No man is perfect, even angels God finds mistakes on them. Overcome
difficulties and make important decisions on various subjects in everyday life
can be a daunting task which leads us to make mistakes and not always make the
best decision possible. Mistakes are normal we all fall to it all the time.
One major place we make big and deadly mistakes is in our finances.
If we don't pay attention to our finances and learn how to control, we will
constantly make the wrong decisions which can have adverse effects on our life.
It never too late to make the crooked path striate and
smoothing the rough edges of your financial life.
Get informed about
the mistakes we have made and still making, to gain more knowledge to make
better financial decisions so as to adopt financial habits, that will be able to help
device strategies and succeed in
personal finance. A list of common financial mistakes and how to overcome them.
You are not living within your means
Yes, it true today’s world’s economy is full of hardship and
prices of goods and services are on an upward surge. One of the financial
mistakes people make is to live far above their means. This is one of the most
common mistakes of those who are struggling to make ends meet. Parting, dining
in restaurants, going to the movies, shopping every month or week, having an
exotic girlfriend or boyfriend most useless of all is buying designer clothes
or shoes when they have trouble paying for everyday expenses such as rent or bills.
These people have a lie they tell themselves, my financial problem is due to
the high cost of living or price increases making them not to manage their
finance properly. They never realize they are living beyond their means. At the
end, they are forced to take loans in order to finance their expenses. The first
step to overcoming this challenge is to work out a good budget and spend less
than you earn.
You are never tracking your expenditure
When was the last time you sat down to take stock of your
money usage? Another money mistake people make is that they do not track their expenses.
They think that it is a waste of time and that in any case, it will do them no
good when precisely it is the key to control their finances. Keep track of the
way you use your money. There are a number of apps available to help you stay financially
organized
You lack the habit to save.
Ask yourself how much of your monthly income go to savings
and sincerely how much do you have in your savings account as at now. You have
to make it a point to invest at least 10% to 20% of your income. For extravagant
this might look unsurmountable but it possible and achievable.
Savings enable us not
only cope with the unexpected but also to finance projects without having
to resort to credit. Every month make a conscious effort to set aside 10% of
your income if you can do more that is great. It for your own future.
You are not using the credit card wisely
The credit card has become an extension of your income. The little
thing you are reaching for it. Have you realized that using money that you have
not worked for is easy and painless? The credit card has become a solid and
suitable companion, a bedfellow only death can separate you two. Am sorry you
are being foolish, have a budget and respect the credit limits set by the
personal budget rather than the limit offered by the bank. The bank is happy
when you exceed your limit because they make more off you. So do not be unwise,
live within your means and you will be fine. This is not to say credit is not
good, indeed it is a useful and convenient way to finance large purchases such
as your home or car. But know when to use it and what to use it for.
You spending more as your income is
increasing.
We, humans, are never satisfied, we are like the graveyard
which is never satisfied with dead bodies. You use to live in a single room
apartment now you want something spacious and luxurious. You hardly visit the
restaurant but now you do so like you are visiting the washroom, every now and
then you are going shopping, today you are traveling to this place tomorrow you
are at another place all because your income has seen an increment. A raise in
pay should not be an excuse for you to spend more. If you have made more money,
you should concern more about planning around the goal of financial
independence and family priorities. Do not gallivant about spending wildly and raising your standard of
living high because it will do you no good.
You are always buying on impulse
Impulse buying is one of the money mistakes most of us do.
Most people anything they see they want to buy why? Especially our wives daughters
and mothers. Today you see her buying this shoe tomorrow another while she is
got a number of them in her wardrobe. Impulse makes us yield to a special and
enticing offer of a product that ultimately we do not have use for, or use very
little. Always ask yourself whether what you are buying is needful or not.
Not taking advantage of available
investment opportunities.
Today there are a number of financial products to invest in. Do
not be part of the many who think that investing is possible only for those who
have a lot of money, that mentality is wrong. There are great investment
opportunities you can select from. The best you can do is to ask the
professionals or someone you know has knowledge about investment. For your
information, you do not need a million-dollar to start investing but with the
small you have and a good investment plan you can make millions.
You do not plan ahead of time
Do you know that planning ahead saves you money when it
comes to food? Make a distinction between foods that you can freeze or cannot
freeze and choose a date on which you will use them. This will make you only
waste less food, you always have something to eat when you have not cooked.
Thinking ahead can help you avoid unexpected events that cost you a lot of
money. You can share trips to school or
work with others. This way, you can reduce your costs considerably in a blink
of an eye.
Hold a credit card without really needing
Revolving accounts, especially credit cards, often have high
interest rates so carrying a balance can be expensive. Having a credit card
pushes for its use which is detrimental to finances, especially if you have a
facility to spend the money available on the card which is, of course, higher
than the one you actually hold. So please if you do not need it stay off it
because as at 218 average interest rate on a credit card was about 14.1%, and
some were as high as 30% in the USA. Therefore by analyzing your needs, you may
be able to see that you do not need or could use another cheaper type of credit
to finance your occasional projects.
