5 Biggest Money Mistakes That Can Make You Poor
2. Living on a single income: Sometime people just love to live in the present and they don’t think much about the uncertainties that future holds for them. You might feel that what one earns today is sufficient to live but have you thought of a situation when even that single source of earning will stop? Or what if you possibly go through a recession? To avoid such situation it is always better to add some variation in the source of income. It not only minimizes the risk but also increases the income. A person, who is into a job, can start part-time self-employment work or online business that needs less direct involvement.
3. Avoiding emergency funds: Emergencies come unexpectedly and they can occur at any time to anyone. Creating an emergency fund indirectly means providing insurance to the sudden financial setbacks. In time of emergency monetary requirement and absence of emergency fund makes a person feel helpless. It might happen that in time of emergency even your salary cheque might get late due to unavoidable reasons, at that time you can easily handle such situation by using the emergency fund. It is advisable to keep aside at least 20 percent of the annual salary as an emergency fund.
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