We are familiar with the quotation that we are what we repeatedly do, right? This means that humans are commonly referred to as creatures of habit. What we’re used to doing regularly, we’re bound to do repeatedly.
The good news is if the habits we’re used to doing are connected to promotion of a healthy financial status.
On the other hand, if our habits are preoccupied with committing the top five money mistakes, then that spells trouble for our pockets and bank accounts!
Recognizing these mistakes, therefore, should be a priority.
Exactly what are these top five money mistakes?
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| Making money mistakes is like burning your money away! (Image Source) |
1. Impulsive Spending
Personal finance gurus always remind us to “spend less than we earn”, but doing so is especially difficult when we have sales pitches and attractive commercials tempting us to spend our hard-earned money to frivolities that we don’t even care for. Add the convenience of a credit card with the attitude of instant self-gratification and we will all end up with a huge bad debt. One way that I have somehow curbed this personal impulsive spending is by calculating my hourly salary. For a detailed explanation, kindly go here.
2. Procrastinating Saving
It’s very easy to spend money while it’s very, very hard to save money usually because people relate saving money with neglecting themselves. This is SO FAR from the truth! When you save money for emergencies, this means you actually love yourself because you’ve thought about the future of yourself. One way to promote saving is to make a disaster board – try it here!
3. Forgetting Investing
Nowadays, saving long-term money in the bank is a big no-no! We can all invest in paper assets (stocks, bonds and mutual funds), businesses and real estate investments. Do you want to know how to get one million by investing? Click here~!
4. Neglecting Budgeting
I tackled this issue in a bit in my FREE E-BOOK. We can never be able to get a hold of our financial status if we never spend the time to budget. If you dread budgeting, think of it as producing a spending plan instead! For the four types of budgeting that can help you based on your personality, read more here.
5. Faulty Financial Thinking
If we feel that we’re “poor” and that we “never deserve anything in this world”, then we’re probably right! We are who we think we are, so better get started on thinking we’re independent and wise young professionals who actually know what they’re doing with their money. Of course, with thinking comes doing, though!
What’s your money mistake?
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