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21 Best Personal Finance Tips to Riches Unlimited

"Money is NOT the most important thing in the world. 
  Love is. 
Fortunately, I love money." 
...Jackie Mason

1. Honestly speaking, managing money is very very easy. Even your child can understand it. It is definitely lot easier and useful for our entire lifetime   than the trigonometry and calculus; chemical reactions and equations; Newton’s and Einstein’s laws; and all the complex stuff we studied at school.

2. Income, howsoever large, is not likely to sustain your lifestyle when your pay-cheques stop. Since your income can and will (most probably) cease some day, you must start converting it into wealth.

3. You may have the best car in the world. But if you don't know how to drive, it is not going to take you anywhere. You have to either learn to drive (learn how to invest) or hire a driver (consult a financial expert).

4. Risk is inevitable and unavoidable. Therefore, think "Protection" not "Prevention".

5. Keep things Simple. A simple term plan, a simple mutual fund, a simple health insurance plan, etc. will work well in most cases. Complicated products often lead to financial destruction.

6. DON'T invest in ANY scheme that has the word "child" in it. When you want to save for your children, you don't have to do anything different. What is good for you, is GOOD for your child too.

7. Buy top-end phones, top-end cars, top-end gadgets, top-end dresses — without the support of a top-end Financial Plan — and you will surely hit the "bottom-end" with your finances.

8. Focus closely on your medical well-being and health insurance. Either you be healthy. Or your doctor will be wealthy.

9. Buying equity shares? Don't! Leave it to the experts. Just because you know how to drive a car, doesn't make you eligible to become a Formula One driver and participate in an F1 race.

10. Bank FDs: Slow and steady… but does NOT win you the INFLATION race.

11. Loan is a burden. The lesser you have the taller you stand. Borrowing means spending tomorrow’s unearned (and possibly uncertain) income today; and thus endangering your family's happiness.

12. You are suffering from "financial obesity" when your debts / liabilities exceed your income / assets. More the difference, the more obese you are. Quickly analyse your financial obesity parameters and start a debt diet plan...today!

13. Thou shall NOT BUY insurance if your primary objective is to invest your money or save on the taxes. Road to RIGHT insurance is dangerous and deceitful. Buy your policies with utmost caution and care.

14. The moment someone promises to give you super-normal interest, I guarantee that you won't even get your principal back.

15. The "false" glitter of gold has blinded many people for many decades. It is time to do the reality-check on gold.

16. Credit cards are akin to plastic explosive in your pocket. Handle them with utmost care. Restrict your credit card usage to minimum. Either you make the outstanding balance zero before the due date. Or the credit card will make you zero after that.

17. Not understanding, appreciating and investing in the Mutual Funds is the biggest financial blunder anyone can commit.

18. You have to be "inhuman" to invest in the stock markets. Because human nature – guided by Greed & Fear, rather than by Reason & Logic – will invariably lead to losses.

19. Do not buy FAKE assets such as Cars, TVs, Phones, ACs, etc. etc. They are liabilities. Because they depreciate. Because you need money to use them. Instead go for the REAL ones viz. Property (within reasonable budget), Shares, MFs, Bonds, Debentures, Gold etc. Because they appreciate. Because they generate more money for you.

20. March is worst month to plan your taxes and April the best. Saving tax is surely important... but definitely NOT at the cost of investing in a bad product.

21. Don't undermine your uniqueness. Your assets, liabilities, needs, desires, time-frame, risk-appetite are different from your friends, neighbours, colleagues, relatives. Hence, the focus should ALWAYS be on ‘You’ when making any personal financial decisions.

"It's good to have money and the things that money can buy, but it's good, too, to check up once in a while and make sure that you haven't lost the things that money can't buy."... George Lorimer

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