This happened to me back in 2016. I'm an salaried person from middle class background, and at the time of this incident, I was 29. I'm too conservative in nature and so is my wife. We (me and my wife) had a saving of around Rs. 7.5 lakh together at the time of wedding. In next one year, we saved some more money and in total we had 11 lakh. This was all we had, no other assets, bank balance, shares, FDs, nothing at all. This is really a very big amount for us.

A new co-operative credit society, having head office in Nashik (Maharashtra) had open their new office in Nagpur that time. They offered attractive returns (13%) on FDs and I fell for it.

I invested of the money we had at in the society. I was aware of the fraudulent practices in such societies and how the money is looted by them. 

But then I thought, the society is newly setup in Nagpur and they won't make any fraudulent practice immediately after entering the market. I thought, they will require some time to earn fame and even if they're corrupt, they will show those practices after they're setup well in market, which will take some years. Considering this, I decided to invest there. I was very clear that I will keep money invested with them only for one year. 

This was crystal clear aim I had. But then within just few months, news spread about the malpractices in the society and and somehow society ran out of money, and entered into liquidation (details later in another story).

Me, wife and parents are till now in big trauma that we lost such a big amount, but we can't do anything now. Government officials working on the liquidation process are sleeping since 3 years and we have almost lost all our money (a current runs through my body even when I'm saying this)

So coming to ultimate question - What was your biggest financial mistake?

1. I fell for unrealistic returns. I had doubt, still I fell for it.
2. I trusted a co-operative credit society despite of knowing their practices (in India).
3. I invested all my the money in the same instrument.
4. I took a risk beyond my capacity.

Advise to readers:

1. Do not fall for the unrealistic returns, especially when they're promised by non-trustworthy sources.
2. Never invest all your money in co-operative credit societies, no matter how reliable they seem to be.
3. Never invest all the money in any single instrument.
4. Never take risk beyond your capacity.