The festival of Dussehra is about more than the celebration of good triumphing over evil. It is a reminder for us to get rid of bad habits and focus on building a better life for ourselves and our loved ones. When it comes to our finances, we have many financial demons and bad habits simply waiting to create chaos in our everyday lives. This Dussehra, let us work on vanquishing these financial demons and securing your financial future.

Top 10 Financial Demons to Vanquish This Dussehra

Forgetting to Budget

Do you often find yourself wondering where most of your salary went at the end of each month? Spending without a clear budget in mind could be the most evil financial demon we have to deal with. Without a plan, it’s easy to lose track of expenses and end up with unwanted debt. This year, prioritise tracking your income and expenses. Create a sound budget, and remember to stick to it.

Spending Before Saving

Not saving regularly is like inviting financial trouble into your home. You can prioritise saving by putting part of your income in a separate account that you do not use regularly. Since you do not see the amount in your bank, you are less likely to use it. Consider setting up automatic transfers to your savings account to ensure consistency.

Not Paying Your Bills on Time

Delaying bill payments is a recipe for unnecessary late fees and a damaged credit score. Paying your bills on time is a simple habit that can prevent financial headaches later. Vanquish the demon of procrastination this Dussehra and set reminders to clear your dues promptly.

Delaying EMI Payments

Postponing your EMI loan repayments or paying only the minimum amount can lead to longer cycles of debt. A single missed or delayed loan payment can have a long-term impact on your credit score, impacting your ability to take loans in the future. Ensure you budget for your bills and EMIs and pay them off first before spending on luxuries and wants.

Paying Only the Minimum Amount Due on Credit Cards

Repaying just the minimum amount due on your credit card each month results in heavy interest charges. This financial demon can quietly grow your debt over time. Whenever possible, pay off your entire balance to avoid interest and keep your credit score healthy.

Forgetting to Build an Emergency Fund

Life is unpredictable, and emergencies can strike at any time. Ensure you work towards building an emergency fund that could help you take care of urgent financial needs for at least three to six months. The fund acts as a safety net during difficult periods.

Having Inadequate Health Coverage

A sudden medical emergency can drain your savings and even push you into debt. A comprehensive health insurance plan can help you manage your medical bills without excess financial strain. Find a policy that offers coverage based on your unique health needs. On Dussehra, take a moment to review your plan and upgrade your coverage as required.

Not Planning for Retirement

The final demon on our list is failing to plan for retirement. Retirement may seem distant. However, when you start early, you can build a significant corpus for a comfortable future. Review your retirement plans this Dussehra and make sure you’re on track to meet your goals.

Dussehra symbolises new beginnings, making it the perfect time to reassess your financial life. By eliminating these eight financial demons, you can create a financially secure future that’s stress-free. Start small, stay consistent, and watch your financial life bloom like never before. Whenever you need a little financial support, you can count on HDB. As a trusted lender, we offer competitive interest rates and flexible repayment options, helping you meet your needs without falling prey to these demons.