Five Money Mistakes you Must Avoid

Solution –Choices made today and habits adopted now could be your undoing in the near future and plunge you in a financial crisis you may not be able to pull out easily.

We have enlisted some of the mistakes people do that finally puts them at cross roads with their lives.

1• Using credit cards for everyday expenses – Though some theories prefer credit cards than cash, economists argue that using credit cards to cover the shortfalls in your spending could lead to spending of a lot of money. People tend to spend more money when they are paying with their credit.

Further it’s also easier to stop paying close attention to your budget when you constantly fall back on your credit card.

2• Borrowing money – When you are in a tight financial situation, you may be tempted to borrow money from your friends or your family. When you do this, you put a strain on your relationship with them.

They may suddenly need their money back at the time you are not ready. It’s a good rule of thumb to avoid loaning money to family or friends for this could affect your relationship. Also remember its not easy to face a friend or a relative for loaning.

3• Quitting your job without a plan – When you feel that your current employment situation is not good for you, you should begin looking for a new job and prevent any gaps in your employment experience.

You may even decide to take a pay cut for your new job, but you will be secure in knowing that you have a job and a paycheck coming in. Therefore don’t hurry to leave when you are not sure. This, however, doesn’t mean you should fear moving away. Some people say there will be never an appropriate time for anything

4• Not budgeting – many people fail o draft a budge/plan for their finances. When you do not have a budget, you do not have control of your finances. Failing to budget every month means that you are not taking control of your financial situation.

Also, without a budget, you can make decent money and remain poor the rest of your life. lt can be difficult to reach your financial goals when you do not have a solid budget in place. Take the time now to set up a budget. Don’t stop.

5• Not setting goals – Your financial goals gives you a guideline on what you want to achieve. Your goals should be achievable and timely. Remember SMART acronym. SMART goals in management stands for Specific, Measurable, Achievable, Relevant, and Time-bound. Without setting goals you may run around the entire field without any score.

The only solution to your life is having a goal or goals for your life. This makes your life easier to deal with.