Skip to main content

Financial Mistakes to avoid

 financial-pitfalls
 

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.

good-credit-score

  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

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...

ICICI Prudential Value Fund Series I

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   Performance of the scheme will be benchmarked to the S&P BSE 500 index ICICI Prudential Value Fund is a closeended equity scheme. The scheme will have tenure of three years (1095 days) from the date of allotment of units. Units of the scheme will be fully redeemed at the end of the maturity period, unless rolled over. NFO PERIOD:   The NFO is open from October 18 to 28. The minimum subscription during the NFO period is Rs 5,000. SCHEME OBJECTIVE:   The scheme aims to provide long-term capital growth by investing in a well-diversified portfolio of equity and equity-related securities. INVESTMENT STRATEGY:     The fund proposes to invest in stocks that are trading at a huge discount in the BSE 500 index and plans to book profit and distribute dividen...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now