We all make them at some stage and hopefully we learn from them and move on. Some things though you may not see coming, so it’s nice to get a “heads up” on the mistakes other people make.
Discover how to be smart with your money by not falling into the money traps that most others so regularly do.
Getting a gem that will save you from a big mistake is priceless so hopefully you might pick up a useful tip here.
Who handles the money in your household? If you are completely blind about your household spending then gaining control of your financial future is an impossibility.
If your spouse hides money or is just plain reckless then you need to know about it so you can plug the leak. Many people have found out their partners have a gambling problem when it has been too late. Take a level of shared control and avoid the worst case scenario.
Too much debt can push finances to the brink of bankruptcy, destroy families and marriages so the need to be on top of your debt is as blatant as it is important and yet many people keep on spending what they don’t have – Why? – We want stuff, lots and lots off stuff, of course the problem is if we don’t come up with the money to pay the debt that having stuff incurs then we lose even more money in interest and penalties.
The solution is to have a plan to manage what debt you have and to take steps not to accumulate any more if possible.
Consolidate your debts to save money and try to bargain your interest rates down (it’s worth a try and it works) and tighten your spending immediately to avoid one the the biggest money mistakes.
Many people just spend whatever they have (and more) just because they don’t know any better, but they don’t save anything at all so the bank balance is flat-lining.
If you don’t save you can’t invest and if you can’t invest then you can’t build a platform of wealth for your future. Look to save at least 5% of your income on a weekly basis and be mindful of spending just for the sake of it.
The later you start the less you will have, if you intend to pay off you mortgage – well, that is a saving of sorts but it won’t pay for your retirement. You need to be proactive and look for ways to contribute more to your future retirement. You may be sorry if you don’t.
This is an attack on your role as a consumer, but don’t take it personally – Are you being brainwashed by advertising?
Do you believe the stuff they try to tell you because to them you are just a dummy with a wallet full of cash just waiting to be duped with false claims and half (or quarter) truths?
Be smart, be aware and don’t make purchases without knowledge of the product or you may be throwing good money down the drain.
Bogus skin creams and baldness cures have been touted for eternity, but now new commercials are getting smarter and are trying to trick you with other sleights of hand.
Don’t think for a second that expensive means best or that because the new multi action super cleaner contain new high power cleanscam to add 30% more awesomeness to your washing load, because jargon is there to make you think something is far better than it probably is.
Ask your friends, seek intelligent advice and definitely surf the web, but always look to become a sharper smarter consumer because the multinational companies are waiting for you to make money mistakes so they can pounce like a pack of dogs.
Okay, maybe I’m too skeptical of large advertising budgets and low product investment, but I have your best interests at heart. Be the discerning consumer and you will avoid burning your cash to oblivion.
Why wouldn’t anybody look for a way to save a dollar, the world is full of new products that want you to try them so they reduce their price to get consumers interest. This is just one of many types of discounts that are available daily, so be vigilant and hunt down a bargain.
Some discount shops have great value items compared to other retailers the key is to find them and make use of their offers. Money you save on spending is money you can save in the bank.
Control your spending by shopping smarter
Unless you have absolutely no choice then you should never purchase a vehicle or anything with a “loanshark” loan.
People often get excited about a product and to avoid the common hassles associated with banks they take the easier high interest option(you would be surprised how many do this) and end up paying huge interest rates for their purchase.
These purchases can end up costing twice (or thrice) the products value and often financially cripple the borrower. Be wise about loans and make sure you know the best deal that you can get.
Actually any fees really, be they late fees for movie rentals or default interest rates on credit cards, you must be proactive in avoiding the manageable expenses.
Pay your credit card debts first even if it means not paying for the phone bill, often you may just get a $5 late fee on late phone bills(but you should really check your contract) but a default credit card rate can cost you hundreds.
Procrastination of bill payments is just paying cash for laziness. Take the initiative and beat the fees.
Not reading your contracts thoroughly can lead to nightmare results, so always read the fine print. One of the most common money mistakes people make is to browse a contract and miss vital content and then get stung with fees and costs that they never saw coming, but the information was right there in the contract if they only bothered to pay attention.
In most countries the cost of a good accountant is tax deductible and for that reason alone you should use one, but any good financial savvy accountant worth his or her calculator should be able to maximize your tax deductions and stop you handing your government a free donation.
I’m thinking you believe you deserve it more than than overpaid politicians so why throw good money away by not planning your taxes to the best interest of You.
Bad money habits mixed with no will to change can lead to the financial scrap heap. Be smart and be proactive with your money and finances.
By avoiding really common, yet often missed pitfalls, you can be more financially aware, prudent and gain the tremendous benefits that smart people already are enjoying.
Be smart with money!