Guest Post by Sachin
Have you ever wondered why you feel like you’re bad with money or when it comes to money you feel like losing the race? Well, it might be because you are practicing some common Financial Mistakes that are putting in bad economic conditions.
So, in this article, we are putting in front of you the 7 Most Common Financial Mistakes that you should probably know, and definitely shouldn’t do.
1. Having No Budget
Here’s the first of the financial mistakes you need to avoid. If you are without a budget then you are without proper financial knowledge. Budgeting is the first step towards managing your finances as well as keep track of your spending. Knowing where your money is going provides you a chance to track it and avoid its wastage.
Creating a budget is not an easy task that’s why so many people end up making Budgeting Mistakes that harms them in the long run. So, it is advisable to create a budget carefully every month.
2. Not Paying Bills on Time
Being regular and up to date with your bills is a good habit. But if you lack this habit chances you are facing some serious money problems. Paying your bills late not only puts yourself in the penalty but also ends up creating more and more debt.
Paying Bills late also affects your credit score as it lowers the credit score. So quit these bad habits of your now and start paying your bills on time and fully. A way you can combat this is by automating your finances so that your bills are always on time without having to think about it.
3. Having Only One Source of Income
So, you totally rely on a single source of income? What if you lost that source or you lost your job, how do you carry your life financially? People usually commit this mistake to play it safe and for their whole life they become slaves to money. If it sounds like you then my friend it’s time to buckle and do some financial planning.
Creating multiple sources of income not only provides you with greater cash flow but also allows you to master your money. And by then you no longer have to be a slave of money. So, focus on creating more and more sources of income and become financially free.
4. Using Your Credit Card Too Much
So, you are using your credit card even for the smallest purchase you make. Then, my friend, it’s high time to sit back and analyze yourself as it is going to be a big threat to your finances. Maxing out your credit card or using too much of it increases its Credit Utilization Ratio which in turn lowers the Credit Score.
A lower Credit Score can harm your money in some epic ways like creating a problem in getting loans or high-interest rates which I am sure you wouldn’t like.
5. Spending As if there is no Tomorrow
Spending money like crazy might sounds good and even seem good but only in movies. If you are spending your money like there is no future, buying everything your eyes see or tongue tastes, you soon end up yourself with a long list of debts to pay, and by that time you don’t have money to pay.
Understanding money is important to mastering your finance. Don’t become the slave of your money it might get harder for you. Control your spending and keep track of them to avoid any near future financial crisis.
6. Having No Emergency Fund
An emergency is not definite, it can happen to anybody and anytime. And some of them end up leaving creating a huge financial loss to cover. Emergency funds not only help you tackle the situation both mentally and financially.
If you don’t have something, we call emergency funds that might be a point of concern. If you want to get ahead financially in life emergency funds should be your priority as it can save you from lots and lots of financial crises in the future.
7. Fear Of Investing
There are so many people and you might be one of them who fears the idea of investing. They thought it be riskier and maybe that’s why never invest their money.
Investing your money is the best way to grow your money. It’s the best way to make thousands into millions plus it provides you a lifelong flow of passive income. It is one of the most important assets of a millionaire.
Leave your fear behind or fight with it and start investing, it’s the best way to master your money and become financially independent for so many generations.
It’s never too late if you decided to bounce back and master your money. All you need is a little control over yourself and your money. By avoiding the given financial mistakes above you not only become better with your money but also make money work for you.
Thank you So Much
Sachin Singh Rajput
The Absolute Money
Guest Post Author
I am a graduate student and a keen learner. And to be very honest money is my favorite subject. I am always open to share my thoughts on how you can master your finances and become better with money. Join Me and My Blogs on TheAbsoluteMoney.com