Planning your financial future probably isn’t the most exciting task that you will do in your life. While you are busy enjoying your early phase of life you should also chalk out a suitable investment plan for yourself so that you do not face any problems in the near future. You need to be very careful while spending your hard-earned money by keeping track on your investment.
This is important because if you make a mistake financially you might end up losing most of the savings that might trouble you when you’re in dire need of finance. However, most of us are not aware that how much money do we have and how much we spend to meet our personal and financial needs.
It might happen that despite our best financial planning efforts, we are somehow not able to make it leading ourselves into trouble. Here are some of the financial mistakes that may cost you in the long run if not planned well in your 30s that you are likely going to regret later on:
1. Not keeping a track of the funds you have
If you are not aware of where you are spending your money, there is no way you can prioritize your spending. For this purpose, you need to keep a track on your investment and plan your savings goals or figure out a budget.
If you will have a track of where you are spending your hard earned money every single time, you may be shocked to learn where your money goes and how much you are left with.
2. Waiting to invest your fund
You are advised not to wait for too long to put your money in any financial scheme in order to build wealth. Make the most of tax-deferred retirement accounts as well as employer-sponsored plans to avail the benefits.
However, if you are not sure about making your investments, you should talk to a financial expert who can suggest you regarding where you should invest your money by walking you through the basics of risk and how you can put the right mix of risk and yield to fit your goals and investment style.
3. Relying too much on your credit cards to manage daily life expenses
This is one of the biggest financial mistakes committed by younger people in their early 30s. Peoples make use of their credit cards irresponsibly to manage their daily lifestyle which might make trouble for you if you are not able to pay back your monthly credit card bills on time.
As a consequence, this mistake would seriously hamper your credit score which may lead financial institutions to reject your loan applications at the time of need.
4. Not Buying A Term Plan
Many people choose to go without a term plan even they have dependents. Please note that your term insurance is a safety net towards your better future incase of any critical illness or Misshappeing. They are meant to protect you from a bad time and to make sure that you have the things when you need them the most.
You need to make sure that you must have term insurance coverage with you to support your family from problems in the future.
5. Early Withdrawal from EPF Account
EPF is considered a great financial tool for retirement. Therefore, one should not think of making any withdrawal from a PPF account before retirement as it acts like a corpus of savings and will help you when you require funds after your retirement.