Our bankers are getting are richer. Our insurers are getting are richer. Our jewelers are getting richer. And all this simply because, we have not bothered to take good care of our personal finances.
Don't!
Don't be Lazy!
Don't be Ignorant!
Don't make others Rich!
Earning best returns on our investments, is one part of the story.
The other equally important aspect is to, not let tons of money slip through our buttery fingers.
Just follow these amazingly simple financial tricks...
... tricks that will definitely bring immense wealth and prosperity to your family and you.
When we borrow say a home loan or a vehicle loan, we try and keep the payout of interest and principal amount to the minimum possible. Naturally! This helps us to minimize the stress on our monthly budgets. So the loan doesn't pinch us too much. It may at best make us 'uncomfortable'; but at least it is not 'unbearable'.
Beware!
This is a bad idea! Very bad idea!
To know why, read my blog post Step Up Your Loan EMIs For Mind-Boggling Savings for the detailed numbers.
As you will be shocked to realize, you can save lakhs of rupees on your total interest payout, whenever you increase your EMIs.
It is clearly evident that if you minimize your EMIs, you will end up paying a lot (lot) more on interest.
This, of course, makes your banker very happy and very rich... at your expense. That's why he is always willing to accept lower EMIs.
Instead, it would be lot smarter for you to stretch your EMIs... almost to the breaking point of your monthly budgets; beyond which it may become practically impossible for you to make both ends meet on a day-to-day basis. This short-term pain is good for excellent long-term financial health.
If you are willing to stretch yourself really hard for six-pack abs, why not for six-figure savings too?
The lower you contribute your own money as a down payment, to buy a property or a car, the more you have to borrow.
More the loan amount, more the interest:
Again, your bankers have all the fun... at your cost.
Therefore, it would be lot smarter for you to stretch your down payment... to the maximum possible amount that your pockets permit.
In fact, if you are taking the loan to buy a property, you can even dip into your emergency reserves.
Because, if in future you do face any financial crisis, home loan top-up can be your savior. So it isn't as if you are taking too big a risk, by cutting down your emergency fund. Instead, the savings in interest would provide a big boost to your wealth creation efforts.
Yet, the prices are vastly different!
You will get gold at the international prices of the day, when you buy gold from a mutual fund. But, your jeweler will sell you the SAME gold at 10-20% markup.
That is why: Jewelers are glittering rich. And you...?
My question to you, therefore, is pretty simple... why pay MORE for the same (same) product?
On one hand, you love discounts. That's why you eagerly wait for the announcements of sale. Yet, on the other hand, you are paying (useless) premium while buying physical gold. Think about it!.
Meanwhile, here are some more reasons why Gold ETF scores over Jewelery.
As medical expenses balloon, you need to jack up your insurance cover every few years. No doubt about that too.
Higher claim ratio is forcing insurers to increase the premium quite often. No doubt on this point also.
Despite all this, thankfully there is a way to restrict your annual payout on the health insurance premiums.
Suppose you plan to cover your family and you against the risk of medical ailments, illnesses and diseases for a sum of Rs.15 lakhs. Normally, most people would buy a single Rs.15 lakhs family floater policy.
Don't do that!
Instead, buy a standard Family Floater policy for a sum of say Rs.5 lakhs only.
And, buy a Super Top Up health plan for a sum of Rs.10 lakhs (with Rs.5 lakhs as deductible).
Absolutely The Same Benefits! But Much Lower Premiums!
Again my point... why pay more, when you can get the same thing at a much lower cost! Why make your insurers rich... at your expense.
Concluding: As you can see, these are very simple tricks that...
... you can implement right from today itself
... and reap huge financial gains in the bargain.
By the way, this surely is not an exhaustive list. There are many more ways to avoid making others rich; and in the process filling up your coffers.
Do you have any such ideas, that you would like to share with the others?
Don't!
Don't be Lazy!
Don't be Ignorant!
Don't make others Rich!
Earning best returns on our investments, is one part of the story.
The other equally important aspect is to, not let tons of money slip through our buttery fingers.
