We all do a lot of financial mistakes during our lifetime. However some of them fall into the blunder category which not only ruins our finances but also puts us back many years behind in lie journey. One should avoid all these blunders at any cost, some of them are listed below:
- Don't keep track of your cash flow from where money is coming & where it is going.
- Not maintaining an emergency fund for contingency needs can put you in embracing situation to borrow from friends & relatives
- Taking health & life for granted. Understand there is no guarantee of health & life both and health deteriorates faster than your anticipation. Need to protect it with all kinds of adequate health, life, critical & personal insurance to provide comprehensive coverage. One accident can shatter all your financial goals. The cost of treatment is huge nowadays.
- Not setting financial goals early in life. Financial planning is a must for everyone due to uncertainty in life is extremely high.
- Spending most of your savings on showoff like parties, marriage expenses, costly holiday trip, fancy stuff, luxury car & maintaining a high-class lifestyle
- Fail to understand the difference between asset & liability. Keep on accumulating liabilities considering as assets.
- Procrastinating your investment & insurance decision and/or hesitate to take corrective action. Time is precious having value & power. Once it is lost can not be restored again.
- Taking decision-based on emotions - Frear & Greed, should not rule your investment decision. Blindly invest their hard earn money in the hope to double in a short span of time and lose everything eventually.
No comments:
Post a Comment