Whether you are in your 20s, 30s, or 40s it’s neither too soon nor too late to put your hands on these money mistakes, to overcome and move on from them.
You’re the only one responsible for building a solid foundation for your future. Take the right steps and decisions now & avoid losing more money by steering away from these things:
1- Living Beyond Your Means
Spending too much from time to time might give you that instant gratification, but it’s not a way you can live by. It usually leaves you feeling low in the long run because by doing so, you pile up many financial burdens that you can’t seem to make up for.
Having friends who are in better financial situations than yours can be pretty pressuring, you find yourself trying desperately to keep up with their spending and lifestyle.
It’s a “money mistake” to be tempted to spend what you don’t have.
Cut entertainment costs to half or find new affordable activities like going to the park, fishing, camping, or watching movies. These things are cheap & fun at the same time.
Suggest those activities to your friends instead of just going for what they want. Try explaining your situation to them and they should understand if they are good friends.
2- The Debt Trap Money Mistake
At first, it sounds alluring to take some money from a friend or family member when you are in need, sometimes friends suggest lending you money when you’re broke; just to go out with them to have fun. But time after time you’ll find yourself helplessly drowning in debt & unable to do much about it.
Remind yourself that you’re the only one responsible for your money issues and that if you don’t want to miss out on fun times, you must earn it first with managing your finances wisely.
3- Making the Mistake of Ignoring Your Retirement Fund
For some reason, young people tend to think & act as if their health is going to stick around forever, while we all know this is not true, we don’t want you to be overthinking or obsessing over your health. But still, we must -at one point- face the fact that health will inevitably deteriorate with age, and that’s just one of the reasons we must not forget about saving for our later days.
Save your future-self by saving money, even if you start by a small sum every month, don’t underestimate the power of piling up smaller amounts of money.
4- Skipping Putting Money in an Emergency Fund
Sorry to break it to you but unexpected expenses are always going to be around for you, and it can get stressful when you don’t have enough money.
That’s why you need to set up an emergency fund for unexpected circumstances, like fixing your car, going under surgery or any health care expenses, pet emergency, house repairs, or travel.
5- Thinking That You’re Going to be Rich in the Future
Do you picture yourself owning a fortune in the future? What makes you so sure about this?
Your future self is made of the present you, don’t romanticize your life or fantasize about the future without putting in the work that would put you there
If you want your future self to take care of everything, that means “current you” needs to start building the right habits. Try to avoid all these money mistakes we’ve listed!
Don’t spend every penny you earn and put a solid financial plan utilizing all previous points. Enjoy your life fully, but don’t lose all your money, and remember: “Expect the best. Prepare for the worst. Capitalize on what comes.” – Zig Ziglar