Learning From Other People’s Money Mistakes
It’s the proverbial, you don’t have to swim to fetch a glass of water! Which basically just means, you don’t have to take risks or make mistakes just so you can learn something new. Spare yourself from making mistakes by drawing wisdom from the experience of others.
Here are 3 Money Mistakes you can learn from—the easy way!
One of the most common money mistakes out there! The kind of money mistake that if it goes out of hand you can get into some real trouble. Here are a few ways you can avoid making this money mistake.
There are a few things to consider. For example, do you have the tendency to overspend? Are you ready for the responsibility of promptly paying for your credit card bill in full every month? Meditate on your decision, don’t just get one on a whim. Getting a credit card when you’re not in the right financial headspace or disposition is risky.
It’s totally okay to own a credit card but if you don’t think you’re not disciplined enough with yourself, best to just get a debit card instead. With a debit card, you’ll be living within your own means and you’ll be able to avoid overspending.
The best practices are to:
Always pay your credit card bill in full to avoid being charged with interest! We know it’s appealing to only pay the minimum amount due but ultimately the interest will pile up and you’ll end up having to pay so much more than you’ve bargained for.
If you can’t pay your bill in full every month, stop using your credit card until your bill is fully paid off.
Only use your credit card on purchases you know you can pay in full when your bill arrives.
Extra tip: When you get your credit card bill, analyze your spending habits. Reflect on your purchases and pinpoint which ones were unnecessary and wasteful. Knowing yourself this way can help you make better choices moving forward.
The pitfall of wanting to “get-rich-quick” is that it’s not a sustainable mindset to have. There’s a difference between being filthy rich to being financially free. Trust me, you want the latter. Being financially free brings more fulfillment, stability, and peace into your life. While the flipside of getting rich quickly is that you’ll also lose your money fast. Work towards financial freedom instead of subscribing to get-rich-quick schemes!
Financial freedom begins with your foundations! Solidify them first and build your wealth slowly but surely. For your reference, here’s a checklist of the essentials to a solid foundation.
If you need expert guidance on your foundations, book a free discovery call with us, and let’s talk about solidifying your foundations with a financial plan!
A simple rookie mistake that is easy to correct! Don’t you fret. All you need to do is to make sure that the NEXT time you get your paycheck, you save a certain amount of your income first before you spend on anything. It’s a simple solution. If you don’t address this problem early on you will be vulnerable to a life of living from paycheck to paycheck.
It also helps to have a budget breakdown of your monthly income. Here’s a standard breakdown using the 50/30/20 Budget Rule.
Of course, when it comes to budgeting, one size doesn’t fit all. Find a system that works for you and your lifestyle!
We get it, getting a financial plan is a big commitment. Right now, all you need is for someone to answer your urgent questions about personal finance. With Simple Solutions, we can consult you on your immediate needs by quickly connecting you to a financial planner
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