30 October 2024
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We have a list of 26 traps that you should avoid in your journey to creating wealth
Like it or not, most of us let our emotion of greed dictate many of our decisions. These could be about investing in a financial scheme or equities, buying life or health insurance, or others. We even let fraudsters get the better of us sometimes because of this emotion.
Let’s sample some examples. If there’s a discount to be availed of by spending a bit (sometimes a lot) extra, we go for it, not realising that the decision could upset our budget or cash flow. If a mutual fund or stock has given good returns in the recent past, we flock to it to share the profit pie, without checking its future prospects. If someone tells us a scheme can double our money quickly, we buy into it quickly, not bothering to look at the terms and conditions.
Similarly, if someone tells us a whole-life policy is a sure shot way of creating inheritance, we never look back to see if we really need it or can afford it in our senior years. If someone tells us that there’s no need to share your medical history when buying a health insurance, we readily agree, so that the premiums can come down, without realising that it can create problems in the claim process later.
Distributors may often gift wrap a suggestion, but it always makes sense to peel off the attractive cover to look what’s inside, and whether it’s suitable for you. Fraudsters may try to lure or coerce you, but sticking to the basic due diligence of asking questions can save you from becoming a victim. That will ensure you don’t fall for any traps and lose money or suffer later because of a decision taken in haste or without much afterthought.
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