Every year, prices of goods and services rise. This is called inflation. It eats into the value of your money and thus, puts a hole in your pocket. The only way to fight inflation is by investing and earning a return that is higher than the rate of inflation.
We live in a world full of plastic credit. While this has its perks, it also has its own set of pitfalls - mainly, the tendency to outspend your income. This is the worst financial mistake anyone can make. You need to get your expenditure tuned to save and invest for your future.
LACK OF DISCIPLINE
Today, you saved `10,000 out of your salary, but tomorrow you only manage to gather Debt. The next month, again you save `5,000. This lack of discipline in savings and investments can eat into your profits. Infuse financial discipline through SIPs!
Nothing is more dangerous than wrong information, and myths are all about that. You need to read up and get the right information about your savings and investments. Otherwise, you could end up believing in myths, which could affect the value of your money.
A ship is not meant to be safe in the harbour, but out sailing in the sea. Fear of losses can be quite crippling, but in the financial world, there is no gain without an ounce of risk. If you constantly fear and do not invest in riskier investments, you will not be able to earn good returns. Knowledge is the only way to defeat fear.