Which Money Management Gaffe Do You Make?

If You are smart You would know that You are. But if You are not, still You would think that You are! This applies in money matters too.

Many of those who make money management mistakes do not know what they are up to. But they who do it smartly know that they are smart indeed.

Here are some typical stereotyped money management mistakes we make:

Women: “Why would I be involved” – A hands-off approach to finances

Bhoomi was not involved in any of the financial decisions made by her husband and kept away from money talks. Nothing including an FD account or a credit card belonged to her. Fate came as a mishap when her husband met with an accident. She found it difficult to manage the day to day expenses, loan repayments and did not know where her husband invested money.She heavily borrowed from friends and relatives and relied on unscrupulous agents who duped her off.

Men: “Money will come and go…”

The sacred text might have told this, but if you are taking it as a general attitude towards life, you are going to be a loser. Be it frequent holidaying or changing cars every alternate year, many men prefer to live without worrying about tomorrow. The realization comes only when one meets with something worse like losing job or running into a financial emergency.

The Young Folks: “Live for the day &Take things as it comes”

Ryan, a young Bangalore based IT professional, loves to splurge at pubs and dance parties every weekend. Every month, by the third week, he goes with an empty wallet and depends entirely on his credit cards. He pays minimum balance on these and was never bothered about the accumulating interest. He got a golden opportunity to do his Master’s abroad from a Premium University, but couldn’t gather the money he needed for it. His poor credit score denied him chances of taking a loan too.

The Retirees: “What & Why plan now?”

Many retirees plan poor for their twilight days and keep the attitude:“why plan now”. Many, who are over sentimental about their families, spend their handsome retirement money as investments in the name of children, grand children and helping others. They are not realizing that they are the most prone ones for financial emergencies and needs to be equipped to face it independently.

The Salaried: ‘My salary is not enough’

We hear many salaried people complaining that their salary is not enough. They not only complain and remain unsatisfied, but also think that they don’t have sufficient money to invest. But if you are afraid that you will be left with too little to start an investment plan with this, you will never reach your goals.

The Self-Employed: ‘It’s gonna be a success story’

Basil was a passionate and talented young man who left the corporate world to follow his passion. He started an Italian restaurant with a heavy capital investment. He used up all his savings, borrowed from friends and took a business loan. But the business didn’t go well as he expected, due to a series of events which he never expected, and resulted in a heavy financial wreck.

The Singles: Lot of time and no responsibilities

Most people who are single have a lot of time and money at their disposal, untouched by financial and family responsibilities. Theyare free birds, but never try to chalk out a financial goal and believe that the right time is still ahead. It comes as a mild shock to them when this changes after marriage and when they must align their financial goals and habits differently.

The Married: No time to plan for fun..

People in this category are too busy to make money but don’t have time to sit back and have fun. Many married couples hardly spend time together to plan their finances. Whether it is expenses for their short terms goals like planning a vacation, or long-term goals, a careful planning is all that they need.

So, whichever group you belong to, a good planning is essential for an efficient money management!