Life without mistakes is a myth. All of us tend to make mistakes at every stage of life – from childhood to adulthood. But, with every mistake we make, we get to learn a new lesson and become wiser and more experienced. While childhood mistakes do not matter, mistakes we make in adulthood matter and sometimes lead to hamper our quality lives, especially if they are financial in nature. Let us go through some of our financial mistakes and try to learn from them.
Not Living in the Present
Often, we regret our past mistakes and worry too much about repeating them going forward. In the process, we tend to ignore the fruits of the present. In short, we do not enjoy what we have or make any meaningful life derivative from our today. For example, our worry about the financial uncertainties, or the fear of probable financial concerns in the future. It may or may not happen. Hence, we continue saving money from our limited sources of income.
Future is uncertain – we all know that. However, by restricting access to our own income in the present, through savings, is not such a smart thing to do if we do not approach it wisely and prudently. We ought to invest, not save. It is important to ask yourself how much savings and investment we should do in the present to safeguard our future income or other monetary requirements. In that sense, you must let your money grow. The only compounded growth of your income must give you the satisfaction of savings/investment in the present. It is not only our income which is uncertain, but also our future which is not in our hands. We can only do as much to safeguard our future expenses and real-time requirements.
Blaming the Past for Your Present
Learning from the past mistakes holds the key to a practical future. There is no point in ruining your present because of the mistakes you made in the past. If you have still not saved and invested money, there is no point cribbing or blaming yourself for it. A better approach is to start planning for today.
Moreover, it is better late than never. Fortunately, there are many financial instruments, including a mutual fund SIP or a life insurance policy, which you can buy for a fixed tenure at an early stage of life, say age of 18 years or so. Though there is no age limit as far as mutual fund investments are concerned, insurance companies however do set an upper age limit to buy an insurance policy. So, if you have not invested so far, there is no point delaying it further to secure a financially stable future.
Not Building Your Future
While budgeting for your family expenses, you should consider the depreciating value of money. If you are just living by the present standards of living, and not considering the money needed to secure your future, you are making a grave mistake of not having a sound and viable living in the future. There is a need to invest, and there is a need to do that smartly. By choosing to spend your time and money only on the present, is like turning a blind eye to the road of life ahead. It can be full of minor bumps and more significant uncertainties. A life insurance plan, for example, is a prudent investment to have monetary access in the future as well. You need to evolve financially for a safe and secure future.
Not planning for the Worst
The proverb, hope for the best and prepare for the worst, has a different connotation when you are planning to budget or invest in the future. It should be hope for the best and plan for the worst. One should be optimistic in life, agreed, but that should not deter you from planning for the future especially when it concerns the matters of finance. It needs more time and effort for you to prepare for the life ahead. Life is full of uncertainties and to cover up financially, you may need the assistance of an insurance policy to help you overcome any real obstacle in the needy times.
So, an insurance policy can provide you financial assistance and protection against life uncertainties like death of the bread winner (giving money equivalent to the value of your income at ‘that’ given point of time), simple savings plans, retirement plans, health plans, thus, ensuring the fact that you have money when you need it the most.