HomePersonal FinanceFinancial Planning7 Financial Fantasies you should avoid

7 Financial Fantasies you should avoid

money fantasy

Someone has rightly said, “Fantasy is a necessary ingredient in living”. However, that does not mean a flight of fancy works in real life. One has to be practical enough to actually implement something in reality to achieve one’s targets. No fantasy will help, until you sweat hard for your goals. We are herewith 7 Financial fantasy you should avoid.

Going through life expecting a large boom is being foolishly optimistic. It gives you false hopes and expectations and can prove to be a silly justification to making bad financial decisions. One should understand that there is nothing FREE in this world, there is no free lunch. Moreover, gaining something at the cost of nothing is fiction which will be revealed some day.

These financial fantasies are followed by people with the hope of discovering shorter and faster ways of getting rich.

  1. I will win big Lottery
  2. I will flip houses and become carorepati
  3. My child will help me in my retirement
  4. Why should I work I will be receiving grand Inheritance
  5. I will become big celebrity in bollywood
  6. I will settle in abroad and earn big money
  7. I will invest in stock and become wealthy

(1) I will win big Lottery

Winning a lottery sounds exciting and easy, but the chance of it happening is very less. It involves a high odds probability of winning. Having a 6-digit or 10-digit lottery number, involves permutations which reduce the probability of winning, still, millions play it every day.

There can be nothing easier than winning millions by just buying a lottery ticket. But there is no short cut to success.

Buying lottery tickets is a waste of money. In fact, the lottery can actually be a burden for the average person. He may waste too much money buying tickets in the first place as the chances of winning are incredibly low.

Even if you do win, you might not be able to embrace it for long as one day that money will get over, but your needs and wants will not.  It might just turn out to be a vicious circle as once you win, you will feel you can do it again and will start the process all over again.

Therefore, one must have the skills to manage money. One needs to understand that playing a lottery is not a profession but a mere stroke of luck. The windfall gain of the lottery must be handled responsibly.

(2) I will flip houses and become carorepati

Flipping items and assets may earn you a lot of money, but it requires tremendous experience in the real estate market to buy and sell the property at a feasible cost. This is entirely based on how much money one is capable of investing and how much cash is reserved for the intense period.

One should be capable of holding a property for an elongated period of time in case it does not get sold for 1-2 years. He must be in a financial position to hold the property and avoid being affected by the crisis. Thus, flipping houses is not a child’s play.

(3) My child will help me in my retirement

I have seen many people who believe that once they are retired their child will be ready to take his/her responsibility in terms of finance/money. I do agree that child will defiantly help financially when you are retired but if they are unable to do so you will be nowhere.  So instead of making fantasy that child will help in retirement one should plan retirement in manner that without help of anyone you can enjoy your retirement independently.

(4) Why should I work I will be receiving grand Inheritance

Many people fantasize about receiving a fat sum in inheritance on the death of their close relative. It is extremely selfish and shameful that a person would wait for someone to die and live off that person’s money rather than work and earn his own money.

In some cases, the one who passes away may also leave behind tons of debt for the next generation. Then, you will have to live your remaining life in misery. Thus, it is always better to depend on one’s own skills rather than waiting to get things easily.

(5) I will become big celebrity in bollywood 

Many people especially in Mumbai fantasize to become super star of bollywood like salman khan, sahrukh khan. Believe me chance of becoming bollywood super star like these are almost nil.

If you have skill & ability to become actor it is ok. But if you are struggling for more than year or so, you should stop fantasizing and start believing in reality.

(6) I will settle in abroad and earn big money

Many people in India still believe that abroad especially USA is place where they can earn big money; I do believe that USA is good place but if you have specific skill and job.

Don’t make fantasy in air that you will settle in abroad and earn big money. Situation at USA and other country in terms of job is not good. Job generation is big issue at USA. It is now Brain Drain time many people are coming back to India from USA.

(7) I will invest in stock and become wealthy

Investing money in stocks is not a bad idea it can make you wealthy too. But to invest in stocks, one must have the money. Picking the right stocks is possible with knowledge, experience and expertise. You can get this exposure if you study portfolio management and become intensely knowledgeable about companies or an industry. You need an eye for detail and some foresight to pick out a stock that may become the next big thing.

I have seen many people invested in stock market to become wealthy in 2008 still they have not come out from loss. Thus, before investing in a particular stock, you must consult an expert if you are not sure of your decision.

It is possible that one believes in himself. In today’s world, there is nothing which one could completely rely on, may it be the rising market or lottery tickets. The best person to rely on to achieve your financial goals is you. Dump your financial fantasies, work hard, spend and invest money wisely, and turn the odds of financial success in your favor.

Shitanshu Kapadia
Shitanshu Kapadia
Hi, I am Shitanshu founder of moneyexcel.com. I am engaged in blogging & Digital Marketing for 10 years. The purpose of this blog is to share my experience, knowledge and help people in managing money. Please note that the views expressed on this Blog are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment , tax, financial advice or legal opinion. Please consult a qualified financial planner and do your own due diligence before making any investment decision.
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