Everyone makes money mistakes but if we don’t learn from them there is a chance that we will continue doing them. Often the worst money mistakes are the simplest, the ones we do in our everyday life without noticing. In this post we will break down the most common money mistakes we have done in our lives.
Not saving enough
There is an old saying that goes: “If you make a lot, save a lot. If you make a little, save a little.” A big percentage of people are not saving enough and we know well that is full with unexpected surprises. Paying yourself should be your first priority when you receive your salary. Ideally, 10% to 15% of your income should be going into a saving account. If you are behind your funding goals, you probably should save even more.
Going without a budget
If you and your family want some financial security, budgeting is the way to go. A clear budget helps you understand your long term goals and work towards them. Budgeting also makes you map out your monthly or yearly goals, save your money, keep track of your progress and make your dreams a reality.
Building a budget forces you to take a closer look at your spending habits and focus on the things you really need.
Getting behind on your payments
When you fall behind on your bill or debt payment it can be an extremely stressful situation. Each month , your aim should be to make on-time payments in full because failing to do so will impact your credit score in the future. One way to avoid that is to enrol in auto pay or direct debit. This will save time, money and frustration.
You pay too many fees and subscriptions
When was the last time you made a check on your subscriptions. Are you paying for a gym membership that you don’t even use? Have you forgotten to stop that free trial? Take a look at your bank statements and note down the subscriptions you’re spending money on. You might find a service that you don’t use but you’re still paying the fee for.
Skipping the retirement savings
We don’t really think about retirement when we are in our 20s and perhaps even our 30s. But according to financial experts a person in their 30s has the tremendous opportunity to get the benefits of compound interest, where even small amounts invested can grow large over enough time. The earlier you start saving, the less you have to save.