How you CHOOSE to mess your financial life and never realise !

POSTED BY Jagoinvestor ON January 18, 2013 COMMENTS (60)

Do you make a choice or take decisions in your financial life ? A lot of people have not taken lots of important actions in their financial life, which they should have taken long back!. You have to understand that you are making a choice by not taking those actions. When you take some action or do not take an action, deep down you are actually making a choice in your financial life, which we will see now.


Let me give you some examples

1. Buying Endowment & Moneyback Policies

Most of the people who take the decision of buying endowment and moneyback insurance policies , they say that they are buying it because they trust the company and want safe returns. Now that’s their decision, however they have to be understand that deep down they are making some choices which are unspoken …

  • They are choosing to get below inflation returns on their investments
  • They are choosing to put money in something which is illiquid and might not help them in emergencies
  • They are choosing not to cover their family with a higher life cover

2. Not buying a Term Plan

“I don’t think I will die” or “It does not give back money at the end” – this is the general reasoning behind not taking a term insurance plan by many people. Now, again, it’s their decision based on their belief, but deep down they are making some choices which are

  • They are choosing a life of struggle for their family, in case they are no more in this world
  • They are choosing to pass on all the debt and tension to their spouse and children in future
  • They are choosing that their children and family might not lead a great comfortable life in future if they are not around.

3. Not buying Health Insurance

“I will take is next month” and “I drive carefully and I am healthy , so I don’t need it” are the top most reasons given by those who avoid taking health insurance. Again, they feel it’s a right decision and I am not commenting if it’s right or wrong, but surely they are choosing few things in their life and for their family …

  • They are choosing a situation where their entire wealth accumulated till date, might wipe out in health related expenses someday
  • They are choosing to get into a situation where they might have to run around for money to fund health related expenses
  • They are choosing to constantly worry about big ticket health related expenses if any

4. Not creating a WILL

It’s a decision taken by almost all of us. “We are still young”, “I will do it once my net-worth is at least 1 crore” etc., are the common reasons behind not making a WILL. However deep down you are making few choices and you have to accept them …

  • You are choosing a lot of frustration, chaos and running around for your legal heirs
  • You are choosing, that your family will have to meet lawyers, go to courts and spend lots of money and effort to get what they deserve
  • You are choosing to create a confusing situation, where your legal heirs fight with each other and try to justify who deserves what

5. Not hiring a Financial Planner (when you really need it)

“I can do it myself, I was a bright student all my life”, “They charge a lot for what they do”, are some of the reasons given by investors for not hiring a financial planner for themselves. It’s their decision based on their beliefs, but deep down you are making some choices …

  • You are choosing to still do trial and error and play with your financial life
  • You are choosing to not organize your self and get into a dedicated structure which can improve your financial life
  • You are choosing to focus on what you will spend rather than what you will get out of the whole exercise.
  • You are choosing to delay your actions and rely on yourself for taking actions and get disciplined which most  fails most of the times

6. Over spending right now like there is no tomorrow

“Life happens NOW”, “If I don’t spend, whats the point of earning well”, “I will earn more in future, let me enjoy today” – These are the top most things you will hear people saying who over spend (more than they should). One can comment easily if it’s right or wrong, but let’s not get into it, it’s their decision and there is nothing wrong in it, just that these people need to understand the choices they are making without realizing them

  • They are choosing to have a struggling financial life in future in case tomorrow does not turn out to be like what they imagined
  • They are choosing to have a better today at the cost of tomorrow
  • They are choosing to be working for more years in future, because they will not have wealth when they are old.
  • They are choosing to have a less comfortable life later in life, when responsibilities increase and opportunities decrease


At the end of the day, you always choose something in your life out of the decision you make. This is true for all the aspects of life, including your financial life. So understand that you are fully responsible for what you get.

Can you share your story in short and share what choices have you made in your financial life ?

60 replies on this article “How you CHOOSE to mess your financial life and never realise !”

