Our finances are always in peril. No matter how good they are they are always teetering on the edge of doom. In order for us to keep going forward we must guard our finances heavily. I have found an awesome read on the 5 most common mistakes people make. I’ve always heard that “mistakes are the best way to learn preferably someone else’s”
This is a great article make sure to check out the full version!
Not having clear goals.
One of the most important things you can do when planning anything is to make goals for yourself. I don’t mean simply making goals that you keep in your head, but goals that you actually write down so you can make sure you hold yourself accountable. While it’s great to have short-term goals, it’s even more important to have more specific long-term goals.
A good example would be a growing family that wants to upgrade the size of their house. Instead of saying, “I want to buy a new home”, the family needs to be specific with their goal. How much money do they want to save each month? Where will this money be placed so they are not tempted to use it? When do they want to make their down payment?
Most people are too broad when it comes to making goals in their personal or professional lives. By writing specific, well-reasoned, and realistic goals, you can give yourself a clearer path to financial success.
Using high-interest debt.
One of the biggest financial mistakes you can make involves taking on high-interest debt. Whether you use your credit card for a cash advance or take a loan from a payday loan company, these forms of debt have enormous interest rates that can quickly get out of control if the debts are not repaid quickly.
The average payday loan is $375 . Though this money can offer short-term assistance, it is easy to quickly fall behind on payments when you consider the fees and rates tied to the loan. With smothering interest rates, debts can grow quickly, oftentimes requiring the borrower to take out another payday loan. The cycle can be financially devastating.
Making a purchase at retail price.
A huge mistake that many consumers make is paying full price for anything. There are hundreds of websites available that can help you make smart purchasing decisions.
Websites like Pricegrabber.com will allow you to compare the prices at different stores so that you know you are buying from the cheapest source. From there you can use websites like RetailMeNot.com to find a coupon code or printable coupon that will allow you to further lower the price. Lastly, you can use a cash-back website like Ebates.com so that you can earn additional money back on most online purchase.
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