Nowadays, when making financial decisions, many people adopt a “DIY” (Do It Yourself) mindset—the belief that they can handle everything on their own.
They have a mobile phone in hand. They have access to Google, YouTube, and ChatGPT.
Friends, relatives, and neighbors—everyone offers advice.

There is an abundance of information available.
However, there is one crucial question that is often overlooked by everyone:

What exactly are we saving money for?
And what is our actual financial capacity—our true strength?

Decisions made without first determining these two factors constitute “Financial DIY.”
And over time, this very approach can evolve into a significant risk.

*The Real Pitfall of DIY*

When making decisions using the DIY approach, individuals tend to listen to others,
but they often lose sight of their own household and their own specific circumstances.

They purchase a financial plan simply because someone recommended it;
they buy an insurance policy after watching a video;
or ​​they invest money solely because a friend suggested it.

However, because they fail to take into account factors such as their income, source of livelihood (farming vs. employment), family responsibilities, health issues, or their children’s education—
they inevitably face difficulties down the road.

*Insurance: The Most Dangerous Form of DIY*

Today, many households possess insurance coverage.
Yet, if an unexpected event occurs, the family often finds itself in financial distress.

This happens because, while they do have insurance, the coverage they hold is insufficient.

When engaging in DIY financial planning, people often:

Purchase insurance solely for the purpose of saving on taxes;

Mistakenly view insurance as a savings or investment vehicle;

Fail to read the fine print regarding what is—and is not—covered under their health insurance policy.

In reality, insurance is a form of security.
Its purpose is not to grow your wealth, but rather to safeguard your family during times of crisis.

The gravity of this mistake becomes apparent only when one attempts to file a claim—but by then, it is already too late.

*Mutual Funds: A One-Size-Fits-All Solution Does Not Exist*

Hearing statements such as, “This fund is excellent,” or “This fund has yielded high returns,”
many people rush to invest their money without further inquiry. But the truth is this:

Not every financial plan is suitable for every individual.

Saving money yields no real benefit unless one first determines what they are saving for.

An individual with a low tolerance for risk often ends up withdrawing their funds prematurely.

That is precisely why many people lament:
“I invested money for so many years, yet I saw absolutely no return.”

The Stock Market: The Pitfall of Overconfidence

“DIY” (Do-It-Yourself) stock trading typically involves:

Acting on advice from friends;

Trading based on messages received on one’s mobile phone;

Buying stocks simply because one saw them mentioned in the news.

However, the average person rarely manages to sustain themselves in this arena.
This is because haste, fear, and greed often lead to poor decision-making.

Gold and Real Estate: High on Emotion, Low on Logic

We typically purchase gold for festivals, weddings, or as a measure of security.
However, we often fail to account for the costs of craftsmanship, storage, and the potential loss incurred when selling it during a time of need.

When buying a home, our primary concern is usually: “Can we afford the monthly installments?”
Yet, crucial questions—such as whether the legal documentation is sound, if the property can be resold in the future, or if one can access the capital invested in it during an emergency—
often go unasked.

A single erroneous decision can become a financial burden weighing heavily on one’s mind for years to come.

Loans and Purchases: A Silently Growing Problem

The allure of “low monthly installments” or the “buy now, pay later” mentality—
causes expenses to spiral upwards.

Income may rise,
Expenses may rise,
But actual savings fail to materialize.

And by the time one realizes the magnitude of this problem, it is often already too late.

We would never take medication without consulting a doctor;
yet, when it comes to financial matters, we all tend to appoint ourselves as experts.
therein lies the greatest risk of all.

Harshal Kothari
International Certified Finance Coach
+91 9006004700