Common Financial Mistakes to Avoid
Posted by MoneyKey on July 5, 2016
For many, it is not easy to stay on track financially to attain their ideal, comfortable lifestyle. Mistakes are a part of life, and it is always better to learn from others than to make them yourself. There are a number of common financial setbacks that can keep you from achieving your goals you’ve set for yourself, but, before you opt for that costly pair of shoes or that new TV, here are a few ideas to think about to that will help you to maximize your paycheck and optimize your financial standing.
- Avoid Unnecessary Spending/Splurging: The most notorious mistake most people seem to make is not knowing where their money is going. It may not seem like much at the time, but specialty coffees and lunches on a daily basis can add up to a pretty penny. Simply brewing your own coffee at home, opting for the thermos and putting your lunch together the night before can save you a bundle. Also, avoid splurging on designer brands and make an effort to live within your means. You’ll thank yourself later when you have the extra cash for an unexpected expense or emergency.
- Emergency Fund: Always try to save some money for a rainy day. Life is full of unexpected events that may warrant you to spend, and if you don’t have anything put away, you may find yourself in a tighter situation than you intended. You don’t have to throw a large amount of money in all at once, but you can gradually add to the fund each paycheck to help it grow to an amount that you’re comfortable with. If you can afford to, save $25 a Doing this can give you a $250 emergency fund in just ten weeks!
- Budget, Budget, Budget: Don’t be caught in a tough financial situation you didn’t budget for. Spend some time calculating your earnings, expenses and set a staunch financial goal for yourself. Budgeting helps you gain greater control over your finances. Try not to waver from this goal and stay on track.