28 Mistakes That Destroy The Financial Life Of people ---

A Mega Thread -

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Inspiration- @FI_InvestIndia @warikoo

Grab Your Cup ☕ of Coffee and let's Get Started --

1. Buying insurance policies for investment purpose:

Have you invested your money in insurance plan to get a return in future?

Big mistake! Out of 100 people I have spoken, 95 have made this mistake..

Very few people understand the difference between term plan, endowment plan, etc.

2. Not able to crack the credit card mystery:

Are you paying the minimum amount due on your credit card payment?

If yes, you are trapped in credit card mystery.

On the other side, very few people really enjoy the benefits like free lounge access, buy one get one movie ticket, etc.

The Concept Of Economic Moat While Analysing a Company

Economic Moat 101

A Thread 👇

Inspiration -- @FI_InvestIndia

What is a Moat ?

The dictionary defines the word ‘moat’ as a “deep, wide ditch surrounding a castle, fort, or town, typically filled with water and intended as a defense against attack “.

In stock market investing, an economic moat is an important concept with none other than Warren Buffet as one of its strongest proponents.

In fact, he has stated this multiple times that he loves companies with huge and long term competitive advantage over others, which he refers to as buying an economic castle with a ‘moat’.

A company with a moat has an edge over others as :

- It will have little or no competition

- it will be in an industry which would be difficult to penetrate into

-It will have a distinct cost advantage

How To Work Smarter?

- Don't Multitask
- Make a Weekly Plan
- Turn Off Your Phone
- Take Regular Breaks
- Always Be Organised
- Have a Clear Routine
- Finish What You Started
- Measure Results not Time
- Outsource As Much you Can

What Else You Would Add?

How to Build a Emergency Fund.

Emergency Fund 101

A Thread 👇

Inspiration -- @FI_InvestIndia

What is an emergency fund?

An emergency fund is a bank account with money set aside to pay for large, unexpected expenses, such as:

- Unforeseen medical expenses.

- Home-appliance repair or replacement.

- Major car fixes.

- Unemployment.

Importance of an emergency fund

Life is full of unexpected situations – good and bad.

Hence, apart from other things, you need to be prepared for it financially.

While you can plan for some foreseeable expenses, an emergency fund can help you manage all unplanned expenses efficiently.

The current pandemic is an example of one such unplanned expense.

People with an emergency fund are in a much better position to manage this lockdown than those who don’t.