Many individuals make financial resolutions, however, they tend to fail and correct the mistakes done in the previous year. Of course, financial resolutions will make your life smoother and help you achieve your long term and short-term goals.
Here are 7 bad habits which you can try to avoid in 2016:
1. Avoid spending on unnecessary items
Cut spending on luxury items which can only provide temporary comforts. Make less use of vehicles and more of walking which will also make your healthier.
2) Avoid exceeding budget
An individual only knows that he has exceeded the budget, when makes a budget. Stick to a budget and try to update that sheet on daily basis so that you know where you stand. Make use of App which will help you save and track your expenses.
3) Avoid late payment of bills
One of the bad habits is to make late payment of bills. The accumulation of such bills can be a big debt in case not paid on time.
4) Avoid excessive use of credit cards
The best way to reduce spending is to avoid using credit card which acts as spoiler of savings most of the time. Using cash will make you spend less and you can track your spending easily.
5) Avoid unnecessary debts
Do not accumulate any new debt, this will lower your credit score. A good credit score will help you if you have any big plans such as availing home loan.
6) Avoid last minute tax planning
Due to a delay in tax planning we tend to overlook some avenues which may impact our returns and at times dampen our financial goal.
Give yourself more time so that you can consider all products including the ones under Sec 80C which are exempt from tax.
7) Avoid being hard on savings
Well, in saving and investing do not forget to pamper yourself with little luxuries which you deserve.