5 Financial Mistakes to Avoid According to Bookkeeper and Founder of FinAccurate, Jayanthi Ganapathy
Making sound financial decisions is something this generation struggles with. Spending habits and inflation leave no room for disposable income and savings. When income consumption exceeds savings, it creates problems for people who live paycheck to paycheck their whole lives. Jayanthi Ganapathy, CEO and founder of FinAccurate LLC, is an expert bookkeeper and accountant with many tips and tricks for this generation to avoid financial mistakes.
Being excellent at mathematics and earning a degree in Accounts from the University of Madras, Jayanthi is well-versed in topics concerning finance and management. She has a dedicated Instagram account where she helps her followers make sound financial decisions. She even gives ideas and motivation for her followers to attain financial freedom and create generational wealth. Jayanthi posts about tax-saving strategies, financial stability, and mastering money for her growing followers.
According to her, here are the five financial mistakes people should avoid.
Not having an emergency fund.
It is a common saying, “save up for a rainy day,” which means having some funds on hand in an emergency is crucial. Making this a priority will help people during times of financial instability or other turbulence.
People today live in unprecedented times where pandemics and economic crises can come out of the blue to disrupt normal life flows. In such cases, not having an emergency fund could be disastrous.
Not paying off high-interest debt.
It is a famous saying among financiers that “not all debt is bad debt,”. Regardless of that notion, paying debt must be a priority. People sometimes forget to pay their credit card bills, which can quickly pile into colossal debt.
Keeping the credit card bill going is not advisable because it can hurt future financial planning and lower the credit score. This poor forbearance can result in risking future funding in business or homeownership that one might want to indulge in.
Not contributing to retirement savings.
Thinking of the future and preparing for retirement are essential once a person starts earning. Starting young will help the person set up a retirement account and help themselves in the future by saving up enough money to retire on time or even early. Many ways to plan retirement include employers and tax benefits, which allow maximum retirement savings.
Ignoring insurance coverage.
Insurance allows people financial freedom by creating more disposable income for consumption. Whether it is one’s car, house, or life, it is essential to insure it for financial safety.
Insurance will save money and ensure financial stability in times of need. Adequate insurance coverage for life, health, and disability will help people protect themselves and their loved ones in case of an unexpected event.
Not creating a budget.
Creating a budget where every penny is assigned and accounted for is essential to making correct financial decisions. This strategy will help the person calculate and adequately account for consumption, savings,, and disposable income every month.
Budgeting also eases making investment decisions for the future, which will help build generational wealth.
To learn more financial tips and tricks, visit Jayanthi’s Instagram account.