  1. Rhea says:

    Hi Manish

    First of all woud like to appreciate your Blog awesome work

    I am 27 years of age drawing 30k a month
    Since i am unmarried I have lesser finacial commitments

    I Have investments in

    1) jeevan anand policy 5 lakh which i pay 20k annually
    2) 2 mutual funds of 2k eack each monthly in HDFC Top 200 G and L& T Mutual Fund (Earlier Fidelity Equity Growth)
    3) I invest in shares also 2500 a month ( long term and also additionally intraday)

    Would like your advice on
    1) a good term plan which will give me a coverage of 50 lakhs across say 35-40 yrs with riders of accident etc
    2) Health Insurance with family Floater (parents are Senior Citizens)
    3) what is better gold etf or gold mutual funds?
    4)what other mutual funds can i invest in?

    Thanks In advance

    1. 1. Aviva ilife or HDFC Click2Protect
      2. Oriental
      3. Depends on your requirement , read this
      4. Your existing one are good, additionally you can look at DSPBR top 100 and Quantum long term

  2. Tushar Singhal says:

    Hi Manish,

    I was read your book Jago Inverstors and learn lot of things regarding future financial planning. I understand that only long term policies is beneficial for future. I am 25 year old and working in Software Company with monthly salary of 28000. I want to start investing some money So, Please suggest me from where i am start investing.

    Tushar Singhal

  3. In my view ignorance about the financial products and also not taking advice before doing investment are the biggest culprit because all of us go to doctor if we have small disease fearing that it could be a big one but as far as financial planning is concerned majority of people do it themselves. Bad investment is like a disease which can lead to financial disaster and that is the reason why financial planner can turn out to be a doctor for you.

  4. Sid says:

    Hi Manish,

    I recently bumped into your website and have found it very good especially for a novice in FM like me.

    Can you please provide me some FPs in Pune (those who do not loot :))? Also when you say online FP, what does that mean?


    1. Sid

      What is Financial Planning ? You have to ask that question. Its taking guidance from someone. Its sharing your financial data and getting back the analysis and suggestions on how to improve. Now this can be done offline face to face (person meeting you, taking your data, going back, and coming back with results) .

      Online , the only thing is things happen over phone and email, but if the trust level is strong, things work very well and thats what happens in our case. We have served hundred of clients like this and it works perfectly well , read testimonials

      If you want some one in Pune, I shall be able to assist you with contacts !

  5. Girish says:

    Hello Manish,

    Thanks for this nice article.
    I would like to make F2F interaction, so could you please suggest any good FP residing in Pune?

    1. Girish

      Can you mail us .. Are you not comfortable with online financial planning ? If not, I will forward you the numbers of some CFP’s in Pune

      1. Girish says:

        Hi Manish,

        Thanks for the response!

        I am bit uncomfortable with the way of online communication. It’s not clear to me what could be the ways for it. Is it going to be an e-mail communication only or some phone calls or mix of the ways or any other else?
        I just wanted some clarity on this and I may prefer this option as well.

        1. Its a mix of things .. do one thing, just schedule a call with us first, have a talk , I am sure you will be comfortable just like other hundreds of clients we have.

  6. ANOOP says:

    Dear Manish,
    very nice article..
    please help… I am 29 year old and I have just started earning from 1 & 1/2 years. Under some ill advice, I have invested in LIC Jeevan Saral with an quarterly premium of 30000 with annual sum of 1,20,000. After paying so much my cover is only 25 lakhs.. now I have gained some financial knowledge & I wanna know whether I should continue with it …or should I continue with it…..please please please help me in planning my financial life….

    1. First take a term plan if someone is financially dependent on you .. and read this article –

  7. Aquinas says:


    Very nice article Manish. Most points would be applicable to most youngsters today especially “spending like as if there is no tommorrow”. More than spending they buy unneccesary things like buying a second car just because they get it on credit. When I question the argument they put forward is that they have more assets in their name now. But what is more important than assets is the networth, as most of these unnecessary things depreciate with time , their networth decreases significantly.

