Everyone makes mistakes, especially in the world of finance. In this article I will tell you about the most common (10).
Spend all your money without saving for the future.
Many people (most of them are teenagers) do not know, how to manage their expenses and, obviously, they spend all their money at once, without leaving for later.
People overestimate their capabilities and take a loan for a huge amount of money. Monthly payment should not exceed 20-30% of your income, otherwise it will be extremely difficult to repay it.
Borrowing is a very bad habit, because it’s obvious, that you will not return money to the right time. Thus you will ruin your relationship with friends and lost any desire to earn more.
Live without a plan.
A lot of people just waste their money on unnecessary things. They have no idea, how to manage the budget. Everyone should be able to distribute income and have a clear expenditure plan, otherwise the huge amount of money will be spent.
How I said above, borrowing money is a financial mistake, but also a financial mistake is to lend money. The system is the same like with borrowing. But now people don’t return money to you at the right time.
When you just start to understand investments, most likely, that you will lose a lot of money, because of your inexperience. Your head will be full of questions. Who is best to trust money? How much do I have to pay?Respectively, you don’t know, what the result you will have to expect.
Neglect of insurance.
Health problem is a common cause of unexpected expenses. If you do not have insurance, then medication and the treatment itself will cost a lot.
Is retirement close?
A very painful issue is pension, if be accurate, its amount. This is because of the fact, that people take thought about its size when the retirement age is already here.
Inattention to taxes.
Not many people know, that some types of tax deductions can be turned in their favor. At first glance, it’s a trifle. However, from each such a trifle you will accumulate the good amount of money.
Keep money at home.
There is a mistake is to keep money at home, instead of the bank. If you deposit money into the bank account, interest will be credited to you, but at home you won’t get any interest and, most likely, you will want to spend it as soon as possible.
These were Top 10 Most Common Financial Mistakes. I hope, that you will take it to the fact and fix it.