Financial Faux Pas: Common Money Mistakes To Avoid

As we enter the new financial year 2023–2024, it’s crucial to be aware of the typical monetary mistakes that can severely harm your finances. Spending excessively on credit cards, failing to save enough money for emergencies and tax preparation may cost you dearly. Vardan Pandhare shares the top money mistakes to avoid this fiscal year

- Vardan Pandhare

Fulfilling life’s objectives is the aim of every person. The problem is that most of such objectives require money, and sometimes lots of it, as for example, buying a home, paying for a child’s education abroad, vacationing in a foreign country, and so on. The path to making money for all such activities and events is, unfortunately, not a straight one. We all make financial blunders which, instead of creating wealth over a given time, erode it. To guarantee that you have the resources to realise your ambitions, financial preparation is crucial. A well-planned financial strategy helps provide clarity in life. Organising your finances entails avoiding money mistakes and figuring out how much money you will need to invest, spend and save over the coming years. So, let’s uncover the top money mistakes we all make.

Plan, Plan and Plan More

Remember, Rome wasn’t created overnight. It took planning, designing and implementation. Similarly, planning your finances is no different from other wonderful things in life, but they all require time. A plan outlining your ultimate purpose and an approachable goal is absolutely necessary. Most people invest without a logical objective and only seek tax benefits or maximise earnings. However, investments must be executed with a final objective in mind. For instance, while pursuing an advanced degree, we often think about how this specific programme would help us reach our professional objectives. Here, you decided on the degree after careful consideration. Similarly, how can you invest without doing the same for your finances?

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