    1. Correct 🙂 .. thanks for sharing your views !

  8. aniket says:

    manish ,

    i am confused, i started sip 2 yrs aback ,i build corpus around 1 lac as market on higher side , now there are givien 16% return,shall i go for profilt booking and re invest in equity or let keep it for long term corpus. which one is better way.

    1. If you are doing it for long term , then better do not touch and keep investing !

  9. Manoj says:

    This is indeed very good article Manish, some of very basic needs in life of creating will and taking advice from Financial planner is something we most of Indians miss. ofcourse I am also one of them 🙁

    Can you pls provide good financial planner details in Bangalore, dont have your email Id if u can provide pls 🙂

    1. Manoj

      Do you want face to face interaction or you are also ok with online model , we at jagoinvestor also have financial planning services if you want and trust us. Else I can pass on some financial planners email to you on your email if you want. Let me know

    2. Chetan Shinde says:

      Dear Manoj,

      I need to do financial planning so that my future is safe & secure with little risk.
      In view of this & to know more i want to have one to one interaction with you.
      Please confirm if it’s possible.
      Thanks to confirm the same.


  10. Deepak says:

    Hi Manish,

    This is in regards to the first point Endowment Policies.

    I had bought a Endowment poliy – LIC Jeewan Anand with my first year’s salary hope some tax benefit and securing my future. I realized later it is not an investment but a liability. Now I have paid premium of 43k annually for 6 years . I am finding very hard to surrender the policy.

    One point that keeps me paying the premium is – As per jeewan Anand policy you get the maturity amount twice. Once after completion of the tenure and next when you die provided I don’t die in the tenure.

    Guide me. What should I do. I am 29 years old and I don’t hold a term policy but I have a medical insurance.

    1. Overall your Policy returns are going to be very less compared to inflation . I know its a tough time for you to take decision . Its best to make it PAID UP policy now

    2. Abhishek Gupta says:

      Hi Deepak,

      Since you have already taken this, I would recommend you to continue the full term of the policy to get the full benefits of the Jeevan Anand Policy. Since you have taken it at a very early age, the Insurance Cover would be high and the maturity amount also would be sizable. Treat this as a Recurring Deposit u have done.


      1. Deepak says:

        Thanks Abhishek.

      2. Ashish Garg says:

        I agree with Abhishek, I had also taken the same policy at the age of 28 but thankfully I have taken cover of only 2lakh and thus premium is small. Now that I have realised the difference between insurance and investment, I have taken online term plans to cover the insurance needs and considering these endowment plans as “Invested Liabilities” and carrying on their burden for few more years to come.

  11. Raja says:

    Hi Manish,

    I am writing this asking for your guidance on a jewel loan taken from axis bank. I took a gold loan from axis bank by pledging gold ornaments last month, and the bank executive told me that partial payments are not allowed after completing the loan formalities. I didn’t have any choice than going with the loan at that moment. I sent a question through netbanking to my relationship manager which was forwarded to the same bank executive who processed my loan. He now says this is a commercial loan and bank policy says partial payments are not allowed. I have to make full payment to close the loan.

    Is there any way to reach out to the bank officials to help me with allowing partial payments as the interest rate is 15.5% and i can save atleast some interest by paying partial payments? I don’t know how to proceed further. Please help.

    1. Whatever was agreed in the agreement will apply , nothing else .. simple rule

      1. Raja says:

        Thanks Manish.

  12. Gopi Krishna says:

    Hi Manish,

    I Liked the last point you mentioned ” Spending like no tommow” is a dangerous trend happening in these days.

    Spending like that might be opt for a TATA or Ambani or Birla but we must be careful while spending like that if it is hard earned money.

    1. True .. thanks for sharing your thoughts !

  13. siddhant says:


    Very good article, Yes even though we can blaim hundred people around us for messed up Finncial life, as you said the guilty person is always yourself, hiring a financial planner is a bigger step but
    even simply putting all the financial information of investments & loans on one piece of paper can be 80% battle won. But hardly anybody does even that.

