17 Common Money Mistakes To Avoid in 2015/2016

Money is good to have, but have you ever wonder where all your money goes directly after payday in this hard economy 2016? Spending your money is way too easy. It is easy to the point that it makes saving it looks very hard! It is extremely easy to save money, but it isn’t something that happens over night, you have to take a turn at changing some of your behaviors to have money available as savings.

However, there are a few steps you can take to help you with the path to a successful financial success. You don’t need to be a mathematician to take a step forward or even take an hour to analyze your spending and income before you can create a budget.

You can start by sitting down and going over your bank statements, or have an app like money converters sort them out for you. Divide them up into sections, for example, fast food, bank expenses, bills, and so on.

When you actually look at what you spend and have a real money sum up on things, it will open your eyes. After you have seen where you spend your money, it would be best to set a budget plan.

To set a budget plan, you have to think about the amount you are spending and the amount you really make. Put money aside to deal with yourself and your well-being first. This should include expenses like your bills such as foods, utilities, and rents; and of course putting money aside in a retirement plan. From that point, make sure you give yourself rewards on the ground that, well, living frugally is not fun.

After you have put some money aside for your well-being, your fun money fund, and your savings, you have to make sure that you are thinking about your debts to income ratios.

Analyze all what you owe everyone; and the amount of time and money it will take to pay them back. A leading part of these debts could be credit card payments and student/bank loans. The sooner you pay them off the better it will look in your bank accounts.

On the other hand, do not pretend that the debt is not something that affects you, it affects everybody. So don’t put the bills inside a trash can when you receive it. Once you pay them off, call the debt collectors and close the accounts.

An open line of unpaid debts do not look great in the event that you are hoping to buy a house or take an auto loan from the bank in the future. Saving for the down payment or partial payments will be a lot easier.

While, you might be thinking that the Fun Money Fund (FMF) is a strange little thing, but have to let you know that it is necessary! You need to make saving less easier with your goal so that you will keep on doing it. You have lived off on allowance before for things that aren’t necessary (most of the time it is not more than N10, 000 – Naira here and there) and you can still do it as an adult.

Do you want your FMF to grow? Pay off a greater amount of your debts and you will have a little wriggle room to enjoy what’s left. Seventy five percent of that can be scheduled payment of unnecessary bills and services could be going to different areas of debts that should be paid off, and the other twenty five percent of it can go into your FMF.

In summary, you may be thinking, where would I be able to get the additional money to pay whatever that is left of my bills? The answer is cutting back your spending in your daily habits. Here are some common money mistakes people make every day. Check if any of them sound familiar to you?

1. You keep putting off paying your debts anytime you receive the bills.

2. You don’t have any savings or bank accounts for any emergencies.

3. You go shopping any time you feel like or hungry to spend money.

4. You enjoy frequent shopping to look good in the presence of others.

5. You don’t put pocket money aside for fun spending.

6. You don’t recognize the difference between your want vs. need. As a result, you never read the fine print before you buy.

7. You’re always on time to keep up with fashions and market trends. Thus, you consider going into debt for a Party.

8. You prefer to eat out instead of preparing the food at home.

9. You don’t have a plan before taking out a student loan. Also, you don’t think you need to have a budget

10.  You haven’t been paying attention to your debt to income ratios

11.  You buy items based on the price and not the quality

12.  You spend more money than you make or put away for savings.

13.  You want a bigger house than the space you need

14.  You are dependent on one source of income

15.  You never thought about saving for retirement

16.  You change things that aren’t out of order

17.  You’re not paying attention to how much credit cards you have and how much money you have to pay back.

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