scorecardresearch3 financial mistakes you should avoid in 2023

3 financial mistakes you should avoid in 2023

Updated: 01 Jan 2023, 10:24 AM IST
TL;DR.
As a drastic year comes to an end, your problems stand the same. In this article, we will discuss the mistakes you made in 2022, which can be avoided in 2023.
FILE PHOTO: An employee counts Indian rupee currency notes inside a private money exchange office in New Delhi July 5, 2013.  REUTERS/Adnan Abidi

FILE PHOTO: An employee counts Indian rupee currency notes inside a private money exchange office in New Delhi July 5, 2013. REUTERS/Adnan Abidi

2022 comes to an end, in which you have to face more than what you deserved, financially. You lost your jobs, lost your capital due to various lows in the stocks, and whatnot. Some mishaps occurred due to various reasons which are uncontrollable by you, but there are a few things that could have been avoided to protect yourselves from enduring.

Let’s have a look at the major financial mistakes you made in 2022 that must have been avoided in 2023.

Passive income source

You must be so busy earning income by participating actively in the process that you must have forgotten that you cannot always work for money, you can make money for yourself as well. Active income is the income which is earned by working at least 7-8 hours a day.

On the other hand, passive income is the income in which you have to actively participate in the process for one time, and then in a particular interval only. Like investments, you do not have to do regular work to earn a return on your investment.

I must have helped you in the case when you do not have your regular job. By generating passive sources of income, you do not have to worry about bread and butter, you can earn your basic needs from your passive income only if generated properly.

Not reducing your personal inflation

When you knew that economic conditions were worsening, you did not attempt to reduce your personal inflation. Personal inflation means the inflation of the lifestyle you opt to live. Not reducing your wants and keeping spending your money on wants even if the prices are increasing drastically, is one of the major mistakes you have made in the year 2022.

When you reduce your personal inflation, you reduce your expenses which will help you in saving more for the time of uncertainty. When economic conditions are not good, the situation of unemployment rises due to massive layoffs. You must have the concept in your mind before spending your money.

Not upskilling

At the time of unemployment, companies become picky when it comes to selecting employees. If you keep yourselves updated and upskilled, your company will think 100 times before removing you. But, if you are doing monotonous work without any major contribution, there are high chances of your loss of job.

However, these reasons do not justify what is happening in the market, you do not have to take the blame on yourselves fully. These are a few mistakes that you might have made which lead you to more endurance than others. These mistakes could have been avoided, and keep these mistakes in your mind so that when such a cycle hits you again in the future, make sure that you are prepared for the same.

Anushka Trivedi is a freelance financial content writer. She can be reached at anushkatrivedi.com
 

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First Published: 01 Jan 2023, 10:19 AM IST