It seems like history really is doomed to repeat itself. There are certain money mistakes that we seem to make over and over again without even realising that they could be stopping us from getting on top of our finances.

Not having a plan for retirement

When you’re young and employed it can feel like retirement and pension plans are a lifetime away. But retirement can creep up on you a lot sooner than you expect, and the last thing you want to realise when this happens is that you haven’t saved for the future. If you neglect to make a plan you could find yourself facing serious financial consequences when the time comes. So, organise your pension plan early and add into it when you can to give yourself enough to live on comfortably after retirement.

Not having a rainy day fund

There are a lot of people still living paycheque to paycheque, only a flat tyre or burst boiler away from falling into debt. These are often the people that need payday loans the most to make sure that they don’t end up spending more than they have. This is why it’s important to have a rainy day fund and to keep adding to it. You never know when an unexpected bill is going to come your way and the best way to deal with one is to have some money already put aside to pay for it. This way you can stay out of debt and have the problem solved right away.

Not having a monthly budget

Are you the sort of person that just spends money on what you need when you need it? Then you’re like a lot of people that still haven’t started budgeting. Budgeting is the best way to keep on top of your bills and prevent accidental overspending that many of us are guilty of doing. With a budget you know exactly how much money is going where, which means that you have a better idea of how much money you can spend on luxuries and fun things. When you have a budget you stand the best chance of keeping out of debt.

Giving in to deals and discounts

We all can get suckered in by a good deal every now and then, but do you really know how much you’re saving? Even when you’re buying things on sale you’re still spending money – money you perhaps wouldn’t have spent otherwise. Don’t always get drawn in by ‘potential’ savings and start thinking more about what you’re actually saving. There’s a right way and a wrong way to take advantage of discounts, so make sure you’re not giving in to the tempting offers and spending what you shouldn’t.

Not considering run-on expenses

There are quite a few substantial and sometimes necessary expenses that we find difficult to see as long-term expenses. We see the big numbers in the initial cost, but not the small numbers that trail after it. This includes interest, taxes, maintenance and repairs, and any other expenses that might come after we have already made a commitment. College and university students in particular are the ones that often make this mistake. They might take out a student loan and only see the general sum rather than the interest they will be collecting on it the longer it takes to pay it back. This is why we at LoanPig always think carefully about the loans we offer people and have a Loan Calculator to show you how interest will affect your loan before you apply for it. While you might be able to afford to pay back the general sum, the interest that is added to it can sneak up on you if you’re not prepared for it. Before you make a big financial commitment, think carefully about all of the additional costs and run-on expenses that might come with it. That way, you will be sure not to commit to something that will drain your future savings.

Not getting out of debt fast enough

While optimism is something to be treasured, when it comes to debt optimism might end up making things worse. There are a lot of us that see a small amount of debt as nothing to worry about, but it’s this kind of attitude that enables us to keep racking up debt until it’s eventually too much to handle. Don’t let debt build up. Pay off debt as soon as possible while you can avoid it and commit to saving until it’s paid off.