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Abhishek Soni.

CEO & Co-Founder of Upwards (abhishek@go-upwards.com)

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Five Bad Financial Habits To Kill This Dussehra

So, this Dussehra, let's focus on the bad financial habits we need to break.

Five Bad Financial Habits To Kill This Dussehra
Money -Growth shutterstock_113284591

Dussehra, one of the biggest festivals in India, is celebrated with great enthusiasm to epitomize the victory of good over evil. Both Ram and Ravana may be legends and myths, but it is up to us to choose who we get to be our primary identity to define our characteristics. This applies to our financial well-being as well.

Although people are progressively learning to invest over time, financial planning is sometimes tossed around or disregarded, resulting in a slew of bad decisions. So, this Dussehra, let's focus on the bad financial habits we need to break.

Having insufficient healthcare coverage

We all know that health is wealth, yet health care coverage is among the few things that people often regard as merely a safety net rather than a priority. However, the pandemic is perhaps the best example as to why robust health insurance is essential. Having had an adverse impact on people's health and wealth, the crisis made people realize the significance of health insurance coverage. So, it's crucial to choose the right health insurance policy, review the insurance plans you already have, and reinvest in newer, better possibilities to gain the advantages, mainly during medical emergencies.

Investing without a purpose

Following the adage that "one man's food is another man's poison," never invest just to imitate your friends and relatives. Though Ravana may be a myth/legend and does not exist today, he does live on in the form of our bad financial practices that can land us in sticky situations and impact our long-term financial wellness. So it's extremely important to note that your investments ought to be well-linked with your financial goals since they serve as a path for achieving your goals.

Not keeping an eye on your spending

Enticed by the lucrative deals and steep discounts, sometimes we end up committing the cardinal sin of spending more than we earn by buying goods we hadn't meant to acquire. And this leads to a cascading effect, leaving you with insufficient funds to purchase items that you genuinely require. The ongoing pandemic taught us to focus on needs rather than wants. So, just as Lord Rama embraced frugality, we must recognize the necessity of financial discipline and cultivate the ability to resist impulses. Furthermore, consider saving before spending to ensure the well-being of yourself and your family members.

Not Involving family members in financial decision making

Choosing to invest is certainly a personal decision. However, financial discussions with parents or spouses though not always pleasant, are necessary; after all, it is a matter of the family's financial future. As in your absence, they must be aware of the investments that you have made for them so they needn’t be left in dire straits and can have a financial fall-back in case of any emergency.

Following spur-of-the-moment trends 

Investors are prone to get impatient while making significant investments quickly after markets have risen sharply or withdrawing their funds from the markets during unfavorable market conditions for fear of decreased investment returns. And following these spur-of-the-moment trends is the most nefarious investing habit that leads to poor financial outcomes. As an investor, you must be patient and persistent at all times, avoiding fads and opting instead for reliable, well-proven investments with predictable returns.

Conclusion

It all commenced with Sita crossing the line drawn by Lakshman for her safety. Similarly, the aforementioned are just a few of the habits that directly affect your financial wellbeing. Hence, we must also learn to stay in line and work on our negative habits so that the Ravana within us does not gain influence and steal our livelihood. This Dussehra, let us epitomize the triumph of good over evil by overcoming our unfruitful financial habits.         

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house



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