InvestorQ : What are the common financial mistakes that one should avoid?
Roshni Hegde made post

What are the common financial mistakes that one should avoid?

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Roshni Hegde answered.
1 year ago
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Do you think about a great life, a beautiful vacation, and a promising future for you or your loved ones? Well, I dream a lot! And I always try to ensure that through planning and knowledge I achieve them on time. I believe to be safe than sorry.
Here are five common mistakes that most of us may tend to take and disturb our financial years;

Avoid creating an emergency fund:
If you an employee, Pay-cuts and job scarcity can happen at any time. This mistake is even committed by people having an enormous amount of cash flowing into their accounts. Before spending being carefree one should think about how would you manage during the time of crisis? Thus make sure that you have a fixed emergency fund in your bank account or at home.

Early investment:
It may sound saving money like a marathon than a race to you. But it’s always best to get a head start. Ideally, the right time to start your investment right after your first paycheck. If you cannot invest then you must start your saving.

Not having a plan:
Constructing a plan is what many tend to avoid. Spend at least two hours of your planning your financial goals. Setting a schedule and making financial planning, your priority can save you from stressful money life.

Spending on your home equity than on investment:
Many a times, I have witnessed people putting their maximum money in making home infrastructure look good. Don't make the mistake of paying more for your home than its worth. Instead, invest in various financial instruments.

Using credit cards to meet your extra bill payments:
If you put your Credit card only to cover the shortfalls in your spending, then it can prove good for your financial books. If not, then it won't take much time to turn you in debt. People get habituate to spend more than they need when they pay it in credit. Also, it is quite easy to avoid attention to your budget while constantly falling back on your credit card. All you need to save your financial years by kicking back your credit card habit.


To put all in nutshell, I would say that don't delay to take the step. Pull up your socks, and monitor all your expenses. Be wise and avoid debts to your list of payments. Finally, save your money for what you earn and spend your time developing a sound financial plan.

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