Common Money Mistakes We Make

By First Posted: Nov 8, 2007 Thu 10:30 AM Updated: Dec 7, 2007 Fri 12:26 AM

Women generally are a smart lot. But due to our upbringing, our social education and our emotional dependence, we often make some mistakes. Today we are talking about the Financial Mistakes that women tend to make. Even though women have made ample progress in all walks of life, we are still not financially secure.

Earning fat paychecks every month does not amount to financial security. Due to our emotional dependence on our families and spouses, we often make some mistakes that can prove to be costly for the whole family. Here are the top 4 mistakes women make:

Presuming That Your Current Financial Status Will Continue For Life

This essentially means that women tend to ignore the possibility that something could go wrong with their finances. Even though you believe that you will spend the rest of your life with your spouse and children, you cannot really count on it. God forbid, if something happens to your spouse, will you be able to take charge? If your spouse, you yourself or your kids meet with an accident, are you prepared for the financial drain? Permanent handicap is also a possibility.

The point is that it is wrong to assume that you will always have enough money to cover all expenses and risks. So you absolutely need to prepare in advance for planned and unplanned expenses. Covering your back is important.

Not Bothering To Budget

As a result of the first mistake listed above, we often tend to overlook the necessity of budgeting. Unless you know what are you going to spend on, and where will the money come from, how can you start planning your financial future? In four words, Budgeting is a must. It helps you plan your expenses, delay the ones that you cannot afford (and are not too immediate) and watch out for impulsive shopping. Budgeting helps you in saving and that is where your financial security stems from.

Delaying Cultivating The Habit Of Saving

We often feel that we do not need to save yet. The right time has not arrived, either we are too young, or we have too many responsibilities and expenses. But the fact of the matter is that saving is a habit that should be inculcated as soon as one starts working. This holds true for both men and women. So if theres any right time to start saving, its NOW!!!

Refusing To Take Interest In Finances And Investment

Indian men have traditionally been the bread winners of the family, and have therefore been responsible for all the financial decisions of the family. But today women are also bringing home the dough just like men. So its unfortunate that the financial decisions of the family are still largely made by men. And its not our men who are at fault here. We ourselves take no interest in the family finances or saving and investment strategies. Most women find financial talk boring. Its high time women learn to take charge of their own investments and also share the responsibilities of handling family finances.

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