5 Financial Mistakes You Might Have Already Made

[Mika]

Mistakes you commit in your life might cost you dearly, you might encounter even more loss if these mistakes are related to your finance.

Here are 5 financial mistakes most people make. Check whether you have made these mistakes or not.

Not starting early: If you see the self-made billionaires, you will find that most of these people started early. Some of these people were still in school when they started making money.

Investing in Fixed Deposit: While keeping your money in fixed deposit accounts will give you some returns but investing money in other markets like stocks will give you a better return.

Not tracking your expenses: If you don’t track your expenses, you will be spending more money than you actually need to,

Buying products on credit: You can easily buy products on credit and paying in installments does not mean you actually have to.

Not having a budget and an emergency fund: You need to budget for your finance and have an emergency fund.

 

[Heartstrings]

Good one, thanks for the insight and I know people will learn one or two things from your post. I made a mistake of not starting early, right before I started my tailoring business then before it crashed based on unforseen circumstances,if I had started early and saving up more,my financial status would have been better than this,when my business wasn't there anymore,I started using up my savings and trying to get on my feet,but I made a second mistake again by not taking online business serious, despite the fact that I like it so much,I let my grief took the better part of me.

Not starting early could cause one so many life damages, some people thinks they have enough time on their hands but never knew the world wait for no one. Whenever an opportunity to start early present itself,grab it with your two hands to avoid future regrets. You can't just get rich in a day automatically.

 

[arunima25]

Those are some good points. I totally agree with the four of them but disagree( or rather I would say that differ a bit) on the point of fixed deposit. Well, it will differ from person to person and my explanation comes from my personal experience. I will say that investing in fixed deposit might not be the best thing to do to get more money. But it's not a mistake or not at all a dumb thing to do as many feel. Stocks and markets have better returns. But then they do have a risk associated with it. Different people will have different risk appetite. Also, one is willing to take a risk when one has earned enough and has some surplus to risk. Many beginners might not be willing to take a risk with their little money and they opt for a traditional and safer sort of investment like a fixed deposit. Later with more money at hand, one can take some calculated risk to make more money from their money.
You are absolutely right that a financial discipline and tracking budgets habit should be inculcated from a very young age. If these are missing, no matter how much one earns and saves, one can become a pauper from king in no time.