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With a new financial year just around the corner, I thought I’d reflect back and list the financial mistakes that I made in the past year.
1. I let my independent health insurance lapse.
I’ve written time and again about the importance of having independent health insurance — one that’s not provided by your employer. However, I let my own health insurance policy lapse. Given the recent change in my life, this is actually an opportunity for me to reevaluate my health insurance needs.
2. I relied on my credit card more than was necessary.
It’s well known that I am not a fan of credit card usage. I do use my credit card every now and then for travel-related expenses. But I fell into their lure and used it for routine expenses too — and brought back headaches of keeping track of due dates and payments.
3. I couldn’t explore pension/retirement plans.
I simply didn’t find the time — and that’s a terrible excuse! Every year counts and I just lost one. To compound my woes, I had to pay additional income tax (and consequently have lesser take home pay in February and March) because I didn’t meet my declared investment targets.
4. I didn’t take a single step towards becoming debt-free.
Do I need to say more? I’m kicking myself and taking serious steps to be debt-free by December 31, 2010. You’ll read more about this in an upcoming post.
5. I made a few major purchases without budgeting and saving for them.
Sure, I’m using these, but they were bought on the spur of the moment resulting in a drain on my cash flow. I’d have been better off budgeting and saving for these expenses.
That’s my list. What about you? What mistakes did you make?
Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.