In today's financial climate, we are being forced more and more to take a look at the way we handle or finances. If you're 100% happy with your situation then that's fantastic, you have your money under control. However, you may be making one or more of the following money mistakes. Read on to learn more about them and how to avoid them in future.
Lack Of Planning
How many times have you treated yourself to a nice meal out, or a great new outfit, only to find that a couple of days later you get your utility bill, and realize you haven't got enough money to pay for it? Of course, if you'd thought ahead, you would've known that it was due soon, and probably would've held back on your purchase.
Get into the habit of looking ahead (up to three months, or longer if you've made a particularly large purchase). This helps give you perspective, and to make more informed decisions rather than spur-of-the-moment purchases.
Buying With Credit
Although today's credit cards are typically available at a lower interest rate than they used to be, the burden of increasing balances and monthly payments can make buying on credit a risky business.
If you really must buy using a credit card, make sure you don't forget about your purchase, and do your best to pay it off as soon as possible. Better still, cut up your credit cards now and live on money you actually have!
Not Saving For Your Retirement
Although it may be a long way off, your retirement will come around much faster than you expect, and when it does, you don't want to find yourself struggling to pay for your food or heating. Get into the habit of setting aside a little money each month and put it into your retirement account. Saving around 10% of your income is a good figure to aim for.
Not Shopping Around
When making a purchase, don't just settle for the first price you find. Barter with the sales assistant over the price, visit other stores to see how they compare, ask stores to price match their competitors, or go online to see if you can find the same product cheaper. You'll be amazed just how much money you can save in a relatively short amount of time, just by being a bit more savvy when shopping.
If you are able to consistently avoid these money mistakes then you will be well on your way to being in control of your finances, leaving you with less worries, and more able to enjoy life.
Lack Of Planning
How many times have you treated yourself to a nice meal out, or a great new outfit, only to find that a couple of days later you get your utility bill, and realize you haven't got enough money to pay for it? Of course, if you'd thought ahead, you would've known that it was due soon, and probably would've held back on your purchase.
Get into the habit of looking ahead (up to three months, or longer if you've made a particularly large purchase). This helps give you perspective, and to make more informed decisions rather than spur-of-the-moment purchases.
Buying With Credit
Although today's credit cards are typically available at a lower interest rate than they used to be, the burden of increasing balances and monthly payments can make buying on credit a risky business.
If you really must buy using a credit card, make sure you don't forget about your purchase, and do your best to pay it off as soon as possible. Better still, cut up your credit cards now and live on money you actually have!
Not Saving For Your Retirement
Although it may be a long way off, your retirement will come around much faster than you expect, and when it does, you don't want to find yourself struggling to pay for your food or heating. Get into the habit of setting aside a little money each month and put it into your retirement account. Saving around 10% of your income is a good figure to aim for.
Not Shopping Around
When making a purchase, don't just settle for the first price you find. Barter with the sales assistant over the price, visit other stores to see how they compare, ask stores to price match their competitors, or go online to see if you can find the same product cheaper. You'll be amazed just how much money you can save in a relatively short amount of time, just by being a bit more savvy when shopping.
If you are able to consistently avoid these money mistakes then you will be well on your way to being in control of your finances, leaving you with less worries, and more able to enjoy life.
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