Financial products and process are often complicated and if one taking financial decisions without right information or without understanding implications then such decisions are called as ‘Poor financial Decisions’.

Following are few poor financial decisions which one should avoid :

Taking house on loan at beginning of career:

Buying a home is dream of everyone and when one starts earning ‘Home ownership’ is the first goal. Many young employed persons take the risk of buying home on loan in hasty. Though this decision can go wrong as major chuck of income go towards monthly payments i.e. EMIs. It reduces savings drastically. In case of job loss or gap or switch, home investing does not get liquidate easily. Also, repayment can lead to stress.

Too many Credit Cards:

It’s okay to use credit card for few expanses but more use of credit cards can impact savings. Remember, credit cards gives facility to ‘Spend’ money anywhere or on anything. But at the same time use of too many credit cards can brake the good spending habit. It’s a trap which destroys saving and future.

Concentrating investment in one asset class:

Investing only in FDs or equities is one of the example of poor financial decision. Splitting and investing across different asset classes can help to diversify and reduce risk.

Over improving Home:

Its one the biggest myth that more you improve your home more value will get added to its sell value. Real estate is already a low liquid asset and it take months to sell it. The exact costs on improvements will not going to get added in sell value.Therefore, make sure savings your investment in home improvement is worth and not leaving you with big financial loss at the time of selling.

Not Making Will

We spend so much time thinking about earning money and investing it. But hardly anyone think seriously about making a will. Will is important-even if you are not rich. It’s a more about family and their future safety.

No budgeting

for many people budgeting is boring, not useful or waste of time. whatever is the excuse but making budget for every expanse is a good habit and helps to save more money. Budget is not about making long planning and hard calculations but a trick to track your expanses.

Buying things which you can not afford

People keep buying new stuffs to show off high lifestyle or to keep up with rich friends. And no wonder they keep spending money on unnecessary things to create the false image. But then adjusting expanses against income is a big struggle for these people. This can lead to financial stress. Better stop buying things which you can not afford.

Investing without considering investor profile.

Many times people invests in an option in view to get returns but neglect their own goals, risk capacity and investor profile. Most of the time they feel stuck in such investments or do not continue it for long term. Hence, suffer losses.