Watch out for these seven money facts!

By abithadeepak | December 14, 2009

Whatever your earnings, you can set aside a portion for saving. Simple budgeting, translated as spending lesser than you earn can pave the way to start saving. If you do not think about saving as early as possible you will lose out on significant sums of money at a later stage in life. Needs are different from wants, the more you earn, the more you will spend on your wants. Hence, its best to define your spending patterns early, so that you make a habit of saving.

Statement #1

Popular belief is that you pay more for the quality – False.

You believe the more expensive the price tag, the better the quality, which is a connect that is not always there. You perhaps pay for easy availability or the ambience for the place you shop at, for instance, the same apparel that is available in the nooks and corners of T.nagar, in chennai maybe showcased at triple the price at a branded store. Most commodities in your local kirana store will be way cheaper as opposed to the ones you buy at a supermarket. So always shop around for the better deal on price, atleast for the products you buy often.

Statement # 2

Life insurance doubles up as good investment and everyone needs it – True

Life insurance is just that. It is for the sake of insuring your life and even that only when there are people who are dependent on you. This should ideally go towards maintaining the same standard of lifestyle that you are providing them, when living.

If there are no dependants or if there is no dire need for a life insurance policy don’t opt for it. Also, never misunderstand it as an instrument for investment. Opt for a pure insurance plan if you must go for one. For investment purposes there are exclusive investment opportunities.

Statement # 3

If you visit a credit counseling centre then you are marked for a bad credit score. – False

Absolutely False! A credit score is awarded to you depending on how you have maintained your repayment track record and has nothing to do with a counseling session on how to prevent yourself from bloopers on management of funds or generating liquid cash from investments that will help you repay your loans!

Statement # 4

If stock prices are crashing, it is a great opportunity to invest – Depends.

Given the volatility of the market what there is no guarantee either way or that. What is true however is the fact that as far as stocks are concerned benefits are best reaped long term.

Statement # 5

You need to earn a handsome sum of money to start thinking about saving! – False.

Whatever your earnings, you can set aside a portion for saving. Simple budgeting, translated as spending lesser than you earn can pave the way to start saving. If you do not think about saving as early as possible you will lose out on significant sums of money at a later stage in life. Needs are different from wants, the more you earn, the more you will spend on your wants. Hence, its best to define your spending patterns early, so that you make a habit of saving.

Statement # 6

All your debts perish with you – False

When a person passes away, their debts will ideally be cleared from the property or movable assets they left behind, the remainder of which would be handed over to the heirs. This includes any property or money the person has bequeathed in his will as well. In the case of joint bank accounts or co-owned properties that particular person with whom the account is jointly held or property is co-owned, will be held accountable for the payment of the debt.

Statement # 7

Being a co-guarantor of a loan has an impact on my credit score – True.

Never readily accept becoming a co-guarantor for somebody else’s loan. You are putting yourself at a great credit risk if the person fails to repay the loan. It will go into your credit records and the bank or financial institution will hold you liable for the repayments the original loan consumer has to make. This could end up being a very sad situation for you and one best avoided.

Get the best deals on loan offers

Some useful personal finance calculators

Also read:

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.

Related Post

Category: Money Management Tags: , ,
Abitha Deepak

About Abitha Deepak

Abitha was formerly part of the Content team at BankBazaar.com. She has a Master’s degree in Mass Communication and has 14 years of experience in Journalism and Creative Writing. Armed with strong writing and conceptualisation skills, Abitha has written on Loans, Credit Cards and Money Management.

4 thoughts on “Watch out for these seven money facts!

  1. Hkoopat

    good information and such can help a lot for the layman.

    Reply
  2. d.chaudhuri

    i think pt.6 is not relevent in case of creditcard

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *