Top 5 money mistakes millennials should avoid in early career

1) Too many expenses and loans

Initially try to avoid unnecessary expenses and getting into huge loans. I am not saying to avoid pleasure or don't spend on something you like. Plan your expenses early or keep some funds aside to spend on things you like.

Avoid unnecessary loans completely and save as much as possible. A home loan or car loan may be okay provided you have plans to repay it strategically

2) Over concentration in real estate

The biggest mistake people in their 40s have made is to buy property for their children. Don't repeat their mistakes.

Home as a need is acceptable, but using it as a retirement tool makes your portfolio underperforming. Get a good house & forget for 10-15 years and focus on building an equity portfolio.

3) Last-minute tax planning

Millennials do talk about investment, but while making calculations don't take into account taxes. Also thinks about investment for payment-based income tax deduction after their employer asks for bills for filing form.

Remember:

i) tax has a huge impact on your investments. Always take into account.

ii) start planning your taxes early because many govt. schemes have specific dates to invest for higher returns.

4) Ad-hoc investing and lack of goal-based planning

If you have started earning recently, it is ok to invest % of your income. But when you get habituated with it, start goal-based investing.

Define your goals(you need to do life planning) and start investing based on your goals

5) Inadequate insurance

When your family is dependent on you, it is your responsibility to have a backup plan in case you are not able to earn.

Get enough health insurance and life insurance ASAP.