Money Mistakes You Should Avoid

In our younger years, we have mostly focused on how we can finish college trying hard to graduate on time. For those who may need to support their own education, dividing their time between school and their part-time job surely would have made it difficult to get by. Either way, finally having the diploma is a symbol of their perseverance. Starting on a new phase of their lives, most of these graduates are just too eager to earn their first million.

 

There is truly nothing wrong to become ambitious, as you set your eyes on a goal that would someday place you in a more comfortable and satisfying kind of life. Unfortunately, having our minds focus on what we want to achieve, we fail to see some of the things that have caused them to fail in a way, that instead of us getting to where we want our lives to be, we end up with a chain of failures.

 

 

The guilt from a money mistake can remain for quite some time and may end up causing more mistakes. Not being able to recognize these can cause problems in your finances and sometimes affect your relationships, as well. Therefore, it is best to have a better knowledge of how to spend your money wisely and to learn to make a commitment to do better in the future.

 

Here are a few money mistakes that you should avoid:

1.Failure to create a spending plan.

This is the most common money mistake that people make. Knowing that the latest iPhone will be on the market soon, we focus on having the next great mobile phone without realizing that there are other more important things to spend our money with. Just imagine how some high-end mobile phone users don’t really make use some of the features of their phones. And the reason why they buy these expensive phones is just to prove to people that they can afford it. But can they really afford it?

2. Spending money on impulse.

Seeing a huge billboard ad saying that there will be a 3-day sale at a certain mall truly entices anyone to just shop without truly thinking if they need them. Example, a bag of chips at 10+1 promo – you may want to buy that particular product, but you can only save a few pesos if you purchase in bulk. Now, if you have a store where you can sell them, then it is a good buy. However, if you will just be eating them, don’t you think that you are just spending unwisely and just be pushing yourself to eat unhealthily?

3. Paying unnecessary bank fees.

This is also one common mistake among credit card holder. Thinking that they can just purchase anything until they max out their cards, that paying a month’s bill for several months would still be equal to the amount purchased. Unless there are items that can be paid at 0% interest, then it is fine. Otherwise, your account will incur finance charges that grow until you have settled your credit card bill. Sadly, most credit card companies lure people into having one in which most people take the bait.

 

4. Ignoring receipts.

We should always make it a habit to check our receipts before leaving the cashier because sometimes, the cashier may accidentally add another item which you did not purchase. Also, it is important to keep them, particularly when you are purchasing electronic devices or appliances. In case you need to return the item or have it repaired, you need to have a proof. Otherwise, you might end up having an endless argument with the sales clerk or sales manager. Not unless they allow you to be serviced without proof, then you might just find yourself buying another one.

 

5. Falling for easy-money.

You may have noticed just how many people have attempted to entice others to invest in a networking business for a certain amount, promising people that it could double up if they “recruit” people to invest with the same amount. For the pioneering groups of such networking business, they have truly earned the most. But after some time, newbies would not be earning as much and some may not even break even. Instead of relying on easy-money, it would be much better to invest your money in things that would truly earn a profit like real estate or insurance. Just ensure that you deal with legitimate people.

 

 

 

 

6. Not setting an emergency fund.

Of course, we don’t want any bad thing to happen to us or to our family. But accidents and sickness can happen. Learn to save at least 1/3 of your monthly income for your emergency fund.

Money these days are hard to find. And to spend them unwisely is just wasting all our efforts in earning them. Learn to prioritize the things that the family needs and learn to save. Not everyone may have been given the opportunity to have a good-paying job or having a successful business. So why put them to waste?

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For questions and more information, you may contact Armando “Butz” Bartolome

By email: [email protected]

FB Page: Butz Bartolome

Website: https://www.butzbartolome.com