6 Common Financial Mistakes that We Commonly Make!

6 Common Financial Mistakes:

Building money gradually and consistently is the goal of effective financial planning. Setting precise goals, saving regularly, investing those resources, and safeguarding your assets are all part of it. However, there are certain alarmingly usual financial planning errors that can prevent you from doing anything beneficial with your money.

Following are some common financial mistakes -

1. Money Lying idle in bank's saving account

This comes on top of common financial mistakes For most people, money is best saved in a savings account. The interest earned on your savings could be used to save and multiply your wealth over time.

But the rate of inflation will erode the real value of your money if you have it stashed away. So if your goal is to become wealthy, invest to beat inflation!

Is there really a difference between Saving and Investing?

The majority of us believe that saving and investing are the same. While many people use the terms equally, they are as dissimilar as chalk and cheese.

Your "savings" are the difference between your monthly income and your monthly expenses.

By "investing" your money in various asset classes such as stocks, bonds, real estate, or gold, you can grow your savings and create more wealth.

Start Investing with us Download Imperial Money App- https://play.google.com/store/apps/details?id=com.iw.imperialmoney

2. Not giving your investments time to grow

Time is crucial when it comes to investing. To optimize your earnings, you should hold investments for as long as possible. There is a quote "You invest with the expectation of fair returns over a lengthy period of time,"

Investors pulling out of an investment because they did not double their money in a set amount of time, usually days or weeks, is a common mistake Williams sees.

"You probably don't have proper savings if you need your money to increase urgently," she explains. "Quick growth is fraught with danger."

3. Ignoring inflation

When it comes to financial planning, the majority of people overlook the time value of money, or how money devalued over time.


While taking into account a rise in income over time, it's also important to factor in increased expenses and a decrease in the worth of money due to the annual overall increase in prices of popular products and services.

Over there on "safe" investments like savings accounts, bank FDs, and government bonds will result in your portfolio returning less than the rate of inflation.

If you neglect inflation, your funds may continue to erode as your financial strategy goes crazy.

4. Investing Cash You Can't Afford to Lose


Studies demonstrate that putting money into the market in large amounts rather than small amounts yields a higher total return, but this doesn't mean you should invest your whole savings account at once.

Whether you're a buy-and-hold investor or a trader, investing is a long-term business, and remaining in business necessitates keeping cash on hand for both crises and opportunities.

If you only have enough cash to invest or an emergency cash reserve, you are not in a financial position where investing makes sense. Due to behavioral biases, this type of investing leads to blunders.

5. Starting retirement planning too late in life


When you invest in financial instruments such as Mutual Funds, Stocks, RDs (Recurring Deposits), and FDs (Fixed Deposits) over a lengthy period of time, you will receive bigger returns.

You can get a better yield and financial security if you start them in your early 20s or 30s and keep them for a long time.

However, if you wait too long to invest in them, your return will be significantly lower, and you will have to wait even longer to realize the rewards of your investment.

common financial mistakes

If you want to invest 5k per month for 15 years and delay it for 6 months, so it will cause you loss of 1,75,480/-

Calculate your Cost of Delay in SIP- https://www.imperialfin.com/sip-delay-calculator/

6. Chasing News

Investing on news is a horrible move for first-time investors, whether it's trying to predict what will be the next "Apple," investing hastily in a "hot" stock tip, or going all-in on a rumor of earth-shaking profits.

Professional firms compete with investors in that they not only obtain information as soon as it becomes accessible, but also know how to correctly analyze and act on it.

Rather than believing hearsay, the best first investments are in companies you know and have dealt with personally.

These are some of the common financial mistakes you can face while starting your financial journey or in between your financial journey.

To avoid these common financial mistakes try consulting a financial advisor near you or call us on +91- 9595889988

Imperial Money Pvt. Ltd.
302, Royal Vista, Opp. Dhantoli Garden Main Gate, Dhantoli, Nagpur - 440012

Imperial Money is a dedicated company that provides personalized services for wealth creation. It is an all-around choice to go for to induce your monetary assets at ease with multiple innovative prospects that add more value to your profile. The services and ideas include innovative products, best-in-class experience, mutual funds, and equities.

This release was published on openPR.