Insurance Blog

Financial Heartbreaks

The thing about pain, is that it demands to be felt.

Although John Green was addressing the emotional dimension of pain, we cannot deny that financial pain can be equally traumatising. We’ve shortlisted three of the most common, and intense financial heartbreaks that can befall a person, and the means to get over them.

1.       One Stupid Career Mistake

One of the biggest and most common reasons of financial heartbreaks is when you do a tiny mistake that ends up taking a toll on your career.

Maybe you quit your job without thinking twice or having a proper back up, or maybe the company fired you for a very frugal mistake – either way you’ll find that not being extra careful with your professional life will not only destroy you financially but also socially.

2.       No Emergency Fund

Sometimes, savings alone, aren’t enough. Most of us know what an emergency is, but we do not know how to have an emergency fund or suitable rainy day plans. Worse still some people do have an emergency fund, but they keep dipping into your emergency fund for your car repair, a new TV, travel, and what not!

Although you might find it silly or stupid, it is a little sad that it is a very common attitude and happens with every Indian household.

3.       Failing to Plan Retirement 

Most young people today fail to plan their retirement. Studies even show that today’s working youth forget that they too will retire!

If you do not have a proper retirement policy or an investment that’s on compounding at the age of 30 or 35, you have lost the chance to harness the leveraging magic of time! Having a proper retirement plan, and starting to work on it as early as possible will only help you

Do not forget, that as you get older, your financial life will only get more complex.

Also read: Planning your Retirement

We could keep going on and on with an entire series of posts about financial heartbreak, if not for our self-imposed time limit. There are several things that cause financial heartbreaks. But what actually hurts isn’t the action, but not being aware that a particular action could wound you financially is what truly hurts.