Four personal finance mistakes to watch out for

[Shaf]

Managing money is very important if you want to live a comfortable life in the long run, financially.
Many people don't know how to do that though, and thus they make personal finance mistakes that may not seem significant but have great impact on their financial situation.

I've seen people make these four mistakes and I believe they have great impact.

1. Spending money frivolously.
There are some expenses that may seem insignificant, but these gradually add up and consume a lit of money. Assuming you buy a cup of coffee at $25 or more each day, that's a total of $630 each month. If you're on a tight budget, that's something that can affect your finances.

2. Sometimes, we get used to buying things on credit and do so consistently, each month or week. This is very common among salary earners and it just build up a backlog of debts for you which won't allow you save any money.

3. Spending to impress others.
If you want to have good person finance skills, spending money on things that you don't need just to impress others should be the last thing on your mind.

4. Not having a plan.
It may seem obvious, but unless you have a plan for your income even before getting it or immediately you get paid, you will definitely find yourself spending money in unnecessary things. Plan and remove anything that doesn't contribute positively to your finances.

 

[btaliat]

There are so many business owners that have failed in their pursuit just because they are not careful while pursuing their business. A business man should always have the foresight on some problems that may likely to happen. And he needs to have made some provisions in order to get these problems. Some of the common business include

Competition: there is no doubt that there will be competition in business. It is not possible for a business to enjoy full monopoly for Long. The mistake that some business men make is that they don't always plan ahead on how to get the issue of competition solved. There are many ways this can be done. And a good and foresight business owner must have planned ahead on how this can be done.

Not keeping records: most people don't keep record on how their daily transactions go. They don't have the record or keep proper record of their daily transactions. This won't let them know whether they are making progress or not. Nit only for this reason, no financial institution will take them serious if they want to borrow money.

Spending lavishly as the poster has said is another reason that can make a business sinks .

 

[Ayuba Ernest]

There are a lot of things to keep track of when it comes to managing your finances, and it can be easy to make a mistake. Here are four personal finance mistakes to watch out for:

1. Not tracking your spending. It's important to know where your money is going each month. Otherwise, you may find yourself spending more than you can afford.

2. Not setting a budget. A budget can help you keep track of your spending and ensure that you're not spending more than you can afford.

3. Not saving for retirement. Retirement may seem like a long way off, but it's important to start saving for it now. Otherwise, you may not have enough money to cover your costs in retirement.

4. Not having an emergency fund. An emergency fund can help you cover unexpected costs, such as a medical bill or a car repair. Without one, you may have to put these costs on a credit card, which can add up quickly.

Making even one of these personal finance mistakes can have a big impact on your finances. So be sure to avoid them if you can.

 

[robertalan1958]

4 Biggest Personal Financial MIstakes

1 Not having a plan

You must have a plan for your money otherwise you will just simply fritter it away and have nothing to show for it. Your plan needs to include making provisions for your retirement by joining your country's retirement scheme.

2 Borrowing for consumables

Purchasing consumables with borrowed money is dumb debt. Don't do it! It is a major cause of financial strife.The reason wwhy it is dumb debt is because the item loses it's value once you take possession of it. If you don't have the money for it DON'T BUY IT!

3 Not Investing

Just leaving your savings in the bank at pitiful interest rates is dumb! You have to learn how to be an investor to make the most out of your money.

4 Listening to the wrong people

You will not learn how to become financially literate by spending all your time with financially illiterate people. Your local library or bookshop will have good books on finance which will help increase your financial literacy.