Money Mistakes – At some point during our lifetime, we spend more than we planned, saving less than we needed or just making some terrible financial decisions.
Several financial failures here and there can lead to a lot of lost money.
Check out these common money mistakes and follow the tips to help put you on the path to a brighter financial future.
Whats Coming Up? - Table Of Contents
Money Mistakes #1: Not Knowing Where Your Money Is Going
What is the fix? Making a budget is the best thing you can do to find out all the ways that you throw away your money.
At the end of the month, you see that you spent $250 on fast food or new items on Ebay and $0 to pay off your high-interest credit card, then you need to make some adjustments to the costs.
Money Mistakes #2: Absence Of An Emergency Fund
What is the fix? Try to save a bit of money if something unexpected happens.
The correct rule is that in the event of an emergency, 3-6 months should be saved. Set a goal and do not stop until you reach the goal.
You can be more sure of how much it costs to keep your monthly budget so it can be easier to find out where you can cut back to start saving for a rainy day.
Money Mistakes #3: Waiting To Save
What is the fix? Start saving NOW.
Opening an account for retirement in your 20’s can give you twice as much money as someone who will run one of them in 30 years.
My recommendation is to follow the Ten Percent Law. Take ten cents for every dollar that you earn, and put it on your savings account.
90% of your income will not be difficult to live, and you will soon have a lovely nest egg.
Money Mistakes #4: Debt With A High-Interest Rate
What is the fix? If you regularly over fulfill your current account using credit card advances or payday loans, you discard your money.
Borrowing is OK, but these forms of debt are high roads. These forms of debt most often come when you have exhausted all other options.
Money Mistakes #5: Repayment Of Debts In The Wrong Order
Large balances on things like student loans and mortgages may seem overwhelming, but these smaller credit cards that can hurt you.
What is the fix? Pay the card, the balance of which is closest to its limit (with balances close to your limit, reduces your credit rating), and then start discarding the card with the highest interest rate.
Also, refinancing billing balances (mortgage, etc.), To make payments a little more manageable.
Money Mistakes #6: The Cost Of Money You Could Get For Absolutely FREE
What is the fix? Do you know that you can get music, books, magazines, training classes, book clubs and even print services in the local library?
Just go to their site and see what they have.
Also, switch on your clothes, borrow from a friend instead of buying, and maybe have a chat whilst taking a walk through the park or visit the national park instead of going to the mall.
There are many free options. You just need to find them.
Money Mistakes #7: Buy Now
If you MUST have things before you have the money to cover them, you are the victim of a great American debt trap.
Just look at the interest payments – the debt is not cheap.
What is the fix? Do you buy things before you have the money to pay for them? Remember, debt is not cheap.
I believe that good things come to those who wait. I’m sure you’ve heard this before.
If you can wait longer to buy this important item and save money to buy it, you do not have to use credit cards with a high percentage. So you become free from debts.
Money Mistakes # 8: Spends Too Much On Housing
What is the fix? As we all know, it’s easy to spend too much on housing.
The rule of thumb: you do not have to spend more than 30% of your income on housing.
If this does not work for you, then living with your parents or roommate is an ideal strategy.
And, when you decide to leave on your own, make sure that your mortgage or rent does not jeopardize long-term financial goals.
Financial failures are certainly part of life, but it’s easy to recognize your mistakes and learn from them.
Do your job to stop making these common monetary mistakes. In the end, your piggy bank will thank you.
