Pulse.ng logo
Go

Personal Finance 5 financial planning mistakes everyone should avoid

Your personal finance is important to achieving your goals. That is why you should avoid these five mistakes.

  • Published:
5 ways to avoid financial anxiety play

Possible signs you don't earn enough cash

(Hellonaija)

If financial planning sounds familiar, it's because you've heard or read about it somewhere, but you're probably not applying it in your personal finance.

Financial planning is the process that helps you to find the shortest route from where you are to where you are going to financially.

However, there are some common mistakes you'll have to avoid during your journey to financial freedom.

1. Saying YES to everything

10 tips on how to have a better relationship with money play

Savings helps you in more ways than one. Just save.

(Standard Bank)
 

If you are a family man or woman, you'll always be obliged to respond to your family demands due to emotional connect with your family members

But, this can lead to a drain in your finances if you always say YES to both necessary and unnecessary financial demands. It is important you keep the family goals in mind and avoid unnecessary spending.

2. Acquiring high/bad debt

5 financial decisions you could regret forever play

Preventing yourself from overspending is one way to to stop worrying about your finances

(Pinterest)
 

You can take loans to meet certain financial goals. It isn't a bad idea at all, but how you manage the loan payment matters a lot.

Personal loan, home loan and car loan should be kept to a minimum. Don't take loans that will break your back financially and sap your strength in meeting others important goals. When you're applying for loans, also apply moderation.

ALSO READ: Top 7 financial priorities everyone should have

3. Skipping saving while you're paying off debt

If you do these 3 things, you have a serious spending problem play

Spending problem can seriously affect your personal finance.

(Moneycrashers)
 

You can't afford to ignore the loan you get to get something done. It is a debt for you. The moral and legal obligation to settle is debt is on you. However, when you're paying your debt, try your best to save no matter how small. Set aside some money as an emergency fund, as this can help you reduce the temptation of getting more loans when an emergency happens.

4. Delaying when you start to save

 

Saving and investing early help to avoid financial stress at old age and if you don't that, it is important you start saving as soon as you get your first job. Never delay saving because delay they say is dangerous.

5. Not having a plan

5 things you are probably wasting your money on play

Don't make financial choices you might regret

(Pulse)
 

No one talks about actualising financial goals when there is no financial plan. You just have to plan to meet the goals.

Ask yourself where you want to be in the next five or ten years. Do you want to own a home? Have a car and be debt-free? It is possible to achieve all that. Having these in mind and working to achieve it is the beginning of your financial plans.

Do you ever witness news or have a story that should be featured on Pulse Nigeria?
Submit your stories, pictures and videos to us now via WhatsApp: +2349055172167, Social Media @pulsenigeria247: #PulseEyewitness & DM or Email: eyewitness@pulse.ng. More information here.