“Baap Bada Na Bhaiya, Sabse Bada Rupaiya“ is a popular old Hindi phrase that remains relevant even now and will be forever. We are not saying, don’t respect your dear ones. But make sure your hard-earned money does not go down as waste. Ensuring the same will help you prevent the feeling of repentance that comes when you don’t get financial support when it matters the most. So, we have listed out three mistakes you should never commit with your money.
Here are Those 3 Financial Mistakes
Never Take a Loan to Trade in Equities
Stock markets are crazy, taking your invested money to heights you may not think of. But the money can crash to GROUND ZERO in no time too. That’s been the feature of stock markets all over the world. As a matter of fact, the Russia-Ukraine war and the Israel-Hamas war made stocks fall rapidly.
However, one should invest in stocks intelligently to build a strong portfolio regardless of adverse events. That being said, investing in stocks through a loan is never a good idea! All good when stocks rise. The equation changes when the stock value drops. It will make your loan payment very taxing. The interest rates for the loan will likely be in the range of 10-20% per annum. If you want to invest in stocks, do it through your savings and not by a loan.
Don’t Buy Too Much on Credit Cards
Credit cards are a wonderful thing to have when used intelligently. The ability to buy what you want and the numerous rewards and cashback on offer make credit cards truly lovable. But once you start doing reckless spending, it will cause you sleepless nights with tall credit card bills. You could pay the minimum due amount, usually remaining at 5% of the outstanding credit card balance in a billing cycle, to be relieved from paying one big amount. But the outstanding will remain and keep revolving at an astonishing rate of 30-45% per annum. Understand your limit and check your needs before buying through credit cards.
Don’t Just Apply for a Loan, Choose the Best One Too!
Every day, banks across India receive thousands of loan applications. It just goes to show that people’s needs are emerging, making them apply for loans. But don’t just apply for a loan. Apply for a smart loan that not only helps meet your needs but also keeps you financially good. Taking a loan at a higher interest rate will only lighten your wallet. Shop for loans online and choose the best alternative.
Conclusion
Staying on top of your finances is critical to surviving the potential low phase peacefully. Stay away from unnecessary expenses and prepare a solid foundation for a strong financial future. Avoid financial mistakes and build on your savings to continue reaping rewards.
