Money Management: Five financial mistakes that people often commit; Know how to avoid them | Personal Finance News

When it comes to personal finance management, most people think that they are experts in handling their own finances. For them, running their household with their earnings and saving some bucks towards the end is successful financial management. However, what they ignore is long-term planning as they keep living paycheck to paycheck. While there are several money mistakes that people commit during their lives, some of them are listed here and must be paid attention to:

Life and Health Insurance: It’s important to have life insurance and health coverage not only for oneself but also for the family. Also, one should not link life insurance with investment. So, it’s better to have term insurance for life coverage and a family floater plan for health insurance in case of a nuclear family. 

Not Starting Early: Though it’s never too late to start, if you don’t start investing early, you will not only miss out on major opportunities but will also lose out on the power of compounding. Also, if you start investing late, your risk-taking appetite reduces drastically.

Also Read: Personal Finance Tips: Do’s and Don’ts of money management to keep goals on track and crisis at bay

Ignoring Emergency Fund: A crisis may dawn upon anyone at anytime. However, only those come out of it who plan for it well in advance. Investing and saving for an emergency fund helps you overcome crises easily and helps you avoid the derailment of your financial planning.

Frivolous Spending: Do…