Money is one thing very one works to have and use for daily expenses, everyone uses money. We all want it, work for it and think about it. While the creation and growth of money seems somewhat intangible, money is the way we get the things we need and desire. The task of defining what money is, where it comes from and what it’s worth belongs to those who dedicate themselves to the discipline.
Just as mistakes are inevitable in other aspects of life, that how money mistakes is inevitable in building and managing personal finances because something we may not make the best decisions, do right investment or purchase the right product.
We all have shortcomings when it comes to managing finances. Identify your underlying money management mistakes ditch less effective financial habits and take control of your future.
Here are common money mistakes that effect and reduce your financial growth;
- Reckless spending: Do you spend money on things that don’t matter to you? It’s easier to make purchases that align with your priorities when you determine your life values and set financial goals. Uncover what you cherish most to make wise financial decisions that align with your core values.
- Absence of plans; just like the old saying which says “he who fail to plan to fail” if you don’t have standard plan and paperwork on how to spend your money then you will soon run dry. You can easily control these type of mistake by making time to get organized. Stay on top of your finances so you are aware of important information about your accounts and know when payments are due. Actively manage your finances to avoid unnecessary late fees and additional interest charges.
- Poor savings; develop the mindset of saving certain percentage of your income monthly because savings ensure you are covered in the event of a financial emergency and allow you to purchase that next big-ticket item without increasing your debt.therefore try as much as possible to avoid poor savings.
- Wasting money on minimum payment; spend reckless on minimum bill payment is another big money mistake. For instance money used in recharging your cellphone provided, your cable bill and another small utilities.