As we all know, money is the most import factor for having in a good life. You need money to eat, to keep warm and to have a place to rest your head at night. But managing your money can be anything but easy. If you’d like more money left over at the end of the month, then make sure that you don’t make these silly mistakes.
The number one mistake people of all economic backgrounds make is to send more than they have. Staying ‘in the black‘ is vital if you want to manage your money in an effective manner. This means you need to check regularly what is left in your account after you have had to pay for essentials like housing, food, and bills. An even better way of doing this is to have a set amount each month for spending money, and don’t let yourself go over. This will ensure that you don’t overspend, and your outgoing don’t exceed your incomings, which of course leads to debt.
Too many debts
Talking of debt, it can seem like we live in a debt culture. Everyone takes out loans for buying a car, for a mortgage or even for buying smaller items like entertainment products or clothes. But is this the way in which we should be living our lives? No. It creates a cycle of debt that which means you are always paying something off at a higher price than it would have been to purchase it cash. Also to get anything new you have to go into more debt. So they best way is to save for something you want without going into debt to buy it.
If you already have multiple debts that you are paying off, try not to take out a loan for anything else. Also, you can try one of the loans for debt consolidation. This means you will have one manageable debt to pay off each month, rather than lots of different debts at various interest rates. It can help you get on top of your finances and get the most out of your monthly income.
Buy unnecessary luxuries
A stupid mistake that we all make at one time or another is to purchase unnecessary luxuries. Some would say that we live in a culture of relative deprivation in the West. That is we have enough of the basics to survive for the most part. But the media is constantly encouraging us to want consumer goods that we don’t need and can’t afford like the latest smart devices, jewelry, clothes and designer bags. Most people feel deprived because they can’t afford those items, and this can lead them to go into debt to buy them. It’s hard to get out of this loop, but try to seriously consider whether you need certain luxury items for you part with your money. Do they perform better or is it because they are being marketed as high-end and desirable?