5 Money mistakes that you should stop making

There are many money mistakes that could be costing you and you may not even realize that you are making them. If you continue making the same financial errors, you could end up with a financial disaster. Take a close look at your finances, figure out which mistakes you’re making, and then ensure you avoid making them in the future. You may be surprised by just how many of the following mistakes you’re guilty of when you look closely.

Mistake #1 – Not Saving Money for the Future

One of the biggest mistakes that people make when it comes to money is not saving money for the future. While you are young, it is difficult to find money to put away for the future, with all the bills, student loans, and other financial responsibilities that you may have. However, you cannot put off saving money. The earlier you begin to save, the more money you will have when you retire. Saving can also help you to avoid borrowing money, since you’ll have money put away that you can use if an emergency arises.

Mistake #2 – Failing to Comparison Shop

Another of the money mistakes you need to avoid is failing to comparison shop. Many people think that it is easier to stay with the same company or brand that they have been using for some time. However, you can waste a lot of money if you don’t compare prices. Begin comparing on gas prices, mortgage rates, electricity costs, car insurance costs, and the cost of products you buy and you will begin saving big time.

READ  List of VISA card subtypes

Mistake #3 – Borrowing Money at Interest Rates that are High

Borrowing money at interest rates that are high can be a big financial disaster waiting to happen as well. If you have to go into debt, going with low interest rates is important. It is imperative that you avoid accruing debt that has interest rates of 15-30%, which can add up extremely fast. Once you get into this type of debt, it is hard to ever work your way out because of the high interest rates.

Mistake #4 – Spending on Impulse

You would be amazed at the money people spend on impulse, which is a huge mistake. When you are bored or hungry, you should avoid going out shopping. Otherwise you’ll spend a lot of money on things you don’t really need or even want. When you do go shopping, ensure you make lists, know what you need, and know what you should avoid. Avoid making fast purchases on big items. If you really need them, come back again the next day. Then you’ll avoid spending on an impulse, which can get expensive fast and lead to a lot of debt.

Mistake #5 – Allowing Sales Techniques to Dictate Your Spending

Last, allowing sales techniques to dictate spending is another of the common money mistakes people make. Companies are smart and they know just how to market to you, trying to get you to purchase items you don’t need. Just because an item is on sale doesn’t mean it is a good purchase. If you ever feel pressured to purchase something, leave the store. It will be there later if you really need it.