Killer Financial Mistakes Of Which Everybody Is Guilty | Personal Finance Views

Wednesday, October 29, 2014

Killer Financial Mistakes Of Which Everybody Is Guilty

When it comes to personal finance, we could all do with taking a masterclass. Budgeting is never easy. You want to lead a fulfilling, rich life. Sometimes that means that you need to splurge. Problems arise when you spend more than you earn. You need to ensure that you take responsibility for your finances. You are likely making some of the most-common financial mistakes. Here are some killer mistakes that we all make now and then.

Financial Mistakes

Sharing a bank account with your spouse

Okay, so it might seem as though it’s the right thing to do, but sharing bank accounts is a minefield. If you and your spouse share just one bank account, it can cause some serious issues. If you have different views on spending, having a shared bank account will turn into the source of many arguments. If you want to save for your future together, you can open a mutual savings account. Make sure that you still have separate current accounts, though, as it is important. You are separate people, and your money is private. Keep it that way.

Failing to research investments.

If you invest money into various companies, you need to do your research. People tend to go with gut instincts or simply guess when it comes to investing. That is the wrong approach to take. Before you make an investment, see whether it is safe. Investing is a great way to save and make money, but you have to be smart about it. Thinking that you can blag it will mean that you lose your money fast.

Spending money without thinking

Impulse buying is one of the biggest drains on your finances. When you’re out shopping, you need to make sure that you think about the things that you buy. These days people tend to spend money without even thinking about it. When people design stores, they use psychological tricks to encourage you to buy more things. You need to make sure that you resist the temptation to overspend.

Taking out payday loans

If your money is tight, you might find that you are desperate. A payday loan might seem like a quick fix to your financial troubles, but it is not. Payday loans have massive interest rates. That means that you may only borrow $200, but you’ll end up paying around $3000 for the privilege of doing so. You need to ensure that you resist getting a short-term loan. If you can’t afford something, you might need to do without it for a while. That is much better than getting into debt.

Over-planning your finances

There is such as thing as over-planning when it comes to finances. If you plan where every cent of your money is going, you leave no room for emergencies. If you are a highly-organized person, you may think that planning is a positive thing to do. Whilst in most cases that is true, there are some cases when you need to take a step back. When you make a financial plan, leave some money aside for nothing. People always need more money than they think they will, and so getting into the habit of saving is a good idea.

Ignoring debt problems

If you have debt problems, there is only one thing you can do about them. You need to face up to debt as soon as possible. The longer you ignore your debts, the worse they will be when you finally pay them. That means that if you waste time now, you will end up paying more money later. Make a viable plan to start paying off your debt now.

No comments: