1. Generally, it is seen that you make monthly budget plan, as it is difficult to predict any expense, which will come at a long distant timeframe from today. However, by making annual budget, you ensure that there will be very little overestimation in comparison to what we can come across while making month-to-month budget.
2. It is believed that we spend a chunk of our income on housing. Finance experts believe that paying one-third for your housing is fine. However, this logic does not hold good, if you already have other form of debts as well as unavoidable household expenses. It is better that you should keep a check on your housing expense and ensure it is as per the ratio of your income as well as other expenses.
3. You keep money in your savings account and do not utilize in other form of investments. Yes, you might not lose out on your money. However, after a given timeline, the money will be worth less than what it is actually, which will technically become a loss for you. Rather than keeping money into your savings account, you should make a solid strategy and move into the financial market for making smart investments.
4. There are a lot of pety things happening in our day-to-day lives, which seem insignificant, but they have an impact on our finances. Going grocery shopping unplanned, taking cabs instead of public transit, having lavish weekend parties and eating outside regularly, can lead to a considerable impact on your savings. Having a smart approach to these small expenses can go a long way in building a strong saving for you.
5. Whether it is present in any form, it is not a smart move to invest in the most recent technological devices. These devices are more expensive at the time of release. However, they reduce its worth within a short span of time. What you should also remember that if you are running after latest technologies, you will be losing out of your hard-earned money at a rapid pace, as they occur after very small interval.
6. You should not trust others blindly when it comes to financial decisions of your life, as more often than not, you will be ending up on the losing side. You should always follow the proof and not individual words before making a financial decision in your life.
7. Going after comfort all the times is one of the money mistakes, which many of us succumb too. Yes, we earn money to attain comfort in life, but you can easily put a check on some of them and have a healthier financial position.
8. Credit cards offer rewards almost all the time and to achieve them, we keep on spending. The main reason behind these rewards is to make you invest more than what you would have done otherwise. More often than not, you will see that you are falling for the strategy of credit card players and you will lose out on your hard-earned money in a matter of minutes.
9. Always remember that the price on display at store or online has a scope of bargain, if you are ready to stretch for an extra mile. However, to avoid embarassment and save time, we do not opt for bargaining and end up paying more than what we should.