involved in it, the better it will be for your financial health. Photo: iStockphoto

It is important to take the first step and know where you stand financially. The sooner you start getting involved in it, the better it will be for your financial health. Photo: iStockphoto

Who doesn’t like a healthy body? To get into shape you have to focus on your diet and exercise—basically eat less junk and move a bit more. Now if you decide to do it for one day a year, you won’t see any difference. We all know, to remain fit, you have to follow the process on a regular basis, in fact make it a part of your life. Same goes for finances as well. But many get scared to take the first step. It is very similar to planning a marathon. One morning you can’t wake up and decide to run a half marathon. It is only possible through training and continuous practice. But for many it may sound like an impossible task. Like for fitness, your mind makes multiple excuses to stay away from managing money as well. Here are the most common ones and how to overcome it them

I don’t understand numbers

You hear a lot of people saying they don’t understand numbers or are very bad at math. Why does it happen? “Women who are homemakers usually say this. In reality, women offer practical solutions. For instance, they understand the budget of the house or a financial goal much better,” said Dilshad Billimoria, director, Dilzer Consultants. Money is part of your day to life and dealing with it is a basic skill you need to learn. If numbers scare you, use technologies such as apps to work on it. It is not as difficult as you think it is.

‘My parents handle my finances’

You don’t ask your parents about where to party or which app to download on your smartphone.Your parents don’t come and help you make presentations at your office meetings or tell you whether to watch Avengers: Infinity War or not. Then why do you want them to handle your money? Most parents are unlikely to be equipped to give you details of all the latest investment avenues. Also, the risk appetite for an older person is likely to be very different than that for a younger one. A fixed deposit that may have worked for the parent is unlikely to work for you, considering there are multiple other investment avenues.

‘I am scared of the money talk’

The fear of handling money matters creeps in when you think that you are going to hear something unsettling from the experts. For instance, when you go for a medical test, you want to know how your health is. Based on the tests, you would be able to decide whether you need medication or alter your lifestyle to improve your health, in case there is a problem. Unless you don’t know the issue, how will you resolve it?

It is important to take the first step and know where you stand financially. The sooner you start getting involved in it, the better it will be for your financial health.

‘Why should I plan for 20 years later?’

Many in their 20s and 30s say they are too young for investments. “It is a general misconception. There are some who understand the power of compound and are savvy. They start saving immediately. However, many don’t realise that they are going to live longer. We give a reality check on longevity. With medical advancement, life expectancy has become much longer. Academically, the life expectancy is around 65 years of age. However, in reality it is about 85-88 years of age. This should be considered as a part of corpus creation. After you show the numbers, the youngsters will be able to plan better,” said Billimoria.

[“Source-livemint”]