TomorrowMakers

Getting influenced to take bad financial decisions can result in a prolonged miserable situation for you. If you believe it is happening right now, then look for these red flags and take action right away.

Four Red Flags to Avoid Poor Financial Decisions

Women’s finances have become increasingly relevant in recent years. The topic of “how to make financial decisions like a boss lady” has been the biggest buzz this season, all thanks to younger female bloggers taking centre stage on all of our feeds on International Women’s Day.

You can see several boss ladies sipping champagne on a yacht giving stock tips, opinions on new fund offerings, and many bloggers sharing advice on managing their portfolios and how you can become a millionaire by only investing Rs.10,000 a month for X number of years.

However, if this is the advice that’s making you swoon for that future lavishness, hang on to your pockets, ladies.

Maintaining personal finance is not an easy task shown these days. So what is a financial decision? We all have heard of the famous 40/30/20/10 rule. This is a common thing that all-female influencers and other bloggers will tell you. Moreover, they will also tell you how they invested their money according to a plan and eventually became rich.

However, they might not share the most important details and quite rational decisions while working on financing. And this is where the risk lies – the risk profile they’re at, the precise security baskets they have kept their money in, and for how long they maintained this.

Related: Hacks To Improve Your Financial Situation: A Guide For Women

Here are some red flags that you can avoid if you’re making a bad financial decision.

You’re under pressure

Many women are forced to make financial decisions, an acute warning indicator. Unfortunately, time and pressure play a major role in many poor decisions. If someone is pressuring you to make a financial management decision quickly — and in a way that benefits them — don’t overlook that warning flag.

Some high-pressure phrases can cause you to make a bad decision.

Money is tight

This can be a red flag If you’re worried about factoring the purchase cost into your budget.

Stop calculating or finding finance formulas before purchasing when you’ve enough money in the bank or credit on your credit card.

Any long-term financial decision that puts your daily living expenses in jeopardy or too much debt is a clear red flag.

Your feel hesitant

We frequently notice bad financial mistakes instinctively.

When it comes to financial matters, always go with your instincts. Listen to your intuition if something doesn’t feel quite right. This is especially critical if you are being pressured to make a financial decision.

‘No, this isn’t for me right now,’ don’t be afraid to say. If someone cannot respect that, they don’t deserve you as a client or customer.

Related: Women And Money

You haven’t done your homework

Assume you’re deciding on investment or applying for a credit card. Have you taken the time to read the small print? Or did you make any financial preparations? Are you sure you know what you’re doing? That might be an issue.

There are advantages and disadvantages to every financial tool, product, or decision. You must be aware of both as a woman. You are making a mistake if you can’t explain to someone else why you made the financial decision about how you benefit from it, how the instrument works, what are the good features, and most importantly, what are the bad features?

The Bottom Line

Keep in mind that you don’t need any fancy degrees or special backgrounds to become an expert at managing your finances.

If you avoid these four financial red flags in your life, then you can be as personally successful as someone with a hard-earned MBA in finance.

Related: Financial Advisor Or No Financial Advisor: How Does It Make A Difference?

Women’s finances have become increasingly relevant in recent years. The topic of “how to make financial decisions like a boss lady” has been the biggest buzz this season, all thanks to younger female bloggers taking centre stage on all of our feeds on International Women’s Day.

You can see several boss ladies sipping champagne on a yacht giving stock tips, opinions on new fund offerings, and many bloggers sharing advice on managing their portfolios and how you can become a millionaire by only investing Rs.10,000 a month for X number of years.

However, if this is the advice that’s making you swoon for that future lavishness, hang on to your pockets, ladies.

Maintaining personal finance is not an easy task shown these days. So what is a financial decision? We all have heard of the famous 40/30/20/10 rule. This is a common thing that all-female influencers and other bloggers will tell you. Moreover, they will also tell you how they invested their money according to a plan and eventually became rich.

However, they might not share the most important details and quite rational decisions while working on financing. And this is where the risk lies – the risk profile they’re at, the precise security baskets they have kept their money in, and for how long they maintained this.

Related: Hacks To Improve Your Financial Situation: A Guide For Women

Here are some red flags that you can avoid if you’re making a bad financial decision.

You’re under pressure

Many women are forced to make financial decisions, an acute warning indicator. Unfortunately, time and pressure play a major role in many poor decisions. If someone is pressuring you to make a financial management decision quickly — and in a way that benefits them — don’t overlook that warning flag.

Some high-pressure phrases can cause you to make a bad decision.

Money is tight

This can be a red flag If you’re worried about factoring the purchase cost into your budget.

Stop calculating or finding finance formulas before purchasing when you’ve enough money in the bank or credit on your credit card.

Any long-term financial decision that puts your daily living expenses in jeopardy or too much debt is a clear red flag.

Your feel hesitant

We frequently notice bad financial mistakes instinctively.

When it comes to financial matters, always go with your instincts. Listen to your intuition if something doesn’t feel quite right. This is especially critical if you are being pressured to make a financial decision.

‘No, this isn’t for me right now,’ don’t be afraid to say. If someone cannot respect that, they don’t deserve you as a client or customer.

Related: Women And Money

You haven’t done your homework

Assume you’re deciding on investment or applying for a credit card. Have you taken the time to read the small print? Or did you make any financial preparations? Are you sure you know what you’re doing? That might be an issue.

There are advantages and disadvantages to every financial tool, product, or decision. You must be aware of both as a woman. You are making a mistake if you can’t explain to someone else why you made the financial decision about how you benefit from it, how the instrument works, what are the good features, and most importantly, what are the bad features?

The Bottom Line

Keep in mind that you don’t need any fancy degrees or special backgrounds to become an expert at managing your finances.

If you avoid these four financial red flags in your life, then you can be as personally successful as someone with a hard-earned MBA in finance.

Related: Financial Advisor Or No Financial Advisor: How Does It Make A Difference?