Four Worst Money Mistakes
Most of us are just making it up as we go. The truth is that we all need financial advice no matter how little the money you make is. Ever wonder where all your salary went even before the second week of the month?
Read on!
#1. Using your savings account to pay off your debts
If you find that your salary never seems to be enough, you might end up borrowing money to balance it out. The problem with this is that you could end up touching money that should not be touched. I’m talking about your saving accounts.
What may have been going through your head?
You’ll be free after paying all your debt and have more breathing room without someone constantly on your neck.
The Mistake: Money taken can later be refunded. No, more likely not to happen, it requires real discipline, and lack of it is why you are in this situation in the first place. A situation that seems to justify not putting the money back will just seem to come out of nowhere, that’s if your mind does not convince you with a thousand other reasons why it’s not such a big deal after all that the money stays out after all.
#3. The absence of emergency money
Having emergency funds is very important, not just for you but also, for your family members and close friends. The sad fact, however, is that some of us think that nothing unplanned will ever happen to us. This is not true and is a very dangerous way to live.
Don’t rely on your good karma.
What was probably going through your mind?
You don’t live a dangerous life neither are you in a dangerous line of work. This may be true but we live in a very unpredictable world with a lot of ‘unstable’ individuals and so on.
The mistake: In the event of an emergency whether it is to evacuate an area or having an immediate surgery, money is necessary to make the process smoother and less hectic. Don’t be the person who just spends all you have without saving any for a rainy day.
#4. No Budget?!
What was probably going through your mind?
Maybe you were thinking that you do not owe anyone so there is no need to budget your money. You’d rather live life free.
The mistake: will be that an unforeseen event will occur where you’d wish that you had budgeted your money a lot better. ‘What if’ is never a good thing!
#5. No Insurance
What was probably going through your mind?
‘It won’t be me. My house won’t burn down. I won’t have an accident; I am a good driver.’ This is what was going through your mind.
The mistake: No one ever plans to fall ill or die. But please get insurance for everything, if you can.
