Why do you not start Investing Rs…………… in a SIP?

Ask this question and the lies that you hear are amazing. Most of the lies are what people are telling themselves, and here are some of them:

1. I just cannot afford it!

Really? On a combined salary of Rs. 19,00,000 per annum, you cannot afford to put away Rs. 10,000 a month? How about that monthly eating out costing you Rs. 8000 or the bike you bought for 190,000, or that PS2? Give me a break.

2. Sir what is the hurry to save money for retirement?

I am just 34 – and I do not think I will retire before I am 55. That gives me 21 years to go! I will save later.

3. Once I am married my money problems will be solved.  Sir both of us will earn, and I will save 5k of rent. That I will be able do a SIP.

4. Markets are down – what if I lose more money?

5. Markets are UP – I will save money when the markets are down.

4 and 5 are just buying time for postponing. Procrastination is the key. These people do not want to invest, they just want to tell their own selves (telling lies to oneself!!) that they will start saving/ investing when conditions improve. A simple thing they could do is a RD in a bank – it has nothing to do with equity markets, but they will do nothing.

6. I am expecting an inheritance, why should I save?

Brilliant. What happens if your parents live much much longer than you expect? Or the money is finished off in paying for an illness? Or unexpectedly long recession erodes the money?

7. My house will appreciate tons…I will sell it off and go and stay in my hometown, I will save a lot of money.

8. I have to pay for my children’s education and marriage…I will invest as soon as the education expenses are over.

…..can the readers add more excuses?

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  1. Few More I have heard from my friends:

    1>I Dont have Demat account
    2>I dont know how to do KYC/ Waiting for KYC
    3>I have a moneyback policy which will mature when i retire, so why invest again
    4> Havent you heard of Harshads and Parikhs?
    5>I am saving Pay downpayment for my house and buy new one

  2. “You have only one life and you only live once.Live splendidly or not at all”.This comes from my personal experience:).I’m the investor and my spouse is the spender:)

  3. 1. Why do i need a Life Insurance if my company has a insurance for me

    2. Why do i need a Personal Health Insurance if my company is providing me one.

    3. why do i need a Medical Test to know the details i know i am healthy.

    4. Why do i need a Car/or Bike Insurance as i drive very safe and i know nothing will happen

  4. 14. I am looking/searching for the best fund to invest
    15. how should I invest – direct or consult a FP or RM…
    16. UPA-3 or NDA-2 will favor differently for different AMC. lets wait – patience is the key
    17. Japanese lost money in market for decades, Chinese are bleeding, india gone nowhere in 5 long years…why?

  5. I used to think point # 1 to be true in my case earlier. It’s only when I read your article where you suggested “What if your company cuts your payment by 10%? You still can afford almost the same lifestyle. Why not start investing 10% of your salary?”

    Well, that was the turning point of my financial life. I started by investing 2k per month and gradually increased to 13k now in two years.

    I even try to motivate others by the same funda (consider your salary is cut by company by 10% and start investing that 10%) and this works for many.

    This has worked wonders and I am more confident now than earlier in financial matters.

    Thanks a ton to you Subra Sir!!!

  6. For the last 5 years, am trying to open a direct equity trading account but could not be successful. For NRIs, all of our Indian brokerage firms are charging nearly 4% (1% for Buy, 1% for Buy PIS account charges, 1% for Sell and 1% for Sell PIS account charges) for each transaction. My breakeven stands at 4% for which I felt not worth persuing. I represent a large Indian NRI community abroad and none of them could participate in Indian equity due to procedural hassles, high charges or badly burnt fingers (licking losses). For NRIs, there is no avenue except getting into FDs or Real estate. I do not see any merit in critisizing indivual investors and it is the time institutions (markets, banks, regulators) should think about roping in new customer base. These entities should think why there are many many within India or abroad still does not have bank accounts or not investing in markets. I really feel the whole institutional set up needs a rehaul.

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