You might think you only need to watch your finances carefully if you’re struggling to make ends meet, or if you have a business. Well, my misinformed friend, you’d be wrong. The fact is, no matter how much money you earn and how you’re making it, you need to take care of your personal finance.
If you fail to keep a close eye on this, then you might very well end up struggling, or much worse, in the future. It’s fun and games until you can’t afford medical care and you have bailiffs knocking at your door. To help you out, here are the personal finance mistakes you’ll live to regret:
1. Not Having A Plan For Your Money
It doesn’t matter how much money you make, you need to have a plan for your money. It’s all well and good spending as much as you want on what you want, but eventually, this will catch up with you. Make sure you keep enough in your account for your bills. Set some aside for a rainy day. Decide how much you can put into investments – this is the only real way to build wealth! Then you can set yourself a satisfactory number to play with and buy what you like. This is the only sensible way to use your money!
Having goals for your money is a good idea too. Do you want to be able to buy your own house in 5 years? Perhaps you want to have invested in a number of properties? Think about it carefully and set them for yourself.
2. Getting Into Too Much Debt
Some debt is necessary. After all, you want a great credit score. This means getting into debt you can handle and paying it off on time, with things like credit cards. However, getting into too much debt is a no go. If you find yourself doing this, you’ll need to be honest with yourself as to why you’re spending more than you can afford. If you fail to do this, eventually, you’ll be meeting with bankruptcy attorneys to help you get out of the mess you’re in. If you’d like to stay stress free, it’s a good idea to only get into debt you can afford.
3.Being A Non-Stop Consumer
We’re programmed to believe that the next thing we buy will make us happy. That’s why we’re never done buying ‘stuff’! We’ve all felt excited by a new purchase and then noticed when the novelty has worn off and it’s just another thing we own. Aim to be more minimal with your spending.
4. Failing To Think About Purchases
If you’re thinking of making a big purchase, think about it properly first. Don’t consider it for a day and then go right out and buy it. Think about it for a few weeks, at least. If you find that you stop thinking about the product in this time, you probably didn’t really want or need it.
5. Not Discussing Goals With A Partner
If you have a partner, and even a family, having regular meetings to stay on top of goals and make sure you’re on the right page is a must!
Don’t live to regret these personal finance mistakes!