Blogs

🏡 Introduction

Money is like Wi-Fi at home — everyone depends on it, but no one knows how it actually works until it stops working.

Families often handle money emotionally: buy first, plan later. But a few common money mistakes silently nibble away at financial security. Let’s unmask them (before they empty your wallet quietly while smiling at you from the fridge door 👀💰).

🚨 1. No Family Budget — Only Gut Feeling

**Red flag:** End of month arrives… money doesn’t.
**Result:** Borrowing from friends, skipping SIPs, blaming inflation, and eating Maggi for dinner. Again.

💡 **Fix it:** Track all expenses for one month. Then build a monthly budget (even a simple Excel sheet or a budgeting app). Treat your budget like your house Wi-Fi password — everyone should know it, and no one should mess with it.

💳 2. Overusing Credit Cards & EMIs

**Common scene:** “It’s only ₹999 EMI per month!” …for 17 different things.
**Result:** Salary arrives → vanishes into 12 EMIs → repeat cycle of sadness.

💡 **Fix it:** Use cards only for planned spends. If you can’t pay full balance next month, don’t swipe. Avoid taking EMIs for depreciating items (gadgets, furniture) unless essential.

🏥 3. Ignoring Health & Life Insurance

Indians happily insure their bikes but not their lives.
Hospital bills don’t knock — they break the door and walk in like they own the place.

**Result:** Medical emergencies wipe out years of savings.
**Bonus tragedy:** No life cover = dependents depend on luck and relatives.

💡 **Fix it:** Take a term plan (10–15x your annual income) and basic health cover for the entire family. Premiums are cheaper than your weekend pizza bills.

🧒 4. Not Teaching Kids About Money

Kids think money grows inside ATMs (to be fair, they’ve only ever seen it coming out, not going in 😅).

**Result:** They enter adulthood knowing how to spend but not how to earn or save.
**Future risk:** Instant gratification > financial discipline.

💡 **Fix it:** Start early. Give pocket money with conditions. Teach them saving jars, budgeting, and basic investing. The earlier they learn compounding, the richer their future self will be (and they might even buy you a car someday 🚗).

⚰️ 5. No Will or Succession Planning

Everyone knows they’re mortal… but everyone behaves like they’re immortal.

**Result:** Property and savings stuck in legal limbo, family disputes, and WhatsApp group wars.

💡 **Fix it:** Draft a simple Will. Keep nominations updated in bank accounts, investments, and insurance policies. It’s not morbid — it’s mature.

💡 Final Thoughts

Money mistakes don’t announce themselves — they tiptoe in and make themselves at home.
But fixing them is surprisingly simple if the family is aligned. Think of your finances like a garden 🌱 — water them regularly, remove weeds (mistakes), and watch them grow.

And remember: money can’t buy happiness, but it can buy financial peace… which is 93% the same thing. 😉

📌 Disclaimer: This article is for general awareness. Please consult us for personalised guidance.

Malav C. Sheth & Co.
Chartered Accountants
🌐 www.camalavsheth.com | ✉️ malav@camalavsheth.com