For better or worse, money plays a major role in everyone’s life. But sometimes many people get caught up in financial mistakes that could hurt you in the long run if you’re not careful. But that doesn’t have to be your situation.
Here are the most common Financial Mistakes and how to avoid them:
- Not saving enough: The number one regret for people was not saving enough of their monthly income. Research shows that one out of five people hasn’t saved enough and 5% of them haven’t saved at all. Failing to save enough can make your life hard in many ways. So, a minimum of 15-20% of monthly income should be saved before starting to spend. I want to correct my financial mistakes
- Borrowing to spend: Nowadays, credit card usage has become a habit, and can lead you to a vicious debt cycle, where you are struggling to pay credit card bills instead of thinking about saving. Credit Card interest rate makes the price of the product substantially more expensive. Also, depending on credit can make you spend more than you earn. I want to correct my financial mistakes
- Waiting to Start Investing: Saving money was important, but keeping that savings in the bank’s savings account is not enough. If you do not get your money working for you, then you cannot stop working ever. These savings should be invested in a right investment avenue keeping life goals and risk appetite in mind.
I want to correct my financial mistakes
The choices that you make when you’re young have a major impact on your financial future. If you spend your twenties with no savings, paying for your credit cards, you’ll enter middle age with nothing but some crazy memories and a pile of debt.
But if you choose to balance out thoughtful spending with saving and investing, you can build happy memories and be financially stable at the same time.