A famous quote goes, “Money talks…but all mine ever says is ‘goodbye!'” I’m sure we’ve all been there – you’re trying to make some smart financial decisions, but it always feels like your hard-earned cash is slipping through your fingers. That’s why it’s important to seek financial advice before investing, because as it turns out, most of us don’t have a clue what we’re doing.
Take Sachin Tendulkar for example. He’s one of the greatest cricket players of all time, but even he knows that when it comes to managing money, it’s best to leave it to the professionals. He advises young cricketers to seek expert advice before making any financial decisions, and he practices what he preaches. All his financial decisions are made in consultation with his family and experts in the field. He never takes his money for granted and never splurges. He spends only after giving it a good thought.
Then there’s my friend from the merchant navy. He’s a seasoned sailor who has travelled all over the world, but when it comes to investing, he’s a bit clueless. He was sold 50 lakhs of life insurance EACH in the name of his two children. It turns out, he and his wife only had life insurance coverage of 5 lakhs each, while his daughters were covered for 10 times more. Talk about a case of misplaced priorities! The lesson here? Don’t let insurance agents take advantage of you – always read the fine print and make sure you’re getting what you actually need.
The truth is most of us don’t know how much insurance we need. When a close relative pitched a life insurance policy to me recently, claiming it was a good tax-saving investment, I told him I didn’t need it since I had opted for the new tax regime. But he insisted that I buy it in my minor son’s name, as if it were some kind of investment that would bring returns. He quoted me a premium of 3 lakhs per annum for a coverage of 25 lakhs. Not only was the logic behind the pitch flawed – life insurance as an investment and life insurance in the name of a minor – but the premium quoted was outrageous. With 3 lakhs per annum, I could get insurance coverage in crores with a simple term plan. The question is, how much insurance is enough? Most of us don’t know the answer to that.
And don’t even get me started on the stock market. How many of us have a friend who claims to be an expert, boasting about hitting the jackpot with stocks or futures and options? How many of us blindly follow their advice without doing our own research? We forget that we have our own brains, our own understanding of risk, and our own criteria for success. It’s not enough to rely on someone else’s intelligence or one online course. We need to use our own brains and make informed decisions.
And let’s not even get started on those social media influencers who try to sell you the next big thing. One day, I stumbled upon a video of a lady promising to make me a crorepati in one year flat. All I had to do was invest in her “fool proof” system, and I was guaranteed to make a profit. I was sceptical at first, but then I saw the number of likes on her video and thought, “Hey, maybe she’s onto something.” Spoiler alert: she wasn’t. I invested my money, and let’s just say that crorepati status is still a few years away.
These examples just go to show that when it comes to managing money, most of us are lazy, greedy, and prone to follow the herd. But the truth is, seeking financial advice from trusted experts is the best way to invest your hard-earned money. And I’m not just saying that because Sachin Tendulkar does it. Okay, maybe I am a little bit. But seriously, don’t blindly trust your friend’s stock tips or those social media influencers who promise to make you rich. Instead, seek the advice of a professional, and double-check everything for your own satisfaction before investing your hard-earned money. Trust me, your bank account will thank you for it.