5 personal finance mistakes to avoid in 2018

Your future financial situation will be a direct outcome of the financial decisions you take today. A poor financial decision or mistake has every chance of severely impacting your future. Here are the some of the common financial mistakes that you should ensure not to make in 2018 or thereafter:

Not fetching your credit report regularly: Most consumers do not realise the importance of checking their credit score at periodic intervals. Your credit report can contain wrong information due to the clerical errors made by your lender or by the bureau or due to fraudulent credit applications or accounts in your name. Such misinformation can reduce your credit score and thereby, your future loan eligibility. Monitoring your credit report at periodic intervals is the only way to detect such errors. Monitoring your credit score would also help you to build it over time through responsible credit behavior.

Waiting for the ‘right’ time to invest: Early earners or those with lower savings rate tend to delay their investments till they receive higher paycheck or accumulate a sizeable corpus in their bank account. However, postponing investments can lead to significant opportunity cost due to the power of compounding. With compounding, even the returns earned from your investments start generating returns, which eventually leads to a larger corpus. So, come next year, begin investing right from the onset and stay disciplined.

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