Have you ever looked back at some of your financial decisions and wished you could have avoided them? Perhaps it made perfect sense at the time but over the years you realize that those financial decisions weren’t as smart as you thought they were. We all have misconceptions on correct ways to deal with our finances.

3 Common Mistakes that aren't smart-KSA

 

So we have talked to various people and interestingly the three common mistakes were :

I can skip on my medical checkups to save money

A common misconception you may have is if nothing hurts you can skip your annual health checkup as it costs money. However, this decision can harm you financially and physically. A simple health problem which goes undiagnosed can become a much larger issue later on. Treating it at that point will cost you a lot more money compared to the savings you made avoiding the check-up.

If you don’t have health insurance, invest in one as it will save you money in the long run. Compare health insurance packages in Saudi Arabia and see if they cover routine check-ups. A few insurance companies even provide cover for routine dental check-ups. For example, ACIG Medical Insurance or Al Rajhi Takaful Class VIP in Saudi Arabia both provide routine dental check-up for an amount up to SR 2000.

I have time to write my will

We keep postponing the process of writing a will thinking there is plenty of time. However, unforeseen events can happen to anyone. Get down to writing a will as soon possible even if it costs you money to hire a lawyer. In the case of Saudi Arabia, not having a will means sharia law will be automatically applied and if this is not how you want your assets to be split, make sure you do the necessary arrangements. For that reason, spend some of your riyals writing up a will and safeguard your family and assets.

If it is free so I should get it

You always come across financial deals proposing discounts on profit rates or annual fees but succumbing to them without careful consideration will harm you in the long run. For example, banks try to attract customers by wavering annual fees on credit cards during the first year or allow deferred payments on personal loans. Think about the long term costs of these products, their future profit rates or hidden fees which you have not budgeted for. For instance, with some credit cards, not paying off your payments in full each month could cost you more than the rewards in the form of high profit rates.

Above are just a few common errors we make thinking they are best for us. Consequently, always think about the long term percussions of your financial decisions and its effects on your future.