There are three money mistakes that will get you into trouble every time, unless you get them under control. If you fall prey to these mistakes, they can impact your life for a very long time. They can even affect your quality of life. It is important to get them under control as soon as you suspect there may be a problem. These money mistakes a problem for millions of people in North America and around the world. Here they are:
We all tend to overspend at some point in the year. But if it is chronic overspending or if it is a large amount, chances are that it is on a credit card. Which you cannot pay off and then the high interest is going to be charged on the unpaid balance. That bargain item that you may have purchased on sale is quickly becoming a not so good bargain. When interest is added, it takes you a long time to pay for it. The savings you may have gained initially are quickly lost.
Not keep track of your expenses through the month is a sure way to overspend as well. If it is a surprise at the end of the month when your statement arrives, then this is a sure sign of spending out of control and overspending. Track your spending against a budget and if you do not have the money in your account then you probably should not spend it.
One spouse enabling another spouse or their partner is another money mistake that many people make. We want to please our partners and purchase items that please the other. However when it means that we overspend or spend money that we do not have, this can be considered enabling.
Helping each other spend money is one of the worst things we can do when it comes to making money mistakes. Neither person has any control. Very shortly you will end up owing a great deal of money and not know how to pay for it. Help each other reach control of the money you spend. Don’t make the mistake of thinking that the other person will look after it.
Another money mistake that many people make is denying that there is a problem. Not opening the letters with the bills in them and not looking at statements from the credit card company is a sure way to make a money mistake and get into trouble financially. Both partners should review the statements together and they should take responsibility for payment.
Avoiding the statement, ignoring the amounts that are owed are a sure way of ending up with bad credit and owing a great deal of money. Don’t wait until the debt collectors come after you to recognize the fact that you owe a lot of money.
For more details about managing your cash flow, click here.