How To Avoid 2 Common Money Mistakes
Everyone handles their money differently, therefore make different money mistakes. The most common mistakes people make deal with overspending resulting in an overload of debt. Does that sound like you?
#1 – Out Of Control Spending
If you are going to rein-in your spending, do it after the holidays. Holidays tend to be emotional times for many people therefore the most difficult time to maintain good spending habits. Think about it, you see loved ones you haven’t seen in a while, you celebrate at restaurants maybe you normally avoid due to prices, you overspend on gift giving out of joy and happiness. All good things, but the temptation to overspend is everywhere and is a common money mistake.
#2 – Backwards Vs. Forwards On Debt Reduction
If you feel as if will never dig your way out of debt, you are definitely not alone. Carrying a small amount of debt is not bad, it turns into a bad situation when the debt grows out of control. The way you move forward with debt reduction is to first stop the bleeding. You do that by stopping the usage of your credit cards. Difficult to do, yes, but not impossible.
If you are serious about moving forward vs backwards on debt reduction you must start at the greatest source of the problem and for most people it is the use of credit cards. It is so easy to use a credit card; you don’t feel the financial pinch as much, that is until the bill comes due. But then most people bypass that financial pinch by just paying the minimum due. That starts another financial no-no…overpaying for items on account of credit card interest.
Some money mistakes are easy to make, some are easy to overlook. Before you can change anything you first need to recognize that there is a problem. Take the time to review your spending habits and debt load, you may learn that you are all good, or you may learn that you need to make a few adjustments.