New Delhi, December 22: I completed my formal education this year. Fortunately, I took up a full time job, just after. Now, from a vantage point, when I look back to see my financial trajectory how has been so far, the answer saddens me. Because this year some of my financial mistakes made my life little troublesome. Now, as we are all set to enter in 2020 let me quickly rewind the year and financial mistakes you may have made
1. Debt Trap
It is a kernel truth that one phenomenon that is quite prevalent among millennial and youngsters is that they all are falling under debt trap. The moment my first salary got credited, I got for myself three credit cards. But as the time passed on, I maxed out all cards and fallen in the trap of debt. As a byproduct of this I had to bear the brunt of that in the next following months, in which I cleaned the mess that I have created for myself. And thus this biggest mistake of mine forced me to cut down on lot of other things. So use your credit card cautiously keeping in mind your budget and other financial obligation.
2. Saving
Ever since I took up the full time job, my aforementioned mistake spoiled lot of my financial plans. And for a very long time, I had been stalling a plan to invest my money in some portfolios. In one month, I postponed this to next month and from next month to subsequent months, but that plan of investment never materialised. And some unwanted expenses and improper money management led to this situation. So never stall plan to invest your money do it right away.
3. Budgeting
In the first few months of my job, I did not draw a financial plan and also did not do budgeting that plays a very important role in your financially sound and stable health. I thought saving money and managing money is a cakewalk, but on the flip side it was completely a wrong fact. I spent relentlessly. So, no budgeting and no financial plan made a financial mess for me. Always make budget and have a plan to invest, save and spend.
4. Cutting Expenses
One important thing in the youngster’s life who are fresh out of college is that they are allured towards many unwanted things. And inadvertently they end up spending so much on them. I succumbed to the same thing, frequently dining out, frequently outstation trip wreaked havoc in my financial journey. If I would have cut down a little bit I would have saved a huge amount of money this year and also would have saved myself from falling in this financial mess. So always think before spending and avoid spending on unwanted things, that will lead to a stable financial health.
So these are the mistake I committed in 2019 but would try my best to avoid again. You should also make a resolution that you will also not fall prey to this things.