Business

Here's a 3-step guide to deal with money mistakes

Updated : November 28, 2018 02:19 PM IST

Not paying or forgetting to pay the bill on time, being in debt or even forgetting to take back the money given to friends or loved ones, are some of the common money mistakes.

Making mistakes while managing your money is common in life. But not paying or forgetting to pay the bill on time, being in debt or even forgetting to take back the money given to friends or loved ones, are some of the common money mistakes we usually do.

Here are the steps you should take if you have committed any of these mistakes:

Stay Calm And Seek Help

The first step is to remain calm and don't panic after committing the mistake. Many a time people are not keen or feel ashamed to ask for help with their finances as they are embarrassed about it. However, if the only way to get out of the situation is to seek help, do so. You can ask for help from your loved ones or your friends.

If there is an option of paying later on your credit card, you can opt for that. If the option is not available, you may have to pay a penalty.

Don't Forget

If you are opting for the pay later method in credit card or have to pay the penalty or borrowed money, then do not forget the mistake you had made in your finances earlier. If you have borrowed money, do not forget to repay the money to the one you borrowed from. Plus, try not to repeat the same mistake and plan your finances better, so that you can avoid these mistakes in the future.

Managing And Planning Finances

The best way to cope with money mistakes is to plan and manage your finances by making a budget. It will help if you can make a list of the necessary expenditures for the month, like paying the electricity and internet bill, among others, and set an estimated amount from your funds. When the month kicks in, stick to your budget. With the surplus funds, you can save a part of your funds as a reserve in the time of need and with the rest, you can invest in mutual funds or other investment options.

Disclosure: The CNBCTV18.com editorial team does not engage in speculative or active trading in stock markets and follows its Code of Conduct on securities trading and investment. Any investor/ viewer is advised to carry out necessary diligence on their own or through a certified registered financial advisor for investment decisions.

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Here's a 3-step guide to deal with money mistakes

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