Are You Prone to Making These Common Money Mistakes? Here’s How to Stop Today
Truth be told, we have all made a poor financial decision or two over the years. The silver lining is that these decisions offer an opportunity to learn, allowing us to manage our money much better in the future.
Despite making financial mistakes every now and then, the one thing we can all agree on is that most of them are preventable. We may have noticed this through our own experiences or through those of others, but we’re all in consensus, aren’t we?
Planning and Implementing
As is the case with everything else, all you need is a little bit of planning and the tenacity to implement everything your plan stipulates. This way, you are bound to be so good with money that you may amaze your former self.
Unfortunately, most Americans are knee-deep in debt, with medical debt being one of the reasons why most citizens go bankrupt. In addition to the ever-increasing cost of healthcare, people fall into this debt due to poor insurance and ignorance where payment options are concerned.
To avoid this, get yourself a job that comes with quality insurance as one of its perks. If this isn’t possible, plan for how you can independently have proper coverage, and also update yourself on payment options if you ever accumulate medical debt. Having said that, however, we must understand that due to the nature of some illnesses, you can run into debt despite having quality insurance.
All the same, don’t ever use your credit card to cover debt incurred due to medical services. Why so? Medical debt can be paid interest free and through reasonable installments, so why used a card that you’ll eventually have to pay for and with interest? That’s like unnecessarily increasing your expenses.
Zero Excuses
And while medical debt can catch you unawares, you have no excuse for being unprepared for your recurrent expenditure. The reason why you’re always short on cash is because you don’t have a budget, and if you have one, you hardly ever stick to it.
According to experts all around the world, a budget is the epicenter of an individual’s concrete monetary plans. If you’re yet to have one, now is the perfect time to come up with one. Of course, it has to be realistic, factoring in both your income and monthly expenses.
If you have one that you don’t stick to, find out the reason behind those impulsive shopping sprees and other extravagant habits. Is there anything stressing you? Does being a spendthrift fill an emotional void? Take yourself through a rigorous soul-searching process, and only then can you determine how best to move forward.
While a budget could be short-term, planning ahead should take the long-term approach. This is in terms of saving for college, retirement, and that emergency fund you’ve always thought of. Life as we know it can be largely unpredictable and there’s nothing we can do about that. If for whatever reason you’re out of a job tomorrow, how will you survive the next few months?
That’s where the emergency fund comes in. Experts recommend that your emergency savings account should comfortably support you for three months if you suddenly lose your source of income. You know now what you have to do, don’t you?
More in Financial Adviser
-
How Sound Baths Can Soothe Your Mind, Body and Soul
Have you ever been so caught up in a song that you felt the world melt away? Music, in its many...
November 18, 2023 -
What to Know Before Rebalancing Your Investment Portfolio
Managing an investment portfolio is akin to steering a ship through ever-changing waters. Periodic adjustments are necessary to ensure you stay...
November 11, 2023 -
Jeff Bezos and Fiancée Lauren Sánchez’s Extravagant $500 Million Superyacht
Get ready to set sail on a journey into the opulent world of Amazon founder Jeff Bezos and his fiancée Lauren...
October 31, 2023 -
How to File Your Taxes: A Comprehensive Guide
Filing your taxes can be daunting, but with the right knowledge and preparation, it doesn’t have to be overwhelming. Taxes are...
October 26, 2023 -
Make Your Kids Mini Master Chefs | Here’s How
For many of us, the kitchen is the heart of our homes – a place where magic happens, one dish at...
October 19, 2023 -
Deciphering Stock Market Sell Signals
In the fast-paced world of stock trading, understanding when to sell your investments is just as crucial as knowing when to...
October 12, 2023 -
Why the U.K. Is Now the Supercar Capital of the World
Often, when we think of the United Kingdom, images of double-decker buses, regal palaces, and afternoon tea come to mind. Supercars,...
October 7, 2023 -
U.S. Credit Card Debt Hits a Record $1 Trillion: What’s the Fix?
Recent data reveals that Americans’ credit card debt has reached a whopping $1 trillion, surpassing the previous record high in the...
September 26, 2023 -
Looking to Move to a New City? Pick These Most Liveable Cities
Making the decision to move to a new city can be an exciting and overwhelming adventure. Whether you are moving for...
September 22, 2023
You must be logged in to post a comment Login