In order to stop being broke, get out of debt and make more money, there are money mistakes you need to stop making.
Money mistakes are the reason you simply cannot attain your financial goals.
You may have a lot of strategies in place, planning, money control methods, but at the end of the day, a simple mistake twarts all of your efforts and makes it look like you’re just a newbie with money and you can’t handle your finances, rather you are letting your finances handle you.
It is usually not easy sticking to an ideal money strategy especially those that can help you cut down your expenses to hasten your financial freedom.
Saving money is hard. It is one of the hardest habits you can keep, groom or continually stick to. But in order to make a proper “go” at your finances and finally get it right, you need to be mentally ready to overcome the challenges.
These are the top 3 Financial Mistakes You Need to Stop Making Now
1. Saving money when you still have debts to pay
Saving money while you still have debt to pay is not a good idea. You cannot save money while you have a high interest debt counting somewhere.
You need to focus and pay off your high-interest debt as soon as possible. It should be your number one money goal at any given point when battling a debt crisis.
2. Not being prepared for your expenses.
Your living costs can add up quickly, so it is very important to be aware of every monthly payment you are on, so you don’t end up spending more than you earn.
Spending money even before you earn is the fastest way to get into the debt and financial distress.
Ensure you have a habit of spending less than you earn so that you can save the rest for emergency purposes.
You can still enjoy yourself while keeping an effective budget. The 50/30/20 budget strategy can help you plan towards any financial expenses and help you manage your money.
3. Making a large purchase even before you’re ready.
Most people make the mistake of making large purchases even before they are ready.
Just because it’s a good idea or an investment strategy to own a home doesn’t mean that you’re ready to have one.
If you’re buying a home with a down payment and high interest rate, then you’re most likely not capable of owning one yet.
If you have to buy a car or house on credit or with a loan, you cannot afford a car/house yet. Are you even prepared for car or house maintenance? What of the house or car insurance?
Any huge purchase that you’re making without being able to pay outrightly or with quick down-payment installments, you’re probably not ready or not yet able to afford that thing.
Being true to yourself and casting away social pressure can help you save a lot of money and help you make the right money decisions that can quickly add up and help you gain financial freedom quicker.
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Buy a home or a car when you’re absolutely sure you can handle any costs that come with owning that property or item.