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 monetary mistakes and follow the tips to help put you on
the path to a brighter financial future.
Money Mistake #1: I do not know 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 and $ 0 to pay off your
high-interest credit card, then you need to make some adjustments to the costs.
Money mistake #2: absence of an emergency fund.
What is the fix? Try to save a piece 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 it until you reach the goal.
If you are not sure how much it costs to keep your monthly budget and find out
where you can cut back to start saving for a rainy day.
Money Mistake #3: Waiting to Save
What is the fix? Start saving NOW. Opening an account for
retirement in the 1920s 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
Money Mistake #4: Debt 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 mistake #5: Repayment of debts in the wrong order
Large balances on things like student loans and mortgages
may seem overwhelming, but these are 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
Money Mistake #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 talk with 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 mistake #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? 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 save on it, you do not have
to use credit cards with a high percentage. So you become free from debts.
Money Mistake # 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 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.