Myths about personal finance | Fusion - WeRIndia

Normally people have some fixed feelings about some things. Often they might just be myths.

Here are certain myths that many people have about personal finance.

Many people who have a lot of money or very little money think that financial planning is not essential for them. But, remember that planning is essential for future uncertainties.

Financial planning is also must for all, irrespective of the money you have, for successful management of your finances.

Another myth about personal finance is that most people think that term insurance policies are a waste of money. This is because, the assured sum will not be received by the policy holder but by his or her nominees.

But, you should note that term insurance policies are meant for your dependents. In the event any unforeseen incident happens, these policies protect the family of the policy holder. The life insurance policies generally provide adequate cover with small premiums.

Several people believe that they can save tax through an insurance policy. But, this is the worst method to save tax. If you really need the specific insurance policy, you can opt for it. Otherwise, it is a waste of money.

So do not choose tax saving options in the last moment i.e. at the time of your income tax filing. But, plan in a proper way in the beginning of the financial year.

Investing in the equities is not as risky as you think. It has some risk when compared to your fixed deposits. But, these term deposits cannot provide you higher rate of returns than equities. So, invest your money wisely to get a fixed as well as a good return.

Do not think that you don’t need a financial planner. For proper planning and systematic financial management, the help of a financial planner is essential. He or she can guide you in taking wise decisions and getting good returns.

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