Are You Prone to Making These Common Money Mistakes? Here’s How to Stop Today
Truth be told, we have all made a poor financial decision or two over the years. The silver lining is that these decisions offer an opportunity to learn, allowing us to manage our money much better in the future.
Despite making financial mistakes every now and then, the one thing we can all agree on is that most of them are preventable. We may have noticed this through our own experiences or through those of others, but we’re all in consensus, aren’t we?
Planning and Implementing
As is the case with everything else, all you need is a little bit of planning and the tenacity to implement everything your plan stipulates. This way, you are bound to be so good with money that you may amaze your former self.
Unfortunately, most Americans are knee-deep in debt, with medical debt being one of the reasons why most citizens go bankrupt. In addition to the ever-increasing cost of healthcare, people fall into this debt due to poor insurance and ignorance where payment options are concerned.
To avoid this, get yourself a job that comes with quality insurance as one of its perks. If this isn’t possible, plan for how you can independently have proper coverage, and also update yourself on payment options if you ever accumulate medical debt. Having said that, however, we must understand that due to the nature of some illnesses, you can run into debt despite having quality insurance.
All the same, don’t ever use your credit card to cover debt incurred due to medical services. Why so? Medical debt can be paid interest free and through reasonable installments, so why used a card that you’ll eventually have to pay for and with interest? That’s like unnecessarily increasing your expenses.
And while medical debt can catch you unawares, you have no excuse for being unprepared for your recurrent expenditure. The reason why you’re always short on cash is because you don’t have a budget, and if you have one, you hardly ever stick to it.
According to experts all around the world, a budget is the epicenter of an individual’s concrete monetary plans. If you’re yet to have one, now is the perfect time to come up with one. Of course, it has to be realistic, factoring in both your income and monthly expenses.
If you have one that you don’t stick to, find out the reason behind those impulsive shopping sprees and other extravagant habits. Is there anything stressing you? Does being a spendthrift fill an emotional void? Take yourself through a rigorous soul-searching process, and only then can you determine how best to move forward.
While a budget could be short-term, planning ahead should take the long-term approach. This is in terms of saving for college, retirement, and that emergency fund you’ve always thought of. Life as we know it can be largely unpredictable and there’s nothing we can do about that. If for whatever reason you’re out of a job tomorrow, how will you survive the next few months?
That’s where the emergency fund comes in. Experts recommend that your emergency savings account should comfortably support you for three months if you suddenly lose your source of income. You know now what you have to do, don’t you?
More in Financial Adviser
Hailey and Justin Surprise Fans with Matching Wedding Rings, And You Won’t Believe How Much They Cost!
In June 2018, Justin Bieber and Hailey Baldwin shocked the world when they reignited their romance, just weeks after the Canadian singer...October 23, 2022
Kelly’s Gloomy Financial Situation: One Bank Account Has a Reported -$13 Balance
‘90s kids would know who singer-songwriter R. Kelly is, he was extremely popular at the time, thanks to his undeniable talent...October 23, 2022
Kelly Clarkson’s Determination to Earning Money Is All the Motivation You Need Right Now
Before The Voice came out and took away a major part of its fan base, American Idol was the show that...October 23, 2022
7 Simple Ways To Get Rid Of Stress
Are you sometimes too stressed out to even think clearly and have no time for a therapy or to relax properly?...October 23, 2022
Celebrity Ventures That Surprised Everyone
Actors, writers, singers and TV stars are all famous in their world. On many occasions, they have ventured out into businesses...October 23, 2022
This Clever Plan Could Help Disney Dominate Netflix By 2020
In 2006, senior Disney executives predicted an enormous shift in the media industry. They predicted that the modern media would consist...October 22, 2022
David Beckham and Simon Fuller No Longer Business Partners! What Will Happen to the Beckham Brand?
More than two decades in doing what he does best, David Beckham announced that he was retiring from football at just...October 22, 2022
Jeff Bezos Might be a Multi-Billionaire, But He Refuses to Spend Because of This Surprising Reason
When you think about all that you would want to do if you had a billion dollars, we bet your list...October 22, 2022
Goodbye Cassini : Check Out The Grande Finale Of This 20-Year Space Journey
If you have been watching the news for the past couple of days, then you must have heard the name ‘Cassini’...October 22, 2022