Common Financial Mistakes YOU HAVE TO AVOID
Personal finance is a vast subject and each and every person in the globe should have deal with one or more of the personal finance subjects. However the success or failure of actions related to personal finance depends on how well the person understood the specific financial knowledge. it can be investing, insurance, debt management or any, understanding to the specific area is a must to succeed with personal finance.
To get real knowledge on anything, it is a better idea to understand the mistakes from the area. Here is the article that discusses top 4 personal finance mistakes people commits frequently. At the end of reading this article you will get an exact idea on these mistakes and knowledge on how to avoid such costly mistakes. Start reading...
1. Not Reading the Terms and conditions
Customer sign at the end of an application form has significant importance. Whether it would be at the time of applying for a bank account, subscribing a credit card or making any investments, the terms and conditions mentioned in the application form must be read and understand well before signing the application.Agents may force you to sign the application form but as a customer it is your duty to understand the terms and conditions well and ask any doubts if you have on any points in it. Signing at the end of any application form assumes that you have read and understood the terms and conditions mentioned in it. Not reading and blindly signing the application form certainly land you in some issues later.
2. Not Adding the Nominees
There are crores of money in bank accounts and investment accounts that no one has to take claim. This is happening due to the death of subscriber who had opened the account without having a nominee and or have not shared the investment information with spouse or kins. Legal formalities are pathetic to claim the money in any account that the account holder had opened without a nominee.Make sure each of your dealings have been protected with clear nominee information provided and have updated the information time to time, whenever required or changes happened. Sharing the investment, account information to the nominee also should be considered as an important part to avoid risk and troubles in the future.
3. Not Reading the Statements
Bank, credit card, investment or any statements that related to money should be read thoroughly and report identified issues with the respective offices at the earliest. This would not only help you to save your money that goes unnecessarily due to any mistakes but also get higher control on all your accounts and dealings.Credit card statements are notorious in the sense of mistakes and each should be read and confirmed individually. Filing a copy of statements such as banking would help you to compare the same with any forthcoming or ad-hoc statements that may received later.
4. The Top Mistake - Never be a Guarantor to anyone, anytime, anywhere
This is the top mistake people commits in the personal finance space. Believe me, life of thousands of families have been gutted due to this error they have made. Those who are not aware of being a guarantor, here is the explanation:Through being a guarantor, you are legally agreeing to be responsible for another persons debt or loan under a contract, if the other fails to pay or perform. This means, if the loan taker is not paying the money back to the financial institution, as a guarantor you are responsible to pay the money back or may face legal actions that lead the court pluck your neck. DO NOT MAKE THIS TOP MISTAKE AT ANY COST...
Most common Finance Mistakes by People
- Lack of Budgeting: Failing to create a budget leads to overspending and financial stress.
- Ignoring Emergency Funds: Not having savings for emergencies can lead to debt during unexpected situations.
- High Credit Card Debt: Carrying a high balance on credit cards incurs hefty interest charges.
- No Retirement Planning: Neglecting retirement savings can result in financial insecurity later in life.
- Impulse Buying: Making unplanned purchases can drain savings and derail financial goals.
- Not Investing: Missing out on investment opportunities hinders wealth accumulation and financial growth.
- Ignoring Insurance Needs: Underestimating insurance coverage can leave individuals vulnerable to financial risks.
- Overlooking Debt Repayment: Delaying or ignoring debt payments can lead to accumulating interest and financial strain.
- Not Reviewing Financial Statements: Failing to review bank statements and bills may result in missed errors or fraud.
- Neglecting Financial Education: Lack of financial knowledge can lead to poor money management decisions.
Take care of these mistakes to not happen in your life and personal finance. These can be gutted your or your kins life to a great extend through the loop holes of law, directly and indirectly.
