Lying is an art. Lying is a skill. Lying is not easy and everyone cannot do it. You can truly lie, only when you believe your lies to be the truth. So do you tell yourself financial lies which you eventually believe? Do you lie to yourself when you manage your money? Do you fool yourself with financial lies?
You are just 30. You have a long way to go before you even think of retirement. Retirement planning is for the distant future. Why bother about it now? There are more important matters at hand. You have yet to save. Yet to invest. So why talk about retirement.
You must understand that retirement planning cannot be done at the last minute. Not even in the last 5 or 10 years, before you retire. The earlier you start retirement planning, more money you will have to enjoy a good retired life. So start your retirement planning, when you are in your 30s and you will have a lot of money at retirement.
Term life insurance is a pure risk plan. You pay a premium and avail a term life insurance plan. If you (policyholder) die within the term of the plan, your family gets money, called the sum assured (death benefit). If you survive the term of the plan, you and your family get nothing. This makes term life insurance premiums very cheap.But here lies the problem. If you survive the term of the plan, you get nothing. How can you get nothing if you are paying your hard earned money? Why not buy an endowment life insurance plan which not only insures you, but also saves you money.
You must understand that the money your family gets in case of your untimely demise, might not be sufficient for your family to maintain their current living standards. This is because of inflation (rise in prices of goods and services with time).You must never mix insurance with investments.
You don’t have money to buy clothes and shoes. Must you spend your hard earned money on health insurance? Besides you are already covered by your employer. So why bother.
You are provided health insurance by your employer, only as long as you work for him. If you change jobs you cannot avail this health insurance plan. If you suffer a disease when you are changing jobs and are hospitalized, you will have to bear these medical expenses from your own pocket. Never compromise on health insurance even for a day.
Managing your money is child’s play. Why hire a financial advisor to do something so simple? You believe that a financial advisor works only for money. He cares only about himself and his needs. So why hire a financial advisor? When you are sick you visit the doctor. When you have to fight a court case, you hire a lawyer. When you need personal financial advice, you must take the help of a financial advisor.
So stop lying to yourself and avoid financial lies. You will soon grow rich.
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