Do you know you’re making these financial mistakes?
You might already know of the basic financial mistakes that most people make, but do you know what ours are? Managing finance is an important concept to master, not just for adults, but for young people too. If you struggle to manage your money then you could be at risk of troubles in the future. So, hopefully by informing you of the following mistakes that you could be making, you will be able to try and avoid them.
Paying for things you shouldn’t be
Perhaps you are paying for things you shouldn’t be because you don’t know that you can get it for free. Or maybe, you just feel like you’re better off paying for it. But, whether you are or you are not, you should always try to find out more. You never know, you might not be paying but there might be some hidden fees which hit you at the end of a certain time point.
Luckily for you, there are plenty of ways which allow you to buy new items for a discounted price. From brand new phones, all the way to vintage clothes, the internet has it all. There are plenty of websites which you can buy and sell your unwanted items at a cheaper price.
You can get discounts on everything and anything, from transport to restaurants. All it takes is a five-minute Google search and you’ll be sure to find something of use.
Ignoring the hidden fees
If something seems too good to be true, it probably is. When making purchases and finding deals you should always research and find out more about them, along with reading the small print.
An example of this is Shell, charges you for using your card. Shell keeps their gas prices higher because they have a branded credit card which people confuse for a loyalty card.
Not managing your money
Managing your money is something which we should all do. It doesn’t matter if you have weekly pocket money or a monthly wage, you should be careful when it comes to spending. For example, if you get to the shop as a teenager and you don’t have enough money for the thing you wanted because you didn’t manage your money, you will have to wait even longer to get it.
Similarly, as an adult with a family, you need to make sure you have enough money to pay for the essentials. If you aren’t managing your money in the right way, you might be finding this harder than it actually is.
Living paycheck to paycheck
Last year, a report suggested that nearly a quarter of UK adults have no savings to fall back on if times get tough.
Living paycheck-to-paycheck is something which you should be trying to avoid as it’s actually quite dangerous. If you’re using your entire paycheck in order to purchase essentials and pay bills, you’re running the risk of a serious financial ruin.
You ignore your credit score
If you have a good credit score, you put yourself in an advantaged positioned which could save you a lot of money in interest over the course of your life. If your score is high, lenders and brokers will trust you more, therefore this could lead to lower interest rates. This also links to things such as cars and homes. So swaying away from financial mistakes and getting on top of things you should know is one of the best things to do.
There are plenty of ways in which you can check your credit report online. We suggest you never pay for your credit score as you can get your hands on one free one every year. If you’re wanting to improve your credit score, click here.
Having no financial goals
When you talk to people about money and their financial goals, they tend to say ‘ I wish I had more money’ or something similar which implies it.
People tend to just save because it is the norm, but do they actually have any goals or an endpoint to their success? To reach them, you need to have a clear idea of what they are and a great reason as to why you want to achieve them to find yourself in a position of getting to the endpoint.
Whether they be a goal for the end of the month or in 50 years time, we should all have some sort of financial goals. It doesn’t even have to be a specific number, your goal could just be you wish to be able to afford your dream house or dream car. But as long as there is one there, you are more likely to achieve it.
You don’t care about your money
Whether you be one person who pays your bills and then spends the rest each month or the person who pays the bills and saves, you both need to change your management. A lot of people in today’s society go from one extreme to the other. Some people don’t care about it at all, and others obsess. We all need to find a balance right for ourselves.
Start with making a budget, tracking your expenses and educating yourself. This will set you off in the right direction, away from all the financial mistakes meaning you can just continue from there.