What are common financial planning mistakes made by young professionals?
When it comes to financial planning, success lies in detail, even the small ones, from "the salary credited in your account" day to "last few days of that month". And if you are young professional staring at your bank account wondering why your salary looked so much better on paper.
Becoming familiar with the major to minor details around you what you own and what you owe, and what opportunities you get to make a-lot significant changes, can be the huge foundation steps in making financial decisions. and no, it is not about skipping your favorite stuffs, and controlling your food craving.
Let's be honest, You were never really taught, how to handle money. And this is not a thing, which you can get on YouTube tutorial, But don't worry, this is what joblaga.com here for you, to provide you the information, you don't get usually on internet, cause we work as your coach, and not as a website sort of.
Let's get to the point... and find out what mistakes young professionals makes with money, and how you can do it differently.
Mistake 1: Only Budgeting In Your Head
Most of them, even us, thinks that we are budgeting because we what's or how much came in and how much i have spent in last this & that much days, in short we think, roughly we have the idea on your debit and credits. but guys, that's not budgeting at all!
Let's have glimpse from the payday, you get the salary, treated yourself, rent goes, groceries bought, out of the blue you got a news of a friend's destination wedding and by the 20-25th, you ran from your budget.
So what you need to do is, Start tracking where your money is going for 30 days, that's it. once you get the idea, where it's leaking from, you will know where to patch it.
Mistake 2: Thinking I will save, Whatever's Left
This Feels like a smart move, but it's not! You think, first i will handle the bills, then enjoy life and save if there's anything left over. But this is the root of the problem, cause there's never anything left over.
Maintaining lifestyle now-a-days is such a pain in the neck. the more you earn, the more your brain finds new ways to spend. let's fix it with some planning, Pay yourself first, even if it's 2000rs. or 5000rs. a month, put it away, open another saving account and transfer your pay in that account, and forget about that completely.
Mistake 3: Avoid Investing Cause It Looks Too Risky
Investment looks like, that's not my cup of tea, right? cause it feels like a grown-up version of gambling if you are new to it, of-course. so a-lot young professionals think, hey, i will invest when i start earning more, I will wait until i start understanding everything, can't risk my money after all and this way they risk their savings.
The resolution is, you need not to become a financial expert for savings, even start sparing a little amount in the corner in the form of SIPs or RDs. Starting early trumps starting big.
Mistake 4: No Emergency Fund
Let's have a scenario, suppose tomorrow if your phone dies or you lose your job, how long you are going to survive without panicking? Answer yourself honestly.
and if your answer involves, i will ask for money from your parents or siblings, Then it's the right time to build a safety wall for these uncertainties. Let's change it with a starting of emergency fund with 2-5 months worth of expenses. Which at-least gonna help you in your tough times.
Mistake 5: Thinking Short Term Only
We get it, when you are young, you don't think about tomorrows, it's like, "Do it now, cause Zindagi na milegi dobara", so enjoying hardly, but here is the uncomfortable truth, If you will only think about short terms, money will keep a control on your mind, This way you are only chasing, instead of choosing.
so change the game, Start planning about buying a house at the age of 35, control while spending and not let this world's trend control you!
If you like reading us, you can visit at joblaga.com to learn more stuffs which gonna encourage you to build something different in your life.