Common mistakes by Indian middle class destroying financial lives

Here are some mistakes that are specific to Indians and some world spread. Here are the major ones.

·                 Buying too much Gold: This is India specific and we also consider it an investment. Nothing wrong with Gold as an investment as long as it is used to diversify but on a standalone basis, having all or most of the wealth stored in only Gold and Silver is just a mistake. In long term gold has not created wealth. Investment in gold by purchasing jwellory is the worst decision.

·                 Buying what we can't afford with the money we don't have to impress others : Buying an iPhone (or any other luxuries that are just for showing off and have no additional utility than another economical alternative) with the salary of 20–30k per month on EMI's is what will delay your becoming wealthy by 5–10 years compared to using the additional amount for researched investments.

·                 Buying a house or a car in the early stages of career on EMI's: This too will delay the income one could have generated from the same money over the years.

·                 Idle money in the savings account: The money in the savings account loses its purchasing power over time due to inflation. Money, even emergency funds, too should beat at least inflation.

·                 Putting all eggs in one basket: This almost always ends badly. By doing that our risk is bigger compared to what it could have been if we had diversified our money in different asset classes.

Neglecting insurance/retirement planning: Most young people think insurance and retirement planning are mid-career financial goals, to be considered only once they have a larger income. Some don’t even consider insurance and retirement plans as being important aspects of financial planning. Buying insurance is a relatively cheap way of buying not only financial security for your loved ones, but also buying priceless peace of mind. Of those who realize the need to buy insurance, many fail to realize that insurance becomes significantly more expensive once you turn 40 and it is cheapest to buy a policy when you are young and healthy. There are similar advantages to investing in a retirement fund early on in your life. Retirement might seem a long way away when there are so many more immediate pressing expenses to take care of. It seems like one item that can be dealt with later in life. However, you need to plan now for the day when you no longer have a