3 mistakes that might haunt you in the future!

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Making mistakes with our money is something we all are wary of but can never really be sure of avoiding. (Thinkstock) Making mistakes with our money is something we all are wary of but can never really be sure of avoiding. (Thinkstock)
SummaryMaking mistakes with our money is something we all are wary of but can never really be sure of avoiding.

talk about post graduate degrees.

Loaning More than is Affordable

Itís but natural to give in to aspiration in life. Whether it is going for a swanky car or buying your dream house or anything at all, it requires a great deal of financial planning to turn these material dreams into reality.

The truth is that one has to very cautiously analyse oneís sources of income from salary and other means before applying for a loan. If you have not planned and saved for your house or are getting into a deal prematurely, according to your financial plan, then you tend to take a loan, more often than not. Home loans are easy to get in India in todayís date. The catch is the EMIs that you have to pay for a long duration every month to clear that loan. Now, you have to make sure that even if you need to switch to a lesser paying job or divert a lot of money that you earn to an anticipated cause, like your childís education or familyís health, etc., you understand that it requires a certain amount of financial backing to knock off those EMIs.

Today, a loan on the smallest home item is possible. However, whether or not it makes sense for you is the question you need to ask yourself.

Failure in Retirement Savings Scheme

In-depth financial planning involves saving for your retirement and keeping money in hand for contingency.

To avoid failure in your retirement savings, one must take care of the following steps:

* Save 10% of your income. If you are a regular salaried pension, it is a good idea to save about 12% of your income every month, which is what the EPF scheme requires you to do compulsorily and rightly.

* Increase investment as your income increases. That helps a lot. Most of us experience good hikes in salaries from the mid to later parts of our careers and can afford to invest much more at such points and, hence, secure the future.

* Carefully manage your investment portfolio at every stage of your life.

Understanding the common mistakes that we make with money ensures that we identify the common loopholes in our judgment and be aware of our money, at all times.

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