Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now

Saturday, December 26, 2015

Financial Mistakes to avoid


Most people's New Year resolutions revolve around health and relationships, and generally exclude financial goals. They feel that they're doing everything right and that their financial situation is secure. However, experts beg to differ, claiming that most people aren't even aware of the financial pitfalls they're pushing themselves into.

It is said that every money decision you make will decide the state of your financial future. Bad financial planning can leave you at the end of your career drowning in debt, with no savings and no plan for retirement. While every person's decisions are based on their own unique perspectives, there are some common financial pitfalls that can land people in deep trouble. Here we list out 5 of the most common of these pitfalls that are best avoided by everyone.

5 Financial Pitfalls you must avoid

  1. Excessive Spending

While life should be enjoyed and passions followed, it is important to tread a middle path between miserliness and extravagance. The consumerist culture of today does not help, but it is up to each individual to resist falling into the trap of buying the latest gadget or car. Using credit cards is worse, as it is borrowed money and late payment can rack up massive penalties.


  1. Not Knowing your CIBIL Score

Your CIBIL TransUnion Score (or credit score) is a parameter based on which your credit worthiness is measured. It is what lenders check before deciding on whether to approve your loan application. Knowing your CIBIL score is essential to assess your standing with respect to interest rates. If your score is low, you need to take steps to improve it; being ignorant can pop up some nasty surprises while applying for a loan.

  1. Not Saving for Contingencies

We live in uncertain times, and it is never wise to overestimate your earning capacity. An emergency fund will have your back, should you fall upon hard times like losing a job, being ill or having an accident. An ideal contingency fund should have about 6 months' salary, or at least 3. This will help to support you and your family, till you are able to get back on your feet.

  1. Not Investing

While saving for emergencies is essential for personal financial planning, it is just as important to build wealth by investing in any of the various investment options out there. Locking up your money in an account just keeps it the same, while investing smartly makes your money work for you. And it helps to look at all the options, and invest according to your risk appetite and your age.

  1. Not Planning for Retirement or Illness

While it might be difficult for a 20-something executive to think of retirement planning, the truth is that the earlier one begins planning for it, an easier time they'll have while retiring. Illness is an unpredictable facet of life, and it helps to plan for medical insurance at a young age so that one is not left floundering when faced with enormous medical bills.

Being aware of one's financial health condition and working to keep it at an optimum level – these should be the basic financial goals of any individual. Avoiding these financial pitfalls will go a long way in keeping the future of you and your loved ones stable and strong.

Image source: Google, copyright-free image under Creative Commons License

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016 or Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call


Leave your comment with mail ID and we will answer them


You can write to us at

PrajnaCapital [at] Gmail [dot] Com


Leave a missed Call on 94 8300 8300

Post a Comment
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now
Related Posts Plugin for WordPress, Blogger...

Popular Posts

Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now