All of us are all guilty of making most common financial mistakes! You cannot avoid them if you don’t know what they’re, so check out some of the most common and repeated financial mistakes you might be making.
1. Not having emergency savings
How many people do not have emergency savings or spend it on unnecessary items these days? When you don’t have a rainy-day fund you either deplete your bank account and perhaps over budget or go into debt. Not having emergency savings is one of the worst financial mistakes you might be making!
More: 7 Ways to Start a Savings Account
2. Not making a budget
This is perhaps the biggest financial mistake you might be making. It’s easy to swipe your card without even thinking where your money is going. When making a budget, necessary expenses and bills should be first, and only then leisure expenses. Keep in mind that prioritizing is very important!
3. Getting into more debt
Sometimes it’s really hard to save up for something you want, but don’t get into debts! It’s better to wait a little and pay outright cash. I know sometimes debt unavoidable, but try to distinguish between unnecessary debt and necessary debt. Do you really need two houses right now? I’m sure not!
More: 8 Best Ways to Pay Off Your Debt Faster
4. Spending your money
Sure, we need to spend our money to live. However, there’s a huge difference between what we need and what we want. When you spend your money on what you want, then when you have to buy what you need you might be in a bind! Try to distinguish between the two and avoid overspending.
5. Making big purchases without thinking it through
Many people make a lot of big purchases without thinking it through. With big purchases, it is significant to take time and think it through. First of all decide whether you really need it right now or whether you can afford it. And don’t forget to shop around for the best price!
6. Buying more than you need
Most college age young people or newly married couples feel like they should start out their life with all those great things their parents own now. But they don’t actually realize that their parents started out with fewer things than they currently own. Don’t start out and get into debt to purchase a 5-bedroom house and three cars. Always purchase what you can afford and what you currently need.
7. Having wrong attitude towards money
Having the wrong attitude towards money is another most common financial mistake! Money is just meant to aid your life, but not control it. Nowadays many people allowed money to control their lives. And while it’s okay to strive for more, you shouldn’t let it consume you!
8. Ignoring the importance of savings
If you live paycheck to paycheck, it seems impossible to find that extra $10 or $15 a month! But when you can start to scrape together some money you can build up some real savings. When you start to watch your savings grow, you will feel much better. And don’t forget about a retirement fund. It’s also important.
Don’t worry if you are making any of these common financial mistakes! Just start to get yourself out of debt, step by step. Well, girls, have you made any of these financial mistakes? Share your thoughts, please!1