I was having a conversation with my friends about the personal finance, inflation and other things. We all fall into that category where we have to save for retirement, save for child's education, save for medical expenses and other things. Though we all have started but again some of them are going fast paced whereas some are going slowly. All because of family commitments and other things.
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Like almost all of us invest more than 20% of our take home salary. But some of them do invest around 50% or more. So people who are investing more are more likely succeed in better financial positions than the people who are just saving 20% of them. There is a friend who is worried about his finances mainly because of his investment pattern.
He do invest all the things in Gold, for him(mainly family) Gold is the best investment. He has not yet explored the equity side of the investment yet. We had tried to convince him for long, but since the stock market is down and Gold is up, he seems to remain un convinced.
This is the problem sometimes people face when they try to teach personal finance. There are people who have a notion that this is the good, because their family used to practice that. But what was good might not be hold good in the future. For example, previously the FD interest rate where 12%, so I could have kept in FD itself. Gold is a good investment but it is not the only investment methods out there. I am not saying that you should not invest in Gold, Real Estate, Stocks or Crypto. You should invest not in the single asset, you should invest in all of them. Might be you love the Gold investment, go ahead and invest 50% in gold and invest another 50% in other assets to diversify.
Fixing your finances is very much important because sometimes if someone is not diversifying enough, he might get into a big trouble if the certain asset class does not give the returns someone would have expected.
