7. Too Much Debt

Generally most people have home loan debt which is considered as "good debt". However there are also people who take in loans to buy car or other luxury things. In such cases too much debt is not at all good for your financial planning. Managing your debts is very important. In the very first place one should try to avoid taking such loans, but still if you are going for one try to pay it off soon as debts always are considered to be a pull back to your financial plans and too much of debt may put you in serious trouble.

8. Failure to Maintain Sufficient Cash Reserves

Most people should keep the equal of three to six months' worth of expenses saved in accessible accounts. In case if both the members are earning, the amount may be low; the elevated amount is healthier for one wage earner families or if your income is unstable. Unless you have unusual conditions that warrant superior liquidity, keeping excess cash in low or noninterest-bearing accounts is adverse, as inflation lowers your money's purchasing power over time.

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