Most Common Money Mistakes You Probably Are Making

Most Common Money Mistakes You Probably Are Making

Most Common Money Mistakes You Probably Are MakingSaving money isn’t something that comes naturally to most of us. Luckily, if you admit to the money mistakes you are  making, read the tips below and apply them to your life, you can stop this habit! Put an end to RECKLESS SPENDING today.

Scenarios for Reckless Spending

 The Store

So you think of everything you’re missing and everything you need, and decide now is the time to head to the store. You get there and pick up one of the items you needed, but you see a bin of clearance items! You have to look and of course you find something you just have to have, so you grab that item and continue shopping. You think to yourself, now you need something else to go with the item you just bought, and that just happens to be on sale too.  When you finally leave the store, you realize you spent way too much money.

Is this you? If it is don’t worry, you are not alone. This type of behavior is called impulse buying/ purchasing. This usually happens when you start making decisions using emotions instead of your critical reasoning skills.  You can put an end to this by first realizing when it’s happening. This is always the first step because if you don’t know you’re doing something, how can you prevent it? If something grabs your eye, wait a complete 24 hours before you even consider buying it.  Try figuring out how many hours you will have to work to pay for that one item. Consider how this item will make your life better. (We know it sounds intense, but it works.) And finally, if you just have to have it, be sure to find the best price for it before you buy it.


Out with Friends

Ahhhh. You’re finally off from work, and you get to let loose and relax with the people you consider your best friends. Your friends all want to try this new bar downtown, and who are you to suggest a night at home as an alternative? After all, you’ve worked hard today and they have too, a night out will not hurt anyone or anything. During the first hour at the bar, you spend all of the cash you had in your wallet and your friends don’t look like they are slowing down any time soon. So you pull out your ole trusty credit card, and order what you want. Your friends don’t know that you’re saving for that down payment you need in two months, so they encourage you to spend. You buy them all drinks and food!

Ever been here? Again, you are not alone. When out with friends sometimes you feel obligated to spend money. The truth is you really don’t! Suggest a get together at home, it’s okay. You can even leave your credit card at home. Recognize when you’re feeling pressured to spend, to avoid spending money you don't want to spend. 

And when you just have to pay with credit, remember that your minimum payment will typically be 3 percent to 4 percent of your total balance. Just making the minimum payments only extends the life of your debt and allows interest to pile up.  Here are some tips to handle your credit card payments too!

  •        Try paying your balance in full every month. We know sometimes this just isn’t realistic, so always have a plan to pay it off as quickly as possible.
  •        Avoid late fees and higher interest rates by paying on time.
  •        Pay attention to your interest rate. A lot of credit cards offer variable rates, which means the rate will change.