Most common financial mistakes

Each of us makes financial mistakes. And then there’s that kind of people that tend to   repeat the same mistakes or constantly discovering new ones that more often than others. If you fall into that category, you might say to yourself that you are bummer, but then you are only deceiving yourself. The real truth is that you do not know how to manage the money and it is high time to learn.

You can learn how to avoid some of the common mistakes made in terms of money and finance.  We bring you some of the most common errors.

Taking loans in as many years

Nowadays, hardly anyone can afford to buy an apartment, house or car without the loan. The loan often seems like the best, most painless and fastest solution, but that is not the case. Bear in mind that that the loan must be repaid, and that is your responsibility does not end when you purchase the desired thing, but it ends when you actually repay the loan. You may not tangibly see how much money you actually lose, but that does not mean that this is still not happening. We often prefer to look to us installment as small as possible, even if it means more years. This is a critical mistake because, as long as you pay the loan, the more money you lose on interest. And when it comes to these big loans for houses and apartments, in the case of 30-year loan, it may happen that the total salary for two and a half times more than the asking price of your home.

Excessive use of the card

Make sure to keep the use of credit cards to a minimum of the minimum, because they “eat” the majority of the money. Buying everyday items on credit cards should be avoided. Use the debit card to pay for gasoline, groceries and other household goods. Select one credit card, preferably with lower interest rates and other get rid of. And in general, as long as you can avoid – do not put on a credit card.

Not checking your accounts

One of the biggest mistakes you can make is to not take care of your accounts and balances in the accounts. Take a look at the report from the account every month or every three months, to see a match on the numbers and costs. In today’s digital time, time card – we are very exposed to identity theft, various different traps at ATMs … Take care of the accounts, and the time you notice any irregularities.

Delay in buying a life insurance

As you age, your savings becomes an insurance policy. It is much better to provide it with 25 rather than 55 years. And even if now you feel healthy, you never know how life will play with you. Do not delay to buy life or health insurance.

Late retirement savings

When you are in your twenties and thirties, retirement seems so far in the future, and often you think that you do not have to worry about it. However, it is the best time to start with some kind of retirement savings. If you are 40, you are already behind. Start as early as possible and keep your goal is to separate at least 10 percent of income in savings. The later you start; the percentage that you want to save must be higher.

All tags