Managing expenses is a tough task if you have not budgeted for it. But what about unknown expenses that hit us out of the blue. At times, even expert investors find it difficult to manage such expenses.

A quick review of such mistakes may help us to manage them better:


As mentioned in the previous article, as parents we aspire to provide the best education to our children. However, this best education may come at a cost which may not be justifiable. While shortlisting the colleges for higher education, we need to inquire for scholarship and financial aid options being offered.

A lot of colleges offer scholarships to deserving students or students who score high marks in their exams. Secondly, many high profile colleges are located in large cities where the cost of living may blow a big blow in your overall education plan.

This may result in you taking an education loan for the child or the child taking up a part time job to part fund his education expenses. It is important to take decisions with your head rather than your heart.


Once we have a stable job and family, we desire to have a home in our name rather than staying on rent. While this may sound good on paper, it is important to analyze our income sources.

Banks and financial institutions are more than willing to give home loans as it is the safest loan to give due to the collateral of the house. But the catch is the payment of the monthly EMI which can go on for as long as 30 years.

You need to have a backup plan in place in case you need to change your job to another city, face a medical emergency or require money for child’s education. It is important to think about all of these unforseen events before taking a home loan.


As mentioned in one of our earlier articles, retirement planning is the most overlooked and avoided subject in any conversation among young salaried employees. Nevertheless, the implications of failing to plan for retirement can be disastrous for you and your family.

Therefore, you need to take the following steps: Save 12% of your monthly income if your are a salaried employee Invest your salary hikes towards creating a comfortable retirement for yourself and family At every stage of your life, ensure that you have balanced mix of equity and debt in your portfolio. Do not go overboard on any asset class. Periodically, rebalance your portfolio to maintain your asset allocation.

Key Takeaway:

Always prepare for unexpected. Have a backup plan in place. Be Patient and wise while investing your money.