Hello Readers!

Making choices with money is tricky and can be challenging sometimes, being wise with money can save you a lot and keep you away from unnecessary debts. Most people work extremely hard to earn their money and provide for themselves as well as their families a good life. Yet when it comes to managing that money and putting it to good use, many of us fumble around in the dark without a flashlight and end up with little or no money.

Point is, no one’s planning of expense is perfect, sometimes because of emotions, sometimes because of fear, sometimes because of sudden emergencies, people do lose their money, and their expense goes beyond their earning. Ultimately, people’s debt gets high than their expense. It may be possible that you must have also committed some financial mistakes in the year 2019, but learning from mistakes, and improving them, is a sign of a wise person.

Every year people take new vows and set new targets to achieve. This year, I would suggest you take some financial vows, and set a target to improve your financial mistakes made in 2019.

Well here I am discussing some possible financial mistakes done by you in the year 2019, and the measures, how to improve them in the year 2020.  

1. Getting Behind your Payments: This is one of the common mistakes, that usually people commit, and the biggest reason behind this is, lack of financial planning. People often skip payments like school fees, coaching fees, electricity bill and spend the money on something else. Always remember, when you skip the one-time payment, you only increase the debt on yourself, as you only have to pay these payments. Basically, the first thing you need to do is catch up on your skipped payments and then address any spending. Next time, prepare a financial chart, including all your monthly expenses, and clear all your payments on time. If you have expenses more than your budget, use your savings for these expenses, and try to increase your earnings.
2. Lack of a Financial Budget, Prepare It: When you don’t have your monthly financial budget, you lose control of your finances too. Preparing a shopping list before going to the market, helps you to save your extra expenditure on unnecessary things, similarly your financial budget, helps you to be disciplined with your expenses, also it helps to save you money, that you can plan wisely for your future goals, by investing them in Mutual funds.
3. Use Credit Cards, But Wisely: People often use credit cards, to pay their bills, to complete their extra expenses, they think using credit cards, makes you smart, but friend, while swiping your card, get one thing stuck to your mind, you have to pay this amount back, on due date, if you fail then you will be charged an interest on your credit. It's not bad to use credit cards, but at the same time, it is important that you should use your credit cards wisely, use them when it is required, don’t make it your habit.
4. Set Up a Financial Plan and Reach Your Financial Goals: Planning makes everything perfect, but lack of a plan, makes the situation unmanageable for you. When you organize a small party in your house, you plan for it, then dear, it is your future goal, your dream, and it does require perfect financial planning. Your financial plan will help you decide when you should start investing your money, how much to save for retirement and other financial goals. The first thing you need to do, sit calm, think about your future goal, it can be your retirement plan, child education plan, to own a big house and many more, once you identify your goal, prepare a financial plan for your goal, and start your investment in the year 2020.
5. Set Your Financial Goal, it will Motivate You to Earn Big: When a student set his goal, to crack NEET exam, he plans his study and put his effort accordingly, similarly when you set a financial goal, you eagers to earn for that, and also try hard to increase your earnings. These goals should be things like home ownership, starting your own business, retirement. If you do not set specific goals, you will flounder. So dear, take out some time, set solid financial goals and review them each year.
6. Never Make Financial Choices, Out of Fear or Pressure: This is also one of the common mistakes that we do. Sometimes you make financial choices, that you shouldn’t be, just because you are afraid, or you feel a lot of pressure to act right away. When you are afraid, you may not be considering all of the options, and you may end up making a mistake. It is important to take a step back and consider all of your options, best is, talk to your trusted friend or any experienced relative. It is always advised to be ready to face every situation when you take any financial decision. These decisions may include, buying a car, a house, taking a loan, and many more. It is okay to make each financial decision based on your own timing, goals, and needs.

As of now, you are aware of the possible common mistakes that you may have done in the year 2019, well it's not too late to improve, identify your mistakes today, analyze them, and prepare yourself accordingly so that you can avoid these mistakes in the year 2020.

One of the important things, if you have not started your investment in Mutual funds till, then I personally suggest you, plan for your financial goal, start your investment in mutual funds in the year 2020, and secure your financial goal. Start it early, till it becomes too late.

Most importantly, always consult a financial planner or advisor, before starting your investments. They will help you select the best fund, for your investments as per your requirement.

You can also contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.

Happy Investing!

(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).