Do Not Repeat These 5 Money Mistakes In 2024

Before you bid farewell to 2023…

As the countdown to the new year begins, its not just a time for celebration & reflection; its also a chance to strengthen your financial health for 2024. Before you bid farewell to 2023, lets explore five common money mistakes that you should avoid to ensure a financially robust start to the new year.

Lack of an Emergency Fund

An emergency fund serves as a financial cushion during unexpected events such as job loss. Ideally, it should cover at least six times your recurring monthly mandatory expenses, including rent, utility bills, insurance premiums, & loan EMIs.

Inactivity in Investments

Instead of letting your funds idle in a low-interest savings account, consider investing in different asset classes based on your risk appetite. Whether big or small, consistent investments can grow your wealth over time, providing a valuable resource during financial emergencies like a sudden layoff.

Neglecting Life and Health Insurance

Insurance is not just an option; its a necessity for everyone, regardless of income or age. Purchasing life insurance at an early stage secures lower premiums & ensures your loved ones are financially protected in case of your unfortunate demise.

Buying Health insurance – A must

Health insurance is vital to tackle escalating medical costs. Dont solely rely on employer-provided insurance; invest in comprehensive life and health coverage for a secure future.

Ignoring Your Credit Score

Credit score plays a pivotal role in financial transactions. Ranging from 300 to 900, it reflects your creditworthiness based on past credit card and loan repayment behaviour. Lenders use this score to assess the risk of default on future repayments.

Good Credit Score

A good credit score enhances your trustworthiness, increasing the likelihood of loan approval with favourable terms. Neglecting your credit score may lead to rejection of loan applications or higher interest rates, affecting your financial stability.

Side Gigs for Passive Income

Regardless of your primary profession, theres often a hidden talent or passion that can be monetised as a side gig. Whether its content creation, online tutoring, social media influencing, turning your passion into a source of passive income can contribute to financial stability.

Take the lessons, but consult too!

As you step into 2024, take these lessons from the past and avoid these common money mistakes. Strengthening your financial habits & adopting a proactive approach can pave the way for a more secure and prosperous financial future. Cheers to a financially savvy new year!