The year 2018 is about to end in a few weeks time. Its time for self-reflection- For self-growth, self-improvement. Money plays an essential role in our daily life. When it comes to Money Hacks, which can lead you towards financial independence, It sounds good. Isn’t it?
Here we are going to talk about Money Management. 10 bad habits to reflect upon and to correct this year. Let’s get started
Late Bill Payments:
These days most of us purchase so many services and subscriptions, which comes with its own billing dates. It’s very tough to track so many bills almost every month. Many of us forget it and end up paying penalties because of late payment. To avoid wasting money its recommended to automate your bill payments. Late
Lots of people are not even aware of the consequences of late repayment. Whether the reason is genuine or not but it simply going to hamper your credit rating. It will reduce your credit score (Cibil Score). In the future, it will be difficult for you to get a credit card or loan.
Making Minimum Credit Card Payments:
All major credit card offers a minimum repayment option which allows you to escape penalties. On Credit cards, the interest rate is very high. It is the most expensive form of debts. The less burden you take, the better it will be for you.
Splurging First, Saving Later:
save first, and then spend from what’s left. That’s the way it should work. Many of us these days don’t follow this rule. Our young generation spends first and then save what left behind. In order to be financially Independent one should focus on savings.
Family’s Life Insurance Needs:
Many of us take Life Insurance as a tax saving option. After paying taxes some of them even stop making the repayments. It’s absolutely not a good sign. If you have dependents, take time and understand your life cover needs.
Not Planning Taxes:
you should plan your tax and not left it for final days. By planning your tax earlier you can calculate your wealth and invest accordingly.
Not Buying Health Insurance:
Health is Wealth. Having a health insurance is very important nowadays. It’s important to protect your wealth from being depleted by sudden hospitalization.
Not Having A Budget:
Budget is the key to money management. You should plan your monthly incoming and outgoing in prior. The budget helps you to understand where the money is going and how you can save it.
Not Saving For Retirement:
one should plan their retirement earlier. Otherwise, when you become 60+ and you find there is no source of income, It’s very heartbreaking sometimes. Simply start investing for SIP and be hassle free for future.
Not Having An Emergency Fund:
Life is very unpredictable. NO one knows what’s going to happen the very next moment. It’s better to plan and save some fund for an emergency situation. It will keep you going in tough situations.