1. Just so sad.
    Basic finance should be taught right from the primary level along with the abc’s I sometimes feel…
    Food for thought, subrabhai, thanks

  2. few more I frequently hear:

    * Large no. of idle saving bank accounts. people switch jobs/locations and new company have collaboration with other/new bank so one fresh account get opened. they won’t bother to close older one. “kya farak padta hai? karwa denge jab time milega”..! One person have 10+ accounts whereas he is actively using only 1-2. Banks keep deducting minimum charges for not maintaining balances..until sab “safachat” LOL

    * People invest here and there for saving tax. 2 colleagues invested in ELSS in 2007 for tax saving. They don’t have any trail of receipts/transactions/details and no interest either to locate them because amount invested is not significant and also they fear the money been already lost because they invested in peak of bull market. LOL.

    * People lend money to their friends/colleagues/relatives and then hesitate to ask it back even after considerable long time since expected return date due to fear of losing/jeopardizing friendship/relationship. Isn’t that ultimately happen or you keep bleeding? LOL

  3. Hi Subra,

    Can you suggest how we taught personal finance to our child. If there is nothing taught in school then at least parents can take responsibility and taught their child in home.

    Can you put some article on it. So I will start educating my child.

    Thanks and Regards
    Kranti Goyal

  4. Hi jagbir,

    I am totally agree with you.

    In my company lots of people doesnt know about mutual fund but they invested money in ELSS for just tax saving. Even they dont know about what is status of their investment. When I asked response is also horrific “we dont have time for it right now” but within minute same person is planning for movie and party in weekend.
    These person is totally dependent on parasite type of agent. They waited for company mail. When company drops mail for investment proof. They contacted to agent and after giving money,cheque or documents(for KYC) to agent and getting receipt from them they forget everything.
    Best part is that they suggested to their friends that there is one guy who will do all the things without asking any question.


  5. i add from my experience:
    to believe the charges debited by the well known broker company for the services always correct, and not to verify at our end.

  6. Dear bharat Shah

    Could you please throw a light on ” Known broker Company” for the benefit of others?



  7. @sanjay
    first let me clarify that i am not hinting that the brokerage company is not a good brokerage company , and i am still the client of the same. what i like to point out that it is our lethargy, not to verify the accounts they prepared. in my case, at least twice they reverted the debit entries on my pointing out, and still again now they have made a debit entry, which is more favourable to them , and i have again to point them and rectify it!
    it is perhaps the first indian company to offer only the limit card based on total trades in certain period instead of %age brokerage initially, and latter also given option of %age brokerage after increasing the limit card.i think you can guess!

  8. Let’s face it, managing finance requires time and expertise and is expensive as one would have thought. An integrated system which can take on this issue is yet to emerge. We, at Futurewise aim to fill the gap by making this critical service available to the common man (read, 25-45 age group) at an extremely affordable price point, all this backed by a robust delivery platform (phone/internet). We are in beta stage and will launch soon. But given our service model I could totally relate to what the article says.

  9. Here’s more:
    All my own stupidity, some still ongoing:
    1. 20L in savings a/c at 3.5%, home loan outstanding also 20L @8%. Unwilling to invest anywhere due to fear of loss…now slowly investing in debt funds to earn 9%
    2. No SIP started, same case, fear of loss…then suddenly realizing that I have no retirement plan save EPF
    3. Hesitant to go to an IFA due to fear of losses/unwilling to pay fees

    Some good executions in the past:
    1. Home loan taken at fixed 8%, even though floating was offered at 7%
    2. Term insurance with 5% increase over base Sum Ass per annum, doggedly avoided ULIPs
    3. Some physical gold (coins) bought when gold was 12-13000 per 10g

  10. Well pointed out..these are just tip of iceberg!.

    We don’t let people drive without taking a license test but allow them to enter complex financial world without any basic financial education..

    People are so busy earning or caught in grind of life that they just think about it.

    Still I would not like to pay 55K to a financial adviser. Too steep a cost.

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