Why make others rich than prosper yourself?

Sanjay Matai

Don't!
Don't be Lazy!
Don't be Ignorant!
Don't make others Rich! All you need is to follow some amazingly simple financial rules....rules that will ensure your prosperity. Rule No.1 When you take a home loan, pay the maximum EMI possible based on your monthly budgets. This would save you lakhs of rupees in the total interest paid out by the time the loan is fully repaid. Most people opt for lower EMIs and end up making their bankers rich.  Rule No.2 On similar lines as Rule 1, pay the maximum down-payment that your pocket allows. Lesser the down-payment, more the loan and more the loan, more the interest! Again, your bankers have all the fun...at your cost. Rule No.3 Gold ETF will give you gold at international prices. Your jeweller will give you gold coins/bars with 10-20% mark-up. Absolutely no difference in the product, yet vastly different prices! Jewellers are glittering rich. And you...? Rule No.4 Don't buy mutual funds through a distributor. Go direct. Direct Plans charge lower annual fund management expenses than the Normal Plans. Over the years, this difference will translate into monumental sums. Why let your distributor take it, when you can easily pocket it yourself? Rule No.5 Instead of buying a single health insurance policy with a large cover (of say Rs.10 lakhs), buy two policies — a standard policy (of say Rs.5 lakhs) and a top-up plan (for the balance Rs.5 lakhs). Same Benefits, Lower Premium! No point in paying more to the insurance companies! This, of course, is not an exhaustive list. There are many more ways to avoid making others rich; and in the process filling up your coffers. Any such ideas you would like to share with the others? Sanjay Matai is a personal finance advisor and an author.