March is that time of the year when we file our tax returns and plan for the next financial year. When I asked a few people well-known in the financial sector on how they manage their monies, here is a summary of what they told me. There are lessons to be learnt here. Read on…
- If you are terrible risk-taker, don’t be tight-fisted. Just be conservative with your money. Therefore, the stock market is out of the equation. Instead, invest in mutual funds (50%), real estate (20%), fixed deposits (20%); charity (8%) and 2% (stocks and shares).
- If you are pragmatic and want to take a few risks, real estate is best because it is less prone to fluctuations in value. Remember, stocks offer short term returns; mutual funds are for the medium term; real estate for the long term and fixed deposits for immediate needs.
- Don’t avail of any portfolio management scheme as that would mean trusting someone else with your money. Don’t make investments that you cannot monitor yourself. Don’t invest in areas you are not knowledgeable about. For most people, that should rule out foreign currency trading, commodities and complex-structured products.
- Greed is bad. The more you give, the more you get.
- What works for others may not work for you.
- Money is not a real asset, happiness is.
- The more you think of money, the less you make of it. The more you think of work, the more the work will make money for you.
Have a happy stay!
