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5 Biggest Money Mistakes to Avoid [& Solutions too]

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5 Biggest Money Mistakes to Avoid [& Solutions too]

Though free personal financial statement templates can be extremely useful for anyone, fewer people know how to take advantage.

To all the beginners who’re jumping into personal finances or finance management, this blog will be an eye-opener. When you’re aligned with money management, you can easily keep control of emergencies & also learn to spend wisely.

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5 Money Management Pitfalls to Avoid

  1. A lot many Payments are Lined Up

Bank loans are very luring & when your requirements are soaring high, you’re likely to get hooked. It’s good actually to have your basic needs satisfied with loans but if your monthly income equals loan payments, your survival will be a question.

What you can do is acquire loans that don’t take up all your earnings. Try to maintain 20:80 rules where you can pay 20% of your income as EMI & you have an 80% amount available to manage savings, expenses, and more.

 

  1. Quitting Job Without Plan

You don’t qualify for unemployment insurance when you quit a job without any plan. Sometimes, it’s even difficult to find the job & you may enter into a tight financial situation when you move without planning.

The only solution is to find the middle way out. For instance, if you’re not satisfied with your current job, you can look for better opportunities.

When you find them, you can join a new job & resign from the existing one. This will not make you jobless & your paycheck will still come while you’re looking for a new job.

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  1. Sticking to a Job at Risk

People often hate their job for many reasons, one of which is staying at a dead-end job. There is no point in staying somewhere where your growth is stagnant & you’re not getting a pay rise either.

You should recognize such high-risk points in your professional life. Move on when you should & find a job that boosts your confidence & encourages you to reach new milestones.

 

  1. No Financial Foresightedness

You can’t reach somewhere without knowing where you should go. This simply means that financial foresightedness is very important in our lives. It helps us to determine if you’re spending as per the priorities, whether you’re investing right or not & how much should be saved for retirement.

Life is meaningless without setting financial goals. If you don’t have a plan, start making one today.

 

  1. No Insurance Coverage

Getting insurance is a critical financial decision. You don’t just save money with this but also create a safety net. You have a monetary backup to stand strong against any financial needs.

If you don’t have an insurance plan, make sure you have at least once.

We hope this read will help you shape your finances well. You can start with a free personal financial statement template today with our document generator free.