Many of us make these 5 common financial mistakes in our life and we regret these mistakes later in our life. Here are these 6 financial mistakes –
1- Not Buying Health Insurance
This is the biggest mistake which most of us make in our life. In Today’s time as many health problems are there and no one knows that when any person can get in a health emergency and one health emergency can wipe out lifetime savings of a person and may be possible a person can also be trapped in debt. So it is important to buy health insurance.
2- Not making Plans for achieving Financial Goals of Future
This is the second mistake which most of us make. We thought many things about future that we will have our own house, our own car, Children’s higher education, Children’s Marriage and last about our retirement but we don’t make any plan for achieving these goals and when the time of these goals comes we don’t have anything in our hand and we just rub our hand. Financial planning means calculating how much amount is required in the future for accomplishing financial goals. The time horizon of investment so that we can take a calculated risk.
3- Considering Investment and Saving as one
This is also the most common financial mistakes which most of us do. We consider Amount deposited in a savings account as an investment but investment and savings are both different things. Savings will give you only a 4% return but the investment will give you a minimum 10% compound. You should create your investment portfolio according to your age and risk appetite. If possible you can take the help of your financial advisor.
Also Read- Financial freedom meaning and How to Achieve it
4- Dependency on Loan
As technology advances and lifestyle is becoming modern most people now purchasing everything on EMI or with loan . You should take loan like SALT IN FLOUR . So that it loan cannot disbalance your daily expenses . You should try to decrease your EMI time to time
5- Doing Unnecessary expenses
Most people do this silly mistake. They do show-offs and for doing these show-offs they don’t that they do unnecessary expenses. Unnecessary expenses mean doing outing on a frequent basis. Going to a restaurant every week. We are not saying to stop all this but you should do proper planning for all this so that you should not regret later.