Holi 2019: The festival of colors is here and the Modi government has indeed made our cash wallets colourful with the magenta Rs.2000 banknote, stone grey Rs.500 note, bright yellow Rs.200 note, lavender Rs.100 note, fluorescent blue Rs.50 note, orange Rs. 20 note and chocolate brown Rs.10 note. Holi is also the festival of burning our bad habits, and what could be a better day when we decide to shun habits that are bad for our financial growth. Let’s take a look at five such bad financial habits that we must torch with Holika Dahan tonight!

1. Forgetting Due Dates

Forgetting the deadlines for bill payments is the most careless financial habit that you should do away with immediately. By not paying your bills on time, you not only have to cough up more money in late fee, but you also end up jeopardizing your credit score.

2. Mounting Credit Card Dues

The second most tarnishing financial behaviour is letting your credit card dues pile up from one month to another. Remember credit card is the most expensive credit option that attracts highest rates of interest if dues are not cleared within 50 days. Also, the routine of not reviewing your credit card statement also needs to be addressed.

3. Not Setting a Budget

Journaling your daily expenses and monthly income helps you draw a definite figure for your monthly budget. The next important thing is to maintain it. Know your income and spend accordingly. Mindful spending ensures you meet your expenses with ease, while saving for the future.

4. Spending All You Earn

Buying the latest Smartphone, or a pair of branded outfit, the moment you get your paycheck is the one of the worst attitudes you can have towards your money. The first thing that you should do is transferring at least 20% of your paycheck towards your saving/investment account, and then carrying out expenses from the rest 80%.

5. No Financial Goals

Having no financial goals is like working each day without planning for your promotion. You must set financial goals at the beginning of each year, and review them in order to accomplish them. Set how much you are going to invest in an FD, RD, SIP, Life Insurance Plan, Mutual Funds, ELSS, and other investments this year. When are you going to buy your first home, first car? What plan do your have for your child’s education? Your yearly holiday? Time to delve deep…

Happy Holi!!!