Do you know that a lot of us make money mistakes we wish we could turn the clock back? You don’t have to let the regrets of yesterday prevent you from making the necessary changes right now.
In this blog, post you will identify the 9 common money mistakes we all make. This helps you identify with your own money mistakes so you do something about it.
1. No savings
Spending money is very easy than earning it. You must not forget t that you must do all in your power to protect your hard earned money. You do this by cultivating the habit of savings. Open a savings account. Start with an initial amount you can afford.
You instruct your bank to pay a certain amount of money every month into your savings account.
Your savings indicate how you prioritize your finances. Sometimes it is difficult to save money but do not despair if you fail to save in a particular week or month.
You must always remember, savings ensures you are covered when there is a financial emergency.
2. Using a Credit card instead of Cash
The use of a credit card is so pervasive in our society. This is not money you have earned. You will be tempted to use it because you will have the opportunity to pay it later.
The use of cash is an old tradition of keeping track of your money. If you don’t have cash then you don’t buy. Cultivating this habit can be difficult if you use credit card frequently.
3. Buying Liabilities instead of an asset
Liabilities withdraws money from your pocket while asset put money into your pocket.
Using your earned money to buy liabilities like a car, big screen TV, the latest mobile phone is the surest way to disaster in your finances. You must take a look at your big purchases right now.
Instead of investing your money in liabilities look for investment opportunities like rental property, stocks and currency trading.
Most people spend their money buying liabilities which do not add value to their financial portfolio. Choose between liabilities or asset now if you want to secure your financial future.
4. Having only a Job
A job only provides you with only one source of income. This is very devastating if you should lose that job today. You must seriously consider having multiple sources of income. You could look for an alternative way to create a side hustle to boost your income.
5. Not investing
One of the laws of money is an investment. If you only work and spend your money without the thought of investing, it is sure path to financial disaster.
It time to look at money as a tool for investment instead of spending. This does not mean you must not spend
money on the basic necessities of life which is crucial for your well-being.
You must talk to your bank to help you identify the various types of investment and see the one which will be appropriate for your circumstances.
6. Impulse Buying
Buying things you actually don’t need is an avenue which can cost you a lot of financial consequences. A lot of us buy things which we have not budgeted for when we go shopping. This is a huge drain on your finances. Take a look into your wardrobe, you will realize you have clothes you have not won since the last time you bought it. This is an indication of impulse buying.
You must always plan for the things you want to buy when you go shopping. In that case, you will have control over what to buy and what not to buy.
There is always the temptation to impulse buy. You should always ask yourself if this is something you need at the present moment.
Are you living from pay-check to pay-check? It is time you check how you are spending your money.. Perhaps, you are spending more than you earn. It is very easy to overspend if you do not keep a track of your spending every month.
The best solution to check your overspending is to have a budget projecting your expenses for the month. This will ensure you track every penny.
If you find budgeting difficult you can use a simple spreadsheet on your laptop to manage your finances.
8. Buying already cooked Meals
Most people like eating out instead of taking time to cook at home. It is always expensive buying already cooked meals or eating out in a restaurant.
You can learn to cook your own food at home so you can cut down on food expenses. Take look at your spending right now and see how much is going into monthly on eating out. You will be amazed after taking this inventory.
You can make a few changes today by learning to cook your own meals.
Here are a few cooking books to start your journey to home cooking:
9. Not Paying Yourself First
The idea of paying yourself is not common to most people. You must cultivate this habit of paying yourself first anytime you receive any income. Set yourself a specific amount you want to pay yourself every month
If you are finding it difficult to pay yourself first, you can set a standing order or direct debit on your checking account so your bank can pay this money into your savings account or emergency account every month. Do this every month before you begin spending the rest of your money.
A financial mistake is one thing you must guard against if you want to secure your financial future. You must take the necessary steps today to see the financial mistakes you are making right now. Write them down and quickly correct them.
We have all made financial mistakes in our life. You must not give up on yourself. You can bounce back again.
Take a look at the above financial mistakes mentioned in this blog post again and remind yourself the financial mistakes you are making right now