Five Financial Mistakes That I Made In the Past Year

by Vinaya HS on March 29, 2010

in Finance

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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?

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{ 4 comments… read them below or add one }

Anbusivam March 29, 2010 at 12:02 PM

Hi Vinaya,

Could you please elaborate on your third point “pension/retirement plans” in details. I am trying to plan the same and would appreciate if you could point me to the right resources to decide on the same.


Vinaya HS March 30, 2010 at 7:35 AM


I haven’t yet started exploring these plans. I plan to do that very shortly — in the first half of April. I’ll share my findings with you.

Anoop March 31, 2010 at 8:51 PM

I am not a victim myself off all those 5 common blunders most of them commit.
a) I don’t live on credit facility because im too lazy to clear them out every month.\
b) Im completely debt free..
c) I always do purchasing based on my budget and rarely purchase something over my budget..
d) Investing more in bonds and other stuff..
On the contrary.
a) I dont have an independent insurance plan
b) I dont have pension/retirement plans in place.

Does that mean Im financially prudent? I guess not…opinion?

Vinaya HS May 26, 2010 at 11:07 AM

Hi Anbusivam,

Took a long time in getting around to this. I looked at pension/retirement plans on offer and summarized my observations in this post:

Hope this helps.


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