    1. Deepak says:

      The so called financial adviser only provides or talk about the plan/scheme which suits them and not the end user. They are only concerned about their commission and not customer’s requirement

      1. Deepak

        I am sure you had very bitter experiences so far, these kind of experience will keep happening if you go for those advisors who SELL you products. Why not go to only those charge a FEES and not sell products ! .. When they dont sell you product, there wont be any bias , right ?

        Dont you agree ?

        1. Deepak says:

          I agree

    2. True ! .. actions are everything !

  14. ANAND says:

    hi, Manish

    This was a very good article. You are doing a great job educating people. Time and again is has proved that what we learn in Schools and colleges become so irrelavent to our daily lives. The choice to lead a debtfree and happly life is thrown at everybody in the world, but how many people will embrace it and forget the instant gratifications. Keep doing the good job.

    1. True ! … Only experience can bring in good level of understanding of what really matters in life !

  15. Srinivas says:

    Hi Manish,

    Once again nice article, simple and crispy. Me, and my family is fully covered with the health insurance by my company. Do I still need to go for another one, and can you please suggest one good financial planner at Chennai.

    thanks – Srinivas.

    1. Mjason says:

      You should have a personal health insurance cover even though you have one with your current employer. If you read some other articles you will find more information on this.

    2. Srinivas

      THanks for Sharing your opinion on this point .. Can you mail me , I will find out some one from Chennai !

      1. Srinivas says:

        Hi Manish,
        As I do not have your mail id, I used contact us link in the home page.


  16. Harsh says:

    Should be enough to educate people. I always wanted to hire a Personal Planner but always worry if they will take my interest ahead of theirs.

    So 4 and 5 is still pending in my list, may be this is the year i will get down 🙂


    1. Did you contact few planners and talked to them .. there are many planners in India who are good ones .. if you want one in your city, tell me your city name and I might tell you some one who is in my contact list

      1. Imran Shaikh says:

        Nice article, can you please recommend a planner from Mumbai.

        1. Mail me .. and I will send you the details

      2. Harsh says:

        Yes Sir, Please send me few planner from Bangalore. I am more inclined to those who can interact with me online due to my busy schedules,


        1. Harsh

          If you are ok with online option , then why not go for our services , you can look at them at

          1. Harsh says:

            Thanks for pointing to that, right now i feel that’s little expensive for me. Will do an analysis to see if that suits my need. Right now i think i should order your book “How to be your own Financial Planner in 10 Steps”.
            Many Thanks for all your help.

            1. Sure .. go ahead !

            2. Harsh says:

              Already pre-ordered few days ago.. i guess they will be release soon. Jan end deadline is already missed i guess?

            3. Yea .. I guess it should be Feb now !

  17. George Joseph says:

    Here is an interesting way to stop procrastination on making right decisions:-)

    How i have got rid of most of my inaction(I still have some to-do list), is by teaching others to take up their financial life seriously.
    That makes me feel guilty, that I havent dont what i preach. That worked for me 🙂

    1. Yes.. thats the best way i guess.. only way to do something systematiclly is to deligate it !

  18. Ganeshkumar says:

    Hi Manish,

    You’re just spot on….never miss the target…I’ve shared this in FB, let’s just hope that people take their time and read this…And I’m doing my part by sharing my knowledge and experience with my colleagues and friends…

    Keep sharing such valuable information:)

  19. Aditya Karnik says:

    Hi Manish,

    I am glad that you have aptly covered several points that I as a planner confront while dealing with the prospects or even on the social platform. As Warren Buffet put it “You need not be doing many things correctly unless you are making basic things wrongly.” Let’s hope people in India take their Personal Finance as seriously and do basic things you have mentioned in this article.

    Warm regards,

    1. Thanks for the comment Aditya !

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