Everybody makes money mistakes, but it’s never too late to change your life and avoid the most common money mistakes that people do. So let’s start with the list.
I made a lot of money mistakes before I decided to change my actions with money. Some bad money decisions can cause problems in your finances very quickly so the best thing is to recognize the mistakes and make a commitment to doing better in the future.
Spending More Than You Make
You are making a huge money mistake if you spending more money each month than you actually make. You have to figure out how to fix this problem.
To start fixing this money mistake you can create a budget. A list of your income and expenses. And you can start cutting the useless expenses.
Buying A New Car
Another money mistake is to buy an expensive care that you can’t afford. My personal advice if you want to buy a car, is that the price of the car shouldn’t be more than your 5 months income. So, for example if you make $3000 a month, the car you buy shouldn’t be more expensive than $15,000.
Spending Too Much On Your House
A bigger house is not always better. If you don’t have a large family, choosing a big house will only mean more expensive taxes, utilities, and maintenance.
Living Paycheck to Paycheck
In 2018, according to the GOBankingRates, 57% of people have less than $1,000 in their saving accounts. Which means many households are living paycheck to paycheck, and a problem can become a disaster if you are not prepared. You should keep 3-6 months worth of expenses in an account where you can access it quickly.
You should ask yourself if you really need to make all of that monthly paid subscription, which don’t bring any value. Things like cable television, music services or expensive gym memberships. When you want to save more this type of payments is what you should avoid.
Going to the grocery shop without a list
How many times did you find yourself going to the grocery shop with a $5 items in your mind, but ending up paying for $40 products? This is a money mistake you should avoid. Always make a clear list of what you need and stick with it.
What are your money mistakes?