Personal Finance Blog India –

Common Reasons Why Few People Not Able To Save And Invest:

Here,word “save and Invest” not refer to  money in saving account but it refers to “Planned Saving ” with short,medium or longer term objectives.We will try to evaluate some common reasons why peoples are not interested or not able to plan their savings and investment.

  • Busy Schedule:

Competition is tough now a days.Generally people do not have much time to think and plan about savings and investment.Finally most of them ends with traditions like insurance policies.

  • Higher liabilities:

Sometimes liabilities become more than income.One of my friends mother is victim of Chronic Renal Failure (CRF).Cost of dialysis [twice  a week] is more than Rs.15,000/- per month and he finds it difficult to save after having such higher and must do liabilities.There are number of peoples who wish to save for future but such unavoidable  liabilities do not allow them to do so.

  • Trading addictions:
Trading is not bad but addiction is .There is no harm to trade with calculated risk. Trading addiction make them unable to save and invest for longer term.
  • Dealing with unknown persons:
In general,people prefer to deal with them who come from nearby reference.Some peoples find it hard to deal with someone never meet before.
  • Risk aversion:
Some people are highly risk aversed and conservative.
  • Fear of emergency conditions:
Some people fear of emergency situations and prefer to keep money in saving account which will available any time.No one can deny importance of emergency money but money lying beyond certain limit is truly injurious.
  • Study for exams and invest to save tax:
This is anology between students and investors.Exam is motivation for students while tax saving deadline is motivation for number of investors.I really fear when educational experts talks about Examless system and Direct Tax Code (DTC) talks about limited  saving and investment instruments…
Finally just to conclude,whats ever may be the reason we not able to save ,money is like a flowing water and it tends to find its own way if proper direction is not given,isn’t it?


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