Whether you have a lot of money or not, you have to know how to spend it wisely, save and invest prudently. Here are mistakes often made with money, but luckily, easy to avoid.
- Plan for the short term
It is always better to plan an annual budget rather than day-to-day, because of the tendency to overstate monthly expenses but to underestimate those that spread out over the year, resulting in a bad budgetary surprise…
- Put your head in the sand
It’s easy not to be overly concerned with finances; do not look at their account statements, invoices and even, do not discuss money with their partners for fear of conflicts or disinterest. Many use these strategies to avoid financial management. But better to spend some unpleasant moments there than to avoid the situation, which can get worse.
- Not knowing what you are spending
Many know the amounts in their checking accounts, bills, rent or mortgage to pay each month. But what about the smallest expenses? From groceries to clothing, entertainment and restaurants, it’s important to keep track of the bill, as the bill can go up quickly.
- Depend on credit
Using credit to pay for things you can’t otherwise get can be handy, but many do it without a plan or intention to pay off credit purchases. One day, however, it will be necessary, because you must not forget that credit is borrowed money that does not belong to you.
- Pay no attention to gift cards
Several big-box stores now offer gift cards, which are actually credit cards. They generally push, according to several analysts, to overconsume and spend unnecessarily, and this, at an accelerated rate to have faster access to bonuses. These cards also have a very high-interest rate.
- Not having an “emergency fund”
Having savings in a fund set aside for this purpose is not just about buying a last-minute plane ticket, but more importantly, it will allow you to survive if you get seriously ill, have an accident, or any other emergency. an order that will ask you to miss work for an indefinite period.