Common financial mistakes to avoid
Well, one of the greatest successes in life lies in how to deal with money wisely. Sometimes, we may make some money mistakes that will eventually make us think over the approach seriously. Now here are some of tips to make wise financial moves, especially for the millennials.
Not maintaining a budget
Well, if you are in your 30s, you may make the mistake of not maintaining a budget. That is understandable. That said, ensure that you have a budget and follow it consistently. When spending goes out of control, instead of being tempted to stop writing the budget, you think of ways to plan your spending. Your decision should always be in the positive side and not the negative side.
Not having track on how you spend
This is the main mistake that we all tend to do. This is related to the previous point. When we don’t keep track of our spending, our long-term goals are affected to a great extent. You have to take every effort to accumulate savings and setting aside some money for the future.
Not maintaining an emergency fund
You may have expenses for the house which is one of the major expenses. Your job may also may be affected due to COVID-19. During such instances, it is always wise to maintain an emergency fund. From your monthly salary, you can set aside a considerable sum for these emergencies.
Not having insurance
Insurance plays a great role in financial well-being. Nobody likes to think about illness and life-threatening happenings, but having an insurance will go a long way in giving your peace of mind during stressful times. Not having insurance is a mistake most of the millennials do. Insurance just takes the role of a safety net that gives you and your family the financial support when things are not right.
Not negotiating your salary well when starting your job
This is one of the major mistakes people at their 20s do. When you don’t negotiate your salary properly in the early stages itself. there will be problem at the later stages. Hence, it is suggested that you don’t go for a really low salary when you start your job.
Not having retirement investment
We generally don’t like to age. That is cool. However, what about thinking about it from the financial point of view and saving some money for retirement purposes? We all want to be independent, and thus retirement saving is indeed a great boon.
Having credit card bill that you cannot afford to pay
Everyone will agree with me when I say that credit cards are the most attractive yet dangerous debts one can get in. There are indeed several benefits for credit cards, but if you are using it for every purpose then it is something to think over. The interest rates charged by credit cards are exorbitant if you miss an EMI.
Not having a solid financial plan
It is better to start your financial goals early in your 30s. Even at 40s you can begin doing it. A sound financial plan at 30s and 40s will give you the satisfaction that you have started planning financially early in your life. For some, at 30s they may be at the prime of their success, while for some at 40s they will be.
It is not a matter of how much income you gain. It all lies in how you spend it. When you start planning your finance carefully, you will realize that you are rich. Let your best spending be your saving!