April 1 is celebrated worldwide as a flower day. Today, everyone jokingly tries to trick each other. Well, today we advise you not to be fooled or not, but to correct the 11 financial mistakes you are making inadvertently. With this, you will be able to strengthen your financial position and secure your future.
1. Expecting higher returns from a savings account
Since the corona crisis, banks have made loans cheaper, so interest rates on deposits have also been reduced. In such a situation, if you are expecting more than the amount deposited in a savings account, you are doing it wrong. Invest in equity or mutual funds for higher returns.
2. Take more insurance than necessary
People usually buy an insurance policy to avoid taxes. You are not involved in them anywhere. Know that there is never an investment in an insurance policy. If you are paying more than the policy premium, correct this mistake. Choose another medium for investment.
3. Waiting for big money to invest
Investing regularly is an example of financial discipline. If you are waiting to start investing with a large sum, you are doing it wrong. You can start with a small amount and deposit a good amount.
4. Use of Bill Minimum Payment
If you are one of those who are accustomed to paying minimum bills by shopping with a credit card, you are making a big mistake. Interest on outstanding interest will ruin your financial situation. To avoid this, buy as much as you can with the card.
5. The utility bill cannot be paid in a timely manner
If you are unable to pay mobile, electricity, gas, cable, bills, understand that your financial situation is not right. To fix this, stop wasting costs and pay bills on time.
6. Shopping practice at EMI
With the increasing penetration of e-commerce, the trend of getting the smaller ones available at EMI has increased rapidly. However, this is a financial trap that confuses you. At some point you will find it very difficult to get out of this trap. Correct this mistake as soon as possible.
7. Spending an emergency fund under another head
Never spend an emergency fund on another item. The corona epidemic has indicated that emergencies can occur at any time. In such a situation, put at least three to six months’ worth of cash in an emergency fund.
8. Assess the impact of inflation
Revenue fell after the corona epidemic and inflation accelerated. In such a situation, if you underestimate the impact of increased inflation, you may be embroiled in a financial crisis. So, during this crisis, make the budget of the household again.
9. Repayment of loans with higher interest
Since the corona crisis, banks have reduced interest rates on all types of loans. If you have taken out a home or car loan at an expensive rate and EMI is paying an even higher rate, you are making a big mistake. You can save a good amount by transferring the loan to the bank.
10. Avoidance Practice
The new financial year begins today. Leave the habit of foreclosure and start investing and saving, focusing on your income and tax liability with the start of the financial year. With this you will be able to get the best return on your investment and save on tax.
11. Do not read important information
Reading the terms and conditions before borrowing or buying insurance or investing in any other financial instrument can be tedious, but you should read them. Such agreements should not be signed in haste.
These 10 rules have changed since then, affecting your pocket
