10 MAJOR Personal Finance Mistakes to Avoid

10-major-personal-finance-mistakes-to-avoid

Managing personal finances or rather learning to manage personal finance is a huge part of ‘adulting’. Like it or not, we won’t always have caring parents and responsible siblings taking care of us all the time. Managing our finances properly is a big step towards an independent life, for everyone. In fact, if you manage your earnings effectively, you effectively use your money and also save a lot for the future. Therefore, managing personal finances is a skill that you must learn as early as possible. But we all make mistakes in managing our expenses. And to help you with it, here are 10 MAJOR Personal Finance Mistakes to Avoid, at any cost.

Personal Finance Mistakes to Avoid

#1 – No monthly budget 

If you are a newbie out of home for the first time, this is for YOU. If you are someone who doesn’t track their expenses/keep a monthly budget, then start doing it. Just spending extravagantly will bring in a lot of stress and embarrassment. Not tracking your expenses will soon land you in trouble.

You should always maintain a monthly budget book. Practice this habit and you will be surprised to see by the amount you are saving. I learned it the hard way. You must learn from my mistake.

#2 – No emergency funds 

Problems come unannounced in our life, always. It is important to set aside some money for emergency times. Maybe you need to cut some of your lesser needful things from your expenses list. OR maybe you’d notice that you have been spending quite a lot on unnecessary items! Trust me, it might be difficult to not buy something tempting and save money for emergency times BUT it saves you from a lot of mental pressure and embarrassing scenes.

cash crunch

#3 – Unnecessary expenses

Sometimes we buy things not because we need it. Sounds familiar? Yes, sometimes we buy just to just show-off our wealth. Hearing compliments from others can be a pleasant thing but it is temporary. Always remember there are very few people that help you when you are financially broke and it is better to cut these unnecessary expenses from the list than to regret later.

“Beware of little expenses. A small leak will sink a great ship.” – Benjamin Franklin

And that brings me to my next point – Credit cards.

#4 – Excessive use of credit cards

Shopping trendy items is a weakness and tempting of a lot of people. Nothing can be worse than having a credit card with shopaholic people. Credit cards let you spend extravagantly while you are burdened with a huge amount of debt, unconsciously.

Your solution? Do NOT take your debit cards and credit cards while shopping. Instead set up a budget and take the amount in the form of cash. This will prevent you from spending lavishly. This one step will help you a lot.

#5 – No insurance

Another major Personal Finance Mistakes to Avoid for youngsters with a happy-go-lucky attitude. Future is unpredictable. You should also prepare yourself for bad times too. Invest your money in health insurance, or life insurance, etc. It is always advisable to take some steps to secure your and family’s future. Also, it saves you from paying a huge same if unfortunately, you have to face a bad time.

#6 – No plans for post-retirement

“Na Biwi na bacha na baap bada na maiya, the whole thing is that bhaiya sabse bada rupaiya”

We all have heard this popular song but haven’t realized that it is the harsh reality of today’s world. You can’t trust anyone in money matters. Therefore, it is good to save for your old age days than to beg in front of someone.

For all those Gen Y and Gen X people, please think about life post-retirement. 

#7 – No savings

It is the most major personal finance mistakes to avoid for a youngster. Almost every youth does this as they start earning. We all are excited to buy gifts for our loved ones, upgrade our lifestyle as soon as we start getting our salary. But as early you start saving it will be helpful for you in future or any emergency.

“A penny saved is a penny earned.” – Benjamin Franklin

#8 – Investing without knowledge

People who trust easily are trapped by the various investing scams. They end up losing their hard-earned money. Never invest in anything you don’t know about. You can consult some financial experts but still make your money-decision wisely.

We know that the thing your colleague does to save money sounds amazing. We know that you want to take a vacation like your friend. BUT, It is better to not earn any profit than to lose all your money, right?

#9 – Ignoring the tax amount

A large amount of our income goes to the tax department. It is important to track your tax amounts and try to collect every information regarding various tax-exemption policies by the government.

#10 – Spending lavishly at weddings

In India, a simple wedding or a royal wedding, people always point out flaws. It is time to change the mindset. Stop pushing the bride side for a lavish wedding and burdening them with huge loans. After all, it is the love, understanding and trust between families that will make their bond stronger and not the expensive clothes, décor, food etc. 

Also, consider if it is your own wedding or not! Why should you wear a crazily expensive and uncomfortable attire that your acquaintance’s family would approve of? 

I hope that these tips on ‘Personal Finance Mistakes to Avoid’ will prove helpful for you. You would soon become a master in managing your expenses. Remember that it is okay to ask –  How to manage personal finance?

To read more about personal finances and related tips, visit our blogs on personal finances. After all, better than ask than regret, isn’t it?

Rakhi Joshi is a recent college graduate with a Bachelor's Degree in Mathematics. She loves dancing, cooking, travelling and has recently developed an interest in reading books. She has a keen interest in writing and having discussions that expand her ability to think deeply.

23 thoughts on “10 MAJOR Personal Finance Mistakes to Avoid

  1. UserbolaVIP Alternative Link
    By means of online gambling online games, you may
    get income as well as amusement without having to be able to leave your convenience at home.
    One of the sites which offers the greatest gambling online games inside Indonesia
    is UserbolaVIP. Through this web site, you can discover different types of interesting plus popular
    gambling video games for example soccer betting, online slots, online casino, lottery, online poker, arcade
    games and so on.

    Unlike other betting sites that you could find on the web, UserbolaVIP gives a person various conveniences in online
    gambling games. As a new member, you will end up provided a lot of convenience in signing up, getting
    lucrative additional bonuses, including an alternate
    UserbolaVIP link that you can access and never have to experience
    problems being blocked or perhaps having to use a new VPN.

