Dussehra Special: 10 Money Habits To Conquer Before They Derail Your Finances

Dussehra marks the triumph of good over evil. In personal finance, the habits that weaken our finances often look harmless at first: a missed bill, an impulse purchase, or an investment made on someone else’s say-so.

Here are 10 money demons worth tackling.

1. Paying Only The Minimum On Your Credit Card

This keeps the account current, but interest can build up on the unpaid balance. Pay the full amount due whenever possible; if that is not manageable, stop adding new purchases and make a repayment plan. The Reserve Bank of India (RBI) rules require card issuers to explain how interest and charges apply to unpaid balances.

2. Treating Every Sale As A Saving

A discount is no bargain if you did not need the item. Add non-essential purchases to a list and wait a day before buying.

3. Saving Only What Is Left At Month-End

Set an automatic transfer to savings after payday. Then plan expenses around what is left.

4. Investing On Tips

A friend’s message or a social media post is not a financial plan. Check the investment, understand its risks, and avoid acting under pressure. The Securities and Exchange Board of India (Sebi) cautions investors against relying on hot tips and unsolicited offers.

5. Chasing Quick Returns

A claim that an investment will double your money quickly should make you pause. Find out how it earns returns, what you could lose, and whether the risk suits you before putting money in.

6. Keeping No Emergency Fund

A hospital bill or sudden job loss can arrive when you least expect it. Move a small amount into a separate savings account each month. Over time, that cushion may help you avoid borrowing at high interest.

7. Ignoring Insurance Until A Crisis

Review health and life cover while you are well and able to compare options. Check exclusions, waiting periods, limits, and who depends on your income.

8. Letting Subscriptions Run On

Small monthly charges can add up. Check your bank and card statements each month. If you spot a subscription you haven’t used, cancel it.

9. Delaying Loan Repayments

Missed instalments can mean charges and damage to your credit history. Set reminders or auto-pay, while keeping enough money in the account.

10. Avoiding A Money Review

If you do not know what comes in, goes out, or is owed, it is difficult to make changes. Spend 20 minutes each month checking balances, bills, and savings goals

FAQs

1. What should I do if I can pay only the minimum on my credit card?
Pay at least the minimum to avoid a missed payment, but stop adding new expenses and repay as much of the outstanding balance as you can. Interest may continue to build on what remains unpaid.

2. How can I avoid buying things just because they are on sale?
Pause before purchasing and ask whether you would have bought the item at its regular price. Waiting a day can help separate a genuine need from an impulse.

3. How much should I keep in an emergency fund?
Start by setting aside a small amount regularly in an accessible account. Build it gradually to cover essential expenses during a job loss, medical bill or other unexpected cost.