We all make mistakes – and not just when it comes to our finances, but when it comes to our personal lives as well. In the end, it is in our nature as humans to be flawed – but it is also in our nature that we don’t let ourselves be influenced by our flaws and that we constantly want to become better.
Like most people out there, you probably make at least a handful few money mistakes – and that’s only natural. However, spotting these mistakes and “fighting” against them can help you build better finances and more confidence in your ability to be a better version of yourself.
What are 5 of the most common mistakes you are probably making as well? Read here and find out more.
You don’t plan
When the payday arrives, most of us feel tempted to “plunge” into our salaries as if they were a pool of never-ending happiness. Except that money doesn’t bring happiness and it’s definitely not never-ending for the vast majority of the global population. On the other hand, money can make you feel really miserable, especially if you don’t plan things ahead of time as you should.
So, plan. Plan your budget for every month, plan your savings for every week and plan your larger purchases for every year. Don’t let yourself be taken away by impulses!
You don’t save
If you don’t save money, it is very likely that you will have to apply for some sort of loan as soon as you have to meet an unexpected emergency (such as having to repair your car, for example). And that can be a very dangerous path to go down on!
Saving money can save you from a lot of unwanted trouble and it can allow you to have some financial security even when things go terribly bad.
You carry a balance on your credit cards
Credit cards can be very useful, but they can also be the stimulators of bad financial behaviour. If you carry a balance on your credit cards, you are liable to spend more than you can afford every month – and this is a cycle that needs to stop as soon as possible.
Close your credit cards in full and reap all the benefits offered by these small slices of plastic!
You don’t care about your credit score
Like it or not, your credit score is the kind of number that follows you wherever you go, especially when it comes to your financial path. Take care of your credit score and you will most likely be able to land on better rates for your mortgage and for the other large loans you are probably going to take in the future.
From closing the credit cards in full every month to paying the bills on time, everything can add points to your credit score, so it is important that you show that your financial behaviour is mature and responsible!
You speak too much
Speaking about your finances in public is perfectly fine. But sharing very personal details about it is definitely not. Nobody aside from you should know your social security number, your credit card number or any other details that may be easily given away. Even if you trust someone completely, you don’t know how things can slip and who may listen to them!
Stay safe and never share your financial details with anyone!