What money traps should one always avoid ?

House loan is an investment, not trap, you are actually buying piece of land for emi.

My father bought a home for 8 lacs in 2005 that too on emi, now that home is worth more than 1.5 cr,

For usd: purchase was 10000 to 12000 usd as per current rate

Current price: ,200000 usd
Your dad bought a flat when the rates hadn't hit saturation point. At current prices and interest rates you'll be losing more than you'll be gaining because from hereon the appreciation in property prices won't be that much, at least in the major cities in India.
 
Your dad bought a flat when the rates hadn't hit saturation point. At current prices and interest rates you'll be losing more than you'll be gaining because from hereon the appreciation in property prices won't be that much, at least in the major cities in India.
It was told to him 15 years ago, trust me you can never predict purchase and inflation. Also btc is saying hi.
 
It was told to him 15 years ago, trust me you can never predict purchase and inflation. Also btc is saying hi.
There's no land left in major cities for more construction. There will be new cities popping up now and there's money to made. But like I said, if you take a loan for 20-30 years at current rates, you'll be paying more than double the price of your apartment. And your apartment may or may not double in price in 30 years, which means you'll not be making any profit for sure.
As an example, my sister bought an apartment for 1.10 cr 6 years back in Mumbai and it's current price is only 1.15 cr. Thankfully she didn't take any loan as she had the money to buy it in one shot. But those who bought it on loan, they'll not be getting the kind of appreciation your dad got.
But most people buy homes hoping that they'll spend their entire lives there, so no one thinks of it this way.
 
Marriage. The biggest money sucker out there. Bitches be walking away with half your money. The probability of finding the right girl is so low these days, it sucks.
 
I think house loan is one of the biggest traps.
Do you have an house? Or do you rent? Or live with parents?
It may ultimately also depends where you live...
Imagine renting $300 a week, where you would also pay mortgage $300 a week.
at least 30 years down the line, you will own that house. Can't say the same about renting tho :)
 
College fee is a big burden on finances of family even for parents who are employed in govt sector. Unless your parents are employed in Google, Microsoft or Amazon and taking salary of INR 1crore per year in USA don't bother going to college.

Instead of going to full time college enroll in distance education and save the college fee in bank account for future usage like launching your online projects.

And you don't need a technical degree to get web developer job. Instead for jobs you need real life skills which are not taught in the colleges even in USA.

And I think you should put health first before money.
 
Very good question. Basically, anything you spend money on excluding basic body needs is a money trap.
All the money you spend on pleasures is a Money trap.
Unless you don't make money while you spend money
 
Do you have an house? Or do you rent? Or live with parents?
It may ultimately also depends where you live...
Imagine renting $300 a week, where you would also pay mortgage $300 a week.
at least 30 years down the line, you will own that house. Can't say the same about renting tho :)

The rent is also not going to be the same for all 30 years, it will increase over the years. In 1990 the median rent in America was $450, by 2020 it was up to $1,100.
 
Very good question. Basically, anything you spend money on excluding basic body needs is a money trap.
All the money you spend on pleasures is a Money trap.
Unless you don't make money while you spend money
How can one make money while spending money ?
 
Invest in actively managed mutual funds. do SIP over 30 years period in 3-4 great mutual funds.
While Cost of Living increases each year, & lets be all honest, the current ongoing war is a huge burden for every single country, we all felt our daily life essentials price increased.
Doesn't seem very "smart" to me.
 
you gotta know the real cash ≠ market cap . So many people r trapped in the illusion of market value. aka paper money
 
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