We’re all guilty of making money management mistakes. The first steps towards fixing the mistakes is acknowledging them so that we can change our life for the better.
Money management isn’t and doesn’t have to be complicated.
In this article, we will point out some of the most common mistakes that you should stop doing when it comes to your finances.
You Pay The Bills Late
This is such an easy mistake to make, and one that you probably think will not hurt your finances too much.
But the truth is, by paying your bills late, you will spend way more money on them because of penalties.
You can stop making this mistake by automating your bill payments every month.
You Don’t Know Where Your Money Goes
If we were to ask you how much you’re spending every month and your expenses list, you would probably give us a brief and rough approximation off the top of your head.
The chances are that you don’t know for sure where your money goes and this causes you money management issues.
If you would start keeping track of your expenses and bills, we’re positive that you will be surprised on some of the payments you make.
You can use an app, such as CashControl, to manage your money and keep a detailed history.
You Spend More Than You Need To
Once you have a clear idea of where your money goes, you will be able to reduce your expenses.
Perhaps you will find out that you’re paying for memberships and subscriptions you don’t actually use, so it’s best to put a stop to them.
Or you’re buying things you don’t need, such as another TV, more clothes, or random stuff for your home that don’t prove to be a necessity.
Doing small budget changes will add up over time.
You Use Your Credit Card For Daily Expenses
When you’re tight on money, it’s incredibly easy to use your credit card and pay for purchases.
One purchase can grow to ten purchases in the blink of an eye, and by the time you know it, your credit card balance will be hard to pay off in full.
This can also lead to potentially damaging your credit card score. A low credit score will affect you in case you would want to take a loan at some point, and it can even stop you from qualifying for one at all.
You Don’t Have An Emergency Fund
Things can go downhill anytime, and you have to be ready.
Your pet may need an emergency vet visit. Your car may break down. Your house may need some maintenance you weren’t aware of.
You can cover all of these unexpected expenses with your emergency fund. The problem is that when you don’t have one, you may find yourself using the credit card. As we’ve seen earlier, this is a big no-no.
It’s All About Making Smarter Decisions
We’re not perfect, especially when it comes to making money decisions. But the first step has already been made if we can acknowledge our money management mistakes.
If you want to learn more about how to save money, then we recommend trying out CashControl.
The app will help you track in real time all your expenses and bills, and you will soon be on your way towards making smarter decisions for your future.