  2. Along like the times, situation developments have then developed throughout
    the world. The number of supplementary businesses that we
    don’t even know of exist because there are too many of
    them. Similarly, the gambling business, of course there are plus many names of gambling agents that have sprung up.
    However, the emergence of these agents does not always find the money for a fine
    other for gamblers, both upscale and beginner gamblers.
    as soon as correspondingly many gambling agents popping up, categorically
    not every agents can be trusted because too many gambling situation worlds want to tolerate more profits without
    thinking practically the long-term impact. Both members and for their own business.

    Ensuring Bandar Legality

    Therefore certified agent2018 wants to present
    an simple quirk to find a trusted gambling agent site.
    The take aim is that you can have an idea, how to handle the situation. subsequent to you are in a divulge already trapped by fraud
    traps. Because we every know in that viewpoint it’s impossible to acquire out soon. You are next complacent, in view of that you are not familiar that you are
    yet under the distress of fraud from irresponsible agents.

    To find out the approved gambling agent is unquestionably easy,
    create certain afterward you visit the gambling site, whether it’s a gambling site or similar, it’s a good idea to ask the customer sustain whether
    the site is recognized or not by asking for proof of ID number or member that can prove the existence of the site recognized soccer gambling is legitimate
    and realizable to operate, usually an qualified online gambling site.

    Always has an office in the Philippines and is below the aegis of Cagayan or Pagcor, and has
    legitimate immunity and authority. Which is protected
    by the let pass of the Philippines, because the by yourself country in Asia that is clever to present licenses for online gambling event sites, is single-handedly in the Philippines.

    simple plenty right? To locate a trusted online soccer betting site.

  3. Pandora188 was founded in 2020 is a other site following an international class that is balanced
    with sbobet and maxbet. It has services and bonuses that
    will create members pleasant playing on the Pandora188 site.
    The services provided consist of Pandora188 sentient chat,
    an different join to login Pandora188. In order to create it easier for members to make
    transactions such as deposits and grants to the account.
    This is a agreed useful power for members.

    As one of the gambling sites that have won the trust of Indonesia, Pandora188’s task is to allow the best help
    and playing experience. From the coming on of the registrant, the first bump
    to behave at Pandora188.com. That artifice bettor can freely act out without painful from threats such as hacking, scamming or the third one is phishing.
    Because today there are appropriately many sites that carry out these deeds
    to gain them. To prevent this from occurring Pandora188 has a solution, along
    with others.

    Live chat Pandora188 swift 24 Hours

    One pretension Pandora188 prevents comings and goings that hurt members gone scams, phishing and
    others facilitates conscious talk for members asking questions very nearly products, games and promotions that we provide.
    We are ready to encourage 24 hours each meeting.

  4. Ubobet is an internationally trusted gambling dealer before 2001
    until now. By holding qualified entrance for online
    gambling sites that come up with the money for various types of betting games.
    Games available augment Sportsbook, alive Casino and Cockfight.
    Ubobet has reached the entire world gambling publicize including the Indonesian market.

    At present, every daylight there are more than 100 thousand players who
    entrust their bets in the city of Ubobet.

    Ubobet List Site

    To register an account, players cannot pull off it directly upon the Ubobet site.
    In supplementary words, prospective players must
    register through the recognized agent site for Ubobet listings such as Pandora188.
    By using Pandora188 ID the artist can bet on this city.
    How to register is quite easy, just by filling
    out the registration form correctly. After that make a buildup of at least 25 thousand, next the
    artist can bet on Ubobet. all artist who joins as a aficionado at Pandora188 is entitled to a freebet bonus and also a
    daily growth further without exception.

    Ubobet Login

    After registering, players can log in on Ubobet in two ways.
    The first is through endorsed followers who have collaborations
    such as Pandora188. Because the two sites have already formed a partnership, which means that
    betting on the Pandora188 site is the same as betting on Ubobet directly.
    Or by the second artifice you can directly log in to the Ubobet site
    if you already have an account. How to log in Ubobet is quite easy, just
    enter your ID & password correctly.

  5. Hi! I could have sworn I’ve visited this blog before but after looking at a
    few of the posts I realized it’s new to me. Anyways, I’m
    definitely pleased I discovered it and I’ll be book-marking it and checking back often!

  6. Good day! I could have sworn I’ve been to this website before but
    after reading through some of the post I realized it’s new to me.

    Anyways, I’m definitely glad I found it and I’ll be bookmarking and checking
    back often!

  7. Just desire to say your article is as amazing.
    The clarity in your post is simply spectacular and i could assume
    you’re an expert on this subject. Fine with your permission let me to grab your RSS feed to keep up to date with forthcoming post.
    Thanks a million and please continue the gratifying work.

  8. I was suggested this website by my cousin. I am not sure whether this post is written by
    him as no one else know such detailed about my problem.

    You’re amazing! Thanks!

  9. Thank you for another informative blog. The place else may I get that kind
    of info written in such an ideal way? I have a challenge that I’m simply now operating
    on, and I’ve been at the glance out for
    such info.

  10. Greetings! I know this is kind of off topic but I was wondering if you knew where I could find a captcha plugin for my comment form?
    I’m using the same blog platform as yours and I’m having trouble finding one?

    Thanks a lot!

  11. Thanks a bunch for sharing this with all folks you actually realize what you are speaking about!
    Bookmarked. Please additionally discuss with my website =).

    We may have a link exchange contract among us

  12. We’re a group of volunteers and opening a new scheme in our community.
    Your site offered us with valuable info to work on. You’ve done a formidable job
    and our entire community will be thankful to
    you.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top

Share This

Share this post with your friends!