Just follow these amazingly simple financial tricks...
... tricks that will definitely bring immense wealth and prosperity to your family and you.
Trick No.1 - Maximize Your EMI
More often than not, we prefer to keep our EMIs low.When we borrow say a home loan or a vehicle loan, we try and keep the payout of interest and principal amount to the minimum possible. Naturally! This helps us to minimize the stress on our monthly budgets. So the loan doesn't pinch us too much. It may at best make us 'uncomfortable'; but at least it is not 'unbearable'.
Beware!
This is a bad idea! Very bad idea!
To know why, read my blog post Step Up Your Loan EMIs For Mind-Boggling Savings for the detailed numbers.
As you will be shocked to realize, you can save lakhs of rupees on your total interest payout, whenever you increase your EMIs.
It is clearly evident that if you minimize your EMIs, you will end up paying a lot (lot) more on interest.
This, of course, makes your banker very happy and very rich... at your expense. That's why he is always willing to accept lower EMIs.
Instead, it would be lot smarter for you to stretch your EMIs... almost to the breaking point of your monthly budgets; beyond which it may become practically impossible for you to make both ends meet on a day-to-day basis. This short-term pain is good for excellent long-term financial health.
If you are willing to stretch yourself really hard for six-pack abs, why not for six-figure savings too?
 |
| Four financial aces in your hand, that you probably missed in raking money. |
Trick No.2 - Maximize your Down Payment
This is on the similar lines to the above Rule No.1.The lower you contribute your own money as a down payment, to buy a property or a car, the more you have to borrow.
More the loan amount, more the interest:
Again, your bankers have all the fun... at your cost.
Therefore, it would be lot smarter for you to stretch your down payment... to the maximum possible amount that your pockets permit.
In fact, if you are taking the loan to buy a property, you can even dip into your emergency reserves.
Because, if in future you do face any financial crisis, home loan top-up can be your savior. So it isn't as if you are taking too big a risk, by cutting down your emergency fund. Instead, the savings in interest would provide a big boost to your wealth creation efforts.
Trick No.3 - Buy Gold from the Mutual Funds
Whether you buy gold from a mutual fund or your jeweler, the product is absolutely the same (assuming you are buying 24-carat pure gold from your jeweler and not a 22-carat jewelery).Yet, the prices are vastly different!
You will get gold at the international prices of the day, when you buy gold from a mutual fund. But, your jeweler will sell you the SAME gold at 10-20% markup.
That is why: Jewelers are glittering rich. And you...?
My question to you, therefore, is pretty simple... why pay MORE for the same (same) product?
On one hand, you love discounts. That's why you eagerly wait for the announcements of sale. Yet, on the other hand, you are paying (useless) premium while buying physical gold. Think about it!.
Meanwhile, here are some more reasons why Gold ETF scores over Jewelery.
Trick No.4 - Break your large health insurance cover into two
Health insurance is a must. No doubt about that.As medical expenses balloon, you need to jack up your insurance cover every few years. No doubt about that too.
Higher claim ratio is forcing insurers to increase the premium quite often. No doubt on this point also.
Despite all this, thankfully there is a way to restrict your annual payout on the health insurance premiums.
Suppose you plan to cover your family and you against the risk of medical ailments, illnesses and diseases for a sum of Rs.15 lakhs. Normally, most people would buy a single Rs.15 lakhs family floater policy.
Don't do that!
Instead, buy a standard Family Floater policy for a sum of say Rs.5 lakhs only.
And, buy a Super Top Up health plan for a sum of Rs.10 lakhs (with Rs.5 lakhs as deductible).
Absolutely The Same Benefits! But Much Lower Premiums!
Again my point... why pay more, when you can get the same thing at a much lower cost! Why make your insurers rich... at your expense.
Concluding: As you can see, these are very simple tricks that...
... you can implement right from today itself
... and reap huge financial gains in the bargain.
By the way, this surely is not an exhaustive list. There are many more ways to avoid making others rich; and in the process filling up your coffers.
Do you have any such ideas, that you would like to share with the others?
