Making money and investing in them may look easy, but While keeping watch on your finance, some mistakes may be looking like small but are, in fact, very big. So here I am trying to write about some of them.

  1. I think the biggest mistake is not keeping an emergency fund or using it for any other reason. An emergency fund is there for your emergency needs. Like some significant health issues, losing Job or something else. Some experts advocate making it equal to the expenditure of three months. Some say it is better to have six months. The first thing you need to make sure of is to make Emergency funds liquid, like some liquid mutual funds or Some different bank accounts that you can access at any time.
  2. Having Credit Card is a good thing. But are you having too many credit cards? The habit of buying so many things by credit card? Paying Credit card bill late? Know how your credit card company will categorize how your credit card balance consolidation is rolled over; otherwise, you might be in for one of the worst financial mistakes ever. I also want to add one more point: not disclosing your PIN to anyone. Some may tell you to share it with your spouse. My view is it is your card. You are the bearer of any expenditure and cost of it. So it is your choice.
  3. You are listening to friends or anyone clueless about Money. It is like suicide. The people surrounding you are indeed having a significant effect on your habits. If you are living with people having excessive expenditure, it is wrong for your personal finance. Others don’t know about your situation in bits and parts which you know.
  4. Expecting a Bailout From Relatives, Friends, or even Govt. a bailout may look good but not that much attractive. When you apply for a Bailout, You are accepting some terms and conditions that may restrict you and your growth. I will go even further. Waiting till the point you need a bailout is useless. Why are you waiting?
  5. You are buying Expensive Gifts to lure someone. Why? Yes, some may say that the person is essential to them. Agree. But Buying Expensive gifts when it may affect your whole month’s Budget?
  6. Trying to copy the Lifestyle of Mr. Mallya. No need to explain further. Yes, his lifestyle was lavish. But now, where is he? Is he happy, and is it possible for him to Roam around freely?
  7. You are not Giving Preference to Basic Needs. Food. Clothes. Shelter. Your basic needs. But if you ignore them and keep buying other things. Wrong.
  8. You are buying a big home, Excessive food, and Clothes that are not helpful for you. An extensive home means significant expenditure. Maintaining, repairing, etc., need money. Do you have? Yes. Home is an asset. But making such an important asset that will not make any other use is wrong.
  9. Not Understanding the difference between Need and want. Maybe I need to keep this on #1. But not an issue. This is important in any place. There are many things we Want. But not all we NEED. understanding the difference between the two will significantly change your personal finance.
  10. Going to Super Mall without any plan. During my college Hostel days. My friends and I have a hobby of going to One stationary mall near us. It was small but held so many CDs of Video games. That days teach me this. The mall people will always try to sell you many things. They will be happy if you buy more. But it is your money. So it would be best if you decided what to buy and what not to.
  11. Not Making Budget. Again. Sorry for not keeping it in the top 5. You don’t need to decide for the year at the time and be rigid about it. But at least trying it will make some critical habits. There is some expenditure which will come without giving any signal. That’s why there is an emergency fund.
  12. Investing the money you need tomorrow. Investing is for more than five years. Invest only that much money which you afford to lose, and it will not make any significant difference in your life today. 
  13. Making Excuses. I think I don’t need to explain this.
  14. Buying every updated Version of the gadgets you use. Have Iphone6? Good. Now want to update? Why? Isn’t it also a good Phone?
  15. Not planning for retirement. One of the biggest. May enter into the top 3. After three years of experience with Mutual Funds and stocks, I know that if you choose stocks right, they will help you manage money. If you don’t know about them, then go to mutual funds. Another is also right that investing excessively in stocks is wrong. There is a way to manage your money. There are some experience and knowledgeable men out there. You may take help from them.
  16. Relying on a single source of income. You may make another source of income in any way. I am not the one who advises you on this. Once again. You need to search and work.
  17. Keeping yourself underinsured. One of the most dangerous mistakes. Again. Choose wisely.
  18. Not taking inflation into account or wrong math. Not your fault. Once again, here you need professional help.
  19. Not taking professional help itself is a way to go broke. I believe there are some ways you need to take advice from some Professionals. There is some DIY that may be available. But it may not work.
  20. Assuming your broker as your financial advisor. He is not. At least in the Indian market, a broker is there only to place your orders. He doesn’t know your personal finance like any other Professional.
  21. Last but not least. It is the biggest sin for me. Accept all stock tips or your brokerage reports as final and not do your research. Throwing Annual reports, Form 10 k, or whatever it is called in your country, into the dustbin.
  22. Paying off Debt with Saving. There is an advantage with Debt WHICH IS UNDER CONTROL. In many countries, interest paid on debt is tax-free. So you can save tax and keep your saving.
  23. Not Going to College. There is a big difference in the income of the average graduate and one who is not a graduate. Many surveys indicate the same: Raghuram Rajan, Former RBI governor. Also, point out the reason behind the 2008 financial crisis.
  24. Not paying student loans Fast. The reason is that the more time you take to pay the debt, the worse it is for you. On the other hand, paying student loans fast is also wrong. You can utilize your savings and income for a better reason, like making an emergency fund. Ending up with zero debt is Good but ending up with zero savings is Very bad.
  25. Waiting for Investment. Not making due Diligence and taking a more significant risk than you might digest. Time is critical in investment. The more time you give your investment, the more it will grow.
  26. Mimicking other investors and Going with trends. The worst mistake you may make. There is no need to hit the ball every time.
  27. Investing in friends or other relatives’ family business. No need to mention anything else.

Going to end it with one tweet from Investopedia