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10 Ways to Completely Sabotage Your Financial Planning




1. Not using a budget or tracking spending

Creating and Tracking a budget is one of the best ways to make sure that you are spending your money wisely. Not maintaining a budget or regularly tracking your spending is like driving a car without looking at the speedometer: you don’t know when you’re going too fast or when you’re driving over the edge. That doesn’t mean that you need to track every rupee; instead, make it a habit to spend a few minutes a week reviewing your recent purchases and identifying ways to save money in the future. Write down your purchases in Excel sheet, and look for patterns. You may discover that you’re buying from MacD every day or splurging on a coffee every morning before work. That discovery will help you to identify where you are over spending and where you are underspending based on your priorities and will help you to correct this anomaly in your spending pattern that will help you in your financial well being.


2. I’m so young, there is plenty of time to save for retirement later.

Most people who don’t currently have a retirement plan or have one but feel they don’t need to worry about it now, because they have plenty of time to save for retirement later. Time is something you can never get back so why not start saving now? Put aside some money every month that you can invest in something safe, that you can afford to lose.

Retiring in your fifties or sixties may seem like old age to today’s workers, but even if you wait until you’re 65, you’ll still have decades to go before you hit a century. That’s a lot of time to make mistakes that could cost you dearly in the long run. Plan ahead, and take the time to learn about the different types of retirement investments and which work best for your situation.

3. When I get married someday I won’t have to worry about money.

Although you are probably young, it’s never too early to start thinking about planning for your future and making sure you are on the right financial track to achieve your goals. But, if you are one of those people who think, “When I get married someday I won’t have to worry about money,” or “When I get my first job I won’t have to worry about money,” you may be sabotaging your finances.

4. I’m counting on Government/Pension Plan

While many retirees have managed to make their nest egg last well into retirement, many others are still working into their golden years to earn extra money, or worrying about how to make ends meet every month. Unfortunately, many of these people are unaware of how much of their retirement may be in jeopardy if they rely on government pension plans.

The government pension plan (PF/EPF/NPS etc.) is only supposed to be a supplement to your retirement savings. They were never meant to be the only source of your retirement income. Yet, sadly, many people are happy to quit working as soon as they start collecting their government pension plan (PF/EPF/NPS etc.), and stop contributing to their retirement savings. This dangerous habit will sabotage your financial future.


5. I deserve to have fun with my money 

If you are like many people, you believe that you worked hard work, a good education, and got a good job so you deserve to have fun with their money.

Having fun with your money can mean different things to different people, so imagine a surprise when you learned that the meaning of the phrase was different from what you had imagined. You viewed enjoying your financial life as going on a nice vacation or shopping for a new car, but apparently, you needed to re-think your definition. 

But if you want to live a financially worry-free life, you have to learn to embrace responsibility and do all the things that are necessary to make your financial dreams come true.

6. A big inheritance is coming my way someday.

Having a sizeable inheritance coming your way can be a blessing, and it is a nice problem to have. But it can also be a curse, since you may not feel any need to save for retirement or otherwise plan for the future.  Thinking you’ll be able to retire wealthy because your parents left you a lot of money to inherit can make you feel complacent and even lazy. You may tell yourself that you don’t have to save because the cheque will be coming in soon. This attitude can cause people to put off saving for retirement, spend their money on luxury cars, second homes, and vacations, and run up their credit cards.

Inheritances can be a huge boon to your finances, but only if you are financially savvy enough to use the money wisely. Don’t let thinking you’ll be rich one day undermine your financial future.

7. I need to get my kids through college first and then I can focus on my retirement.

Saving for the future is important, but we all know that there are many things competing for our hard-earned cash. Between college education and marriage for the kids and the house for the family, the pressure to save can feel overwhelming. The unfortunate truth is, many of us put retirement on the back burner, convinced that we can’t afford to save.

But the best way is to fund your retirement fund first and then for children. Don’t take me wrong I am not saying that do not educate your children well but you can use education loan to finance your children higher education and if at all you pass the responsibility of repayment of the loan on  your child, he/she may be able to repay within 5-6 years so it’s better to let them shoulder 5-6 year financial burden of repayment than to shoulder 20-30 years of your retirement financial burden.

8. I’ll start Investing when the market improves.

With the recent downturn in the market, investors have been trying to figure out how to save more money. One of the most common ideas is to invest more money when the market is up and less money when it is down. While this may seem like a good idea in the short-term, this philosophy can actually hurt you in the long term. 

It is hard to start investing when the market is doing poorly, but it is even more important to start investing when the market is doing poorly. Although it may seem like a good time to buy, the real value of an investment is not realized until you sell it. By not investing during a down market, you miss the opportunity to buy stocks /Mutualfunds on sale.


9. I plan to keep working even during retirement.

I’m sure you’ve heard the saying: “Work to live, don’t live to work.” It’s a good phrase, but it’s not realistic for most people. Everyone needs an income, whether that’s from a job, a side hustle, or Pension. As you approach retirement, you’re probably a bit nervous about your future since that steady Salary is all you’re used to. You’ll need a plan for making sure your bills get paid and food on the table. 

Besides, there could be a situation where due to some health issue you may not be able to work during your retirement and if you have not planned for your retirement income, you may struggle financially at that age. Should you prefer to do same by choice?

10: Trying too hard to keep up with neighbors and friends

If you live in an affluent neighbourhood, chances are you are surrounded by people with fancy cars, big houses, and the latest branded clothes. Although it may seem that these people have it all, they may be in dire financial shape. How can this be? It’s because they are trying too hard to keep up with their neighbours by spending money they don’t have, and they are paying the price for it.

If you’re not careful, all the fun and excitement your friends are having with their luxury cars, big houses, and fancy vacations can make it hard to keep track of your spending habits. But social comparisons can be dangerous for your financial future. One study found that people who made social comparisons to those in higher-income brackets saw their financial well-being decline over time, while those who compared themselves to those with lower incomes became more optimistic.

If you need help to save yourself from above self sabotising habit’s, please feel free to book 1-hour free consultancy appointment with me by clicking here.




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