Money Mistake #6

Not Saving Money for the Emergencies

Saving money for emergencies is very important because, life is unpredictable and anything can happen to you or to your family like an urgent hospitalization or an accident, for which you are responsible to incur the expenses.

If you don’t keep some amount for your emergencies then you will have to take out all the money that you have saved to fulfill your big dreams like home buying and so on.

Money Mistake #7

Not Understanding Credit Score and Credit Report

Your credit score and credit report determines whether you have handled your finances well. Infact, if you are willing to take a loan, the first thing that your lender will consider is whether you have maintained all your previous debts well along with a good credit score.

Here are few things that you must inculcate to maintain a good credit report.

1. Ensure that you pay all your credit card interest and debts on time.

2. Do not use all the money that is available on your credit. It is advisable to use just 10 to 20 percent of the total income.

3. Never fail to check your credit score and credit report atleast thrice a year.

Also Read:

Are You Opting To Lower Home Loan Rate? A Quick Guide To Follow

5 Personal Finance Myths Which Can Make You Loose Money