Personal finances are something which is so important yet doesn’t get the kind of recognition it has to. You may have received pocket money during childhood, you may be earning money during your adulthood and might be getting income during retirement from pension, investments and help from children or other friends and relatives. But when you start earning, you will find yourself independent all of a sudden which results in you spending money impulsively.
You might think you know everything about money now that you are handling money. Yet there are some mistakes you can make which prove costly to you and your finances. Moneymindz, India’s First Free Online Financial Advisory
1. Keeping up with the Joneses
The society tells a billion things and does a trillion other things. It has an opinion about everything you do, wherever you go, and so on. It was once said by an unknown person “Too many people spend money they haven’t earned to buy things they don’t want to impress people they don’t like.” Often we try to impress others. He bought a new luxury car so you will also buy it even if you don’t need it or it doesn’t fit in your budget. She went to Europe for a month so you will also go there without planning, preparing, saving money for it. Your friend invested in X so you will also invest in it despite your budget and portfolio is different than his. This is so wrong. Get Personalized Advice On Personal Finance From Kuber Mindz or Give A Miss Call On 022-62116588
2. Not budgeting
You want to go on a trip to Europe (or wherever you want). So you have to budget, save properly and plan. Without budgeting, you are essentially walking down the road without even knowing where you are going! A budget has your income, expenses, savings, investments, insurance, financial goals and time frame. This will give you a map of where to go, by when to go and how to go. Moneymindz, India’s First Free On call Financial Advisory
3. Instant gratification
In today’s world, we have forgotten what patience is and why it’s important to be patient. We want everything to happen this very instant. We seem to have forgott4n that Rome wasn’t built in a day. We don’t even know that Haste makes waste. We are so overcome by greed that we want everything. Advertisements add fuel to this greed and exploit us to the maximum so that we can waste more money on things we don’t even need. In fact, we have forgotten the difference between needs (basic necessities) and wants (greed).
4. Not saving for Emergencies and Retirement
We give excuses like “I am forever young and healthy” and “My posterity will take care of me during retirement” to avoid planning for emergencies and retirement. We hardly realize how inflation is messing up our lives and that we need to beat it by investing sufficiently to be able to deal with emergencies better and live a retired life peacefully. Smart Financial Advisor, Kuber Mindz
These are some mistakes many of us commit to this day. If only the realization dawns upon us and we stop making these mistakes. You can find more information on how to manage money better by visiting www.moneymindz.com or giving a missed call to 022-62116588