What's a personal finance tip or hack that should be common knowledge but isn't?

[minabell]

@pda543 One of my friend asked me too. I told him to directly take whatever comission he was getting. Never bugged me after that.

 

[hesmylordalways]

@minabell Why is this so? genuinely curious

 

[minabell]

@hesmylordalways You neither get good insurance, nor good returns. Good for the agent and policy issuer but bad for you. Better to keep them seperate.

The detailed explanation here:
https://www.valueresearchonline.com/stories/9261/do-not-mix-insurance-and-investment/

 

[jobar]

@minabell Nice Article.. Here's another one with interesting math : https://primeinvestor.in/returns-from-lic-new-jeevan-anand-policy/

 

[joeymaroni95]

@jobar And I always thought Jeevan Anand was the thing :/

 

[hesmylordalways]

@minabell Thanks man!

 

[auntynet]

@rezene A lot of people I have met don't know how to use credit cards or use them for their benefits

Forget using it they don't realise that paying the minimum due isn't enough.
That itself is a big financial hack which indians need to know more

Credit cards are best for people who don't need credit.

 

[blueangels]

@auntynet I have iq less than 50.
Please eli5

 

[zippo387]

@blueangels in Simpler terms if you keep on paying the minimum due the interest charged on the rest of the payment is substantial if you keep on doing this it would way more expnsive than taking personal loan.. NEVER EVER MISS YOUR CREDIT CARD PAYMENT THAT TO PAY MINIMUM DUE... it will hurt more & is best business for bank.

 

[blueangels]

@zippo387 Hmm. I just landed on a job after college.
Not even thinking of getting one

 

[zippo387]

@blueangels I would recommend stay away from one until you are confident you can handle finance well.. ask your parents or financially independent guy in ur family. It very to easy to get debt these days

 

[mapes21]

@auntynet System is designed for the rich, by rich.

 

[gracejannie]

@rezene Think, ultimately for what, are you doing all of this financial planning stuff :
Peace of mind / happiness for you and your family / life goals / bucket list.
So take care of your health. Exercise. Undergo periodic tests.
Dunno if there's an afterlife but pretty sure your money is useless there.

 

[chamtt]

@rezene Instead of creating one big amount FD, break it into multiple FDs. In case if you need some liquidity, you can break a few FDs and let the rest continue. Most banks levy penalty on pre-mature withdrawal.

 

[chamtt]

One more tip is laddering of FDs. This article explains it well - https://www.financialexpress.com/mo...an-maximise-your-investment-benefits/1792759/

 

[eagle57]

@chamtt Interesting! I learn something new everyday here