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02 January 2013

FINANCIAL TIPS

Bandra Buzz

Financial mistakes to be avoided in 2013 3 eral unwritten rule is that once a loan is given, the well wisher turns into a foe and recovering the money turns out to be the greatest nightmare in life - with bad blood, mud slinging, verbal exchanges, ugly SMS’es, accusations, and oen ends up in a cheque bouncing case and years of courts dates. I appreciate this may not always happen - and helping your fellow brethren is a good deed by default, but the fine prints have changed and moral values have degraded over the decades of our civilized existence. Our wealth has increased, but moral values have reached new lows. So, that is just a precaution. Even otherwise if you give money on interest to anyone - and you don’t have a Money lending License, it is an offence and your so called cheque bouncing case can go for a toss. It is also a violation of the RBI Act 1935 {Sec. 45S}. So beware!

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mistake to take care of - is be away from high interest Every other day the newspapers are overflowing with in(more than 16% p.a ) or quick return schemes, most novative, ingenious frauds coming up and gobbling down of which are cleverly camouflaged in attractive lookinnocent investors hard earned money. Hence, here are ing business models. Remember that, literally no business certain financial mistakes to be avoided this year. doubles your money overnight. So also, such money multiplier or MLM schemes are mistake is (as far as possible), avoid giving personal, rather so called friendly loans, to friends and well banned under ‘e Prize Chits and Money Circulation wishers - with or without interest. Because the gen- Schemes’ (Banning) Act, 1978.

mistake is to blindly invest in the stock market - just because a friend or an uncle or the panwala or a gossip monger in your group, has made his millions in a particular scrip, which zoomed overnight. And further still, don’t dabble in the derivatives markets ( futures or options) especially if you don’t even know the definitions of derivatives or it dynamics and complexities.

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mistake is building up a stock pile of credit cards and especially taking personal loans, unless it is absolutely imperative. Loans for personal spending, like holidaying; is normally bad economics. Avoid delaying or rolling over credit card payment - and avoid making the credit card payments on EMI basis. On a priority basis, try to get rid of credit card dues, then personal loan, then car loans and ultimately housing loans. On a lighter note, the best thing is avoid taking loans. Lastly, let not good money chase bad money. If something is irrevocably lost, don’t put too much emotion to it - nor spend aimlessly just to recover it, for the sake of ego. Remember emotions are the loose motions of the brain. Have a prosperous 2013 and beyond…

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CA Rajesh Sanghvi

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Vol. IV Issue 1  

A community newspaper that connects you with Bandra locals

Vol. IV Issue 1  

A community newspaper that connects you with Bandra locals

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