4. Investing without a second thought

This is one of the most common mistakes that almost everyone makes. Putting your money in investment you don’t understand or buying those get-rich-quick packages will put you on the fast track toward getting poor. The best way to avoid all of that is to invest in things you understand and by regularly adding to and diversifying your holdings.

Don’t waste your money on online courses and packages that promise to teach you how to earn six figures online. Do the thorough researches before you spend money. Investing in mutual funds is a great way to start.

5. Not saving for the unexpected

When we say unexpected that directly means emergencies. They come unexpectedly and can occur to anyone at any time. Creating an emergency fund is a must to do as it indirectly means providing insurance to the sudden financial setbacks. It happens that at time of emergencies and during the absence of emergency fund one may 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.