Top 5 financial mistakes done by people in life

In life, we people commit a lot of mistakes. Out of those, some mistakes can cost our happiness and prosperity too. But some of those mistakes can teach a lot of valuable Lessons that a professional therapist can’t.

In this article we will learn about the top five financial mistakes that actually leave regret at the end. We will start by understanding the term financial mistakes.

What is a Financial Mistake?

A mistake is an unexpected result of one’s actions and words. If we want a desired outcome from an event but end up with a totally different outcome, it is considered a Mistake.

If these mistakes are happening in terms of Finance or Money, then they are called Financial Mistakes. 

It can neither be predicted nor totally depends on a single decision. For example, Buying a product that costs more than its normal price is a financial mistake.

Not using correct ways to save money while paying income tax is also a financial mistake. 

These mistakes are committed by people who are not educated financially. One must understand the correct difference between earning and saving so that they can actually save money in good ways.

For instance let’s say a person called A is earning around eighty thousand rupees per month. He will pay his bills, EMIs and other stuff using his salary and save just two thousand only.

On the other hand a person says B is earning around forty thousand rupees only. He doesn’t have any EMIs to pay. Every month he saves ten thousand rupees. 

Here person A is saving just two thousand and Person B is saving ten thousand rupees. The lesson that everyone should learn is that the amount a person is earning doesn’t matter if the amount saved is so less. 

With this being said let’s understand some of the biggest mistakes which are committed by people in their life and suffer financially.

Pay Full Price:

The biggest mistake of all time is to pay full price for the goods and services they buy. Whenever a person wants to buy something, he or she should check for ways to reduce the final price of it.

In this online world there are so many ways to reduce the final end price of a product. There are ways like Coupons and cashbacks. But the best way to get a product with less price is to patiently wait until the next big product arrives and our required product will be available at cheaper rates.

We can even try to bargain with the seller however most of the sellers won’t fall for these gimmicks anymore. 

Upgrading for the Sake of Upgrading!

People who want to showcase their lifestyle are the easiest prey to the fancy trends. Whenever a new phone is launched, most people feel desperate to buy it because they want to enjoy the status of having a trendy product.

This is one of the most useless traits evolved into habit in many professional persons. One must understand the need of buying a new gadget and using it for the relevant work. 

Buy Friendship

This is one of the serious problems found in teenagers mostly. However professional people also struggled a lot with this sort of toxic financial behaviour. People who don’t have a good number of friends often tend to crave attention.

Most of these introverted people often end up spending a lot of money on friends and close circle relations. This is to save themselves from social insecurity or atleast make them feel a little better in their social life.

People must understand that spending more time and money on others cannot guarantee better social relations but only a way to burn their cash reserves. 

Choose Cheaper Alternatives

There are considerable advantages and disadvantages regarding this behaviour. However the end returns after adhering this rule may not be as expected. People who are in need of finding cheaper alternative products will find a perfect duplicate.

We are living in an era where everything is duplicated exactly. One might can’t find the difference between a genuine product and a duplicate. People must try to buy a genuine product by less price instead of going for cheap alternatives

Buy Into Hype

Hyped products are the products which are heavily marketed by aggressive marketing strategies and techniques but give less returns in their own terms.

Products like teaching coding to second class students is an example of an over hyped product. There will be no relevant information or proven returns on these products but they are not at all worthy to be bought.

But sadly most people follow the trend to buy these over hyped products.

These are some of the financial mistakes committed by people in their life

Leave a Reply

Join the Community

Academics, goal-setting, interaction and most importantly, a sense of community awaits you at Studentgiri!

About Studentgiri

Studentgiri is a platform of the students, by the students and for the students, no matter where you may be. It is here you will find a community of ones like you to interact with, and so much more! Our platform offers students a variety of articles on student life, be it a throwback piece on college or updates on the educational system in the country, we are a one-stop-shop for everything you need.

Every Student has a Potential

In the world of Social media, the essence of real connectivity is somewhere lost. We help students to connect with each other and learn from each other to become successful and happy in their life.

Connect with US