10 Financial Mistakes That Are Making You Poor

BY MONEYCONTROL NEWS

May 23, 2024

SAURAV PANDEY

Not Tracking Finances

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Many people don't keep tabs on what they earn and spend, which makes it tough to save up and plan ahead.

Comparison Spending

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Feeling pressured to match others' lifestyles can push you to overspend on things beyond your means. Focus on your own financial goals and steer clear of comparing yourself to others.

No Emergency Savings

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Unexpected events like medical bills or job loss can throw your finances off balance if you're not prepared. Aim to set aside enough to cover 3-6 months of living expenses.

Living on Salary

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Being stuck in this cycle can keep you trapped in debt. Look for ways to boost your income or cut down expenses to break free from the salary-to-salary cycle.

Excessive Debt

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Credit card debt, especially with high interest rates, can quickly become overwhelming. Work on minimizing your debt and pay it off as soon as possible.

Not Investing for the Future

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Over time, inflation can erode the value of your money. Invest your savings wisely to grow your wealth and achieve your long-term financial goals.

Ignoring Retirement Savings

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Delaying retirement savings can leave you short when the time comes. Take advantage of retirement plans offered by your employer and start saving as early as you can.

Inadequate Insurance Coverage

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Unexpected medical expenses or accidents can hit hard financially. Make sure you have sufficient health, life, and disability insurance coverage to safeguard against these risks.

Falling for Quick-Fix Schemes

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Beware of schemes promising fast wealth; they're often scams that'll leave you worse off. Focus on building wealth through reliable, long-term strategies.

Avoiding Financial Guidance

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Seeking advice from a financial advisor can help you craft a tailored financial plan and make informed investment choices. Consider consulting a fee-only advisor who prioritises your interests.