Listen to this Blog here :
https://www.spreaker.com/user/8342452/money-myths-part-2-rajiv-khatlawala
Read it ? ... Go on...
Now that you seem to have got over the first three money myths, here are the next three money myths which I presume people have:
4. Investing equals Gambling
Oh Really ? So are you saying that Warren Buffet is the world's biggest gambler? Think about it . Investing in stocks , bonds or mutual funds when done for long periods of time with some proper guidance goes a long way in creating wealth while beating inflation. Long term investments (say 10 years and more) have yielded more than 15% + compounded returns to the relaxed investor. My take is that investing becomes gambling when it is done ignorantly, based on hearsay and done to earn quick bumper returns!
5. Your House is an investment.
The next time your friend or relative brags that he has invested in a house - ask him whether he intends to live in it. If the answer is yes - then you can safely correct him by stating that it is not an investment in the true sense of the word! Unless one buys a second (or third) residential property , purchasing a house does not fall under the category of investment. Obviously if the prices of the house you live in shoot up 25% in a year , you are not going to sell it to en-cash the profit and purchase it again when prices drop!
6. To create wealth you must reduce expenses.
Oh now that is what our fathers told us , just as their fathers told them! 'Beta , Kharche control mein rakho' Right? Thankfully , those were the old days. The new age mantra - and a better one - is earn more! Create multiple streams of income and in the process spend more, save more and invest more ! My young readers who have just started earning money can take a cue from this and aim for improve incomes rather than bootstrap one self .
I am sure there may be some more money myths which people around you may have. If so - just put it in the comment section and we shall all brood and think over it !
All the best
CA Rajiv D Khatlawala
Fintelligence4all
https://www.spreaker.com/user/8342452/money-myths-part-2-rajiv-khatlawala
Read it ? ... Go on...
Now that you seem to have got over the first three money myths, here are the next three money myths which I presume people have:
4. Investing equals Gambling
Oh Really ? So are you saying that Warren Buffet is the world's biggest gambler? Think about it . Investing in stocks , bonds or mutual funds when done for long periods of time with some proper guidance goes a long way in creating wealth while beating inflation. Long term investments (say 10 years and more) have yielded more than 15% + compounded returns to the relaxed investor. My take is that investing becomes gambling when it is done ignorantly, based on hearsay and done to earn quick bumper returns!
5. Your House is an investment.
The next time your friend or relative brags that he has invested in a house - ask him whether he intends to live in it. If the answer is yes - then you can safely correct him by stating that it is not an investment in the true sense of the word! Unless one buys a second (or third) residential property , purchasing a house does not fall under the category of investment. Obviously if the prices of the house you live in shoot up 25% in a year , you are not going to sell it to en-cash the profit and purchase it again when prices drop!
6. To create wealth you must reduce expenses.
Oh now that is what our fathers told us , just as their fathers told them! 'Beta , Kharche control mein rakho' Right? Thankfully , those were the old days. The new age mantra - and a better one - is earn more! Create multiple streams of income and in the process spend more, save more and invest more ! My young readers who have just started earning money can take a cue from this and aim for improve incomes rather than bootstrap one self .
I am sure there may be some more money myths which people around you may have. If so - just put it in the comment section and we shall all brood and think over it !
All the best
CA Rajiv D Khatlawala
Fintelligence4all
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