We hope to lead a fruitful life when it comes to money. But as you know, it can be challenging to stay in credit with so many things to pay for in the modern world. After all, rent and bills can soon add up to a staggering amount. And it can feel like we will never have any savings in the bank. But a lot of the time it can be down to errors we make which leave us in financial woe. And they are usually things which could have been avoided in the first place. Therefore, here are some common errors to avoid to keep your finances afloat.
Not checking your bank account for weeks
When was the last time you checked your bank? For a lot of us, we have to admit we haven’t logged on in weeks. After all, it’s so easy to just hand over your card and pay for items without thinking about how much you have in your account. But if you are not checking your account, it’s easy for you to get into financial trouble. After all, you could be in your overdraft with the debt racking up. And you won’t realize that you are paying fees as you are in debt. If you don’t sort it quickly, you will end up with bad credit which will affect you when buying a house or a car in the future! Also, if you are not checking your accounts, it could mean that you have money going out that shouldn’t be. For example, you might have accidently set up a direct debit with a company without realizing. Or you might have fraud payments coming out that need to be stopped. Therefore, to ensure you don’t get into financial woe, you need to make sure you check your bank account every other day. Log on and make sure everything looks good. And ensure you get statements regularly to your house for you to study. That way, you can see where you can make cutbacks to save money!
Starting several credit cards
It’s so tempting to get a credit card when we are short on money. After all, it can be so useful when booking things like holidays, or even paying out for a new vehicle. And if you pay off the card quickly after spending, it doesn’t have to be an issue. But a lot of people make the mistake of not stopping at one credit card. They often get another one which they can use when they have spent up on the other one. But soon it’s easy to lose control if you have several credit cards. After all, it can be impossible to keep up with all the payments. And then you can soon end up in financial worry. In fact, a lot of people have to resort to loans to pay off all their credit card payments. Therefore, to ensure this doesn’t happen, you need to try and keep credit cards to a minimum. Just stick to one that you can use to pay off things that you will be able to repay in a week or two. And even better, avoid them entirely to reduce your risk of getting into debt. Remember the same thing goes for store cards too. It can be tempting to open these when they offer you a good discount in store. But the more of these you get, the more your spending can get out of control. Therefore, refuse these cards and just buy clothes and tech when you have the funds to do so!
Lending money to so-called friends
A lot of people make an error when it comes to lending money to other people. They might do it to help them out if they are going through a hard time. While others tend to lend money in the hope to impress the person. Especially if it’s someone they have feelings for. And the borrower tends to promise to return the money as soon as they can. While good friends may return the funds ASAP, there are a few so-called friends who might never make the repayment. And it will not only ruin your friendship, but it can leave you in debt too. In fact, some people you lend money to can disappear off the face of the earth with your funds. And then you are left reeling as you have no way to get money back. In fact, some people have to resort to tracing agents in an attempt to find the person who owes the cash. Therefore, to ensure you don’t get into debt, make sure you keep your money to yourself. It’s alright to lend the odd tenner or even 20 quid to a friend or family member. But anything more, you need to refuse for the sake of your financial health. If they are a true friend, they will understand you don’t want to part with your cash. Otherwise, you should just remove them from your life as they are probably using you for funds!
Spending on non-essential
It’s so easy to go spending at the shops. After all, it’s fun to treat yourself occasionally to new clothes and jewelry. And you might love to buy gifts for other people in your life. But while the odd shopping trip is fine, you need to be careful that you are not spending too much on non-essentials all the time. After all, the receipts can soon rack up when you are out spending. And then you might not have funds for important things like car maintenance and house bills. In fact, a lot of people end up in debt due to their overspending. Therefore, to ensure you keep your finances afloat, you should make sure you clearly know how much you can afford to spend every month. That way, you can put money aside for bills and rent. And you will know how much you have remaining to use on treats. That way, you won’t spend too much on non-essentials that will end up leaving you in debt. And remember to always think twice before going to the till. After all, thinking about it properly can stop you making a poor decision buying an item!
Getting loans out you can’t really afford
When you see a beautiful new car or a piece of tech you really want, it can leave you feeling low if you don’t have the funds to buy it. But rather than accepting it’s something they can’t afford, a lot of people look into getting a loan to pay off the item. After all, it means they can pay for the item over months rather than in one go. But a lot of people end up getting into debt when they get out a loan. After all, they already have things like bills and rent to pay out for every month. So an additional large payment that goes out monthly might end up pushing you over the edge. And then people tend to get out another loan to pay off the original loan! Therefore, to ensure you don’t get into money woe, you should only get out loans that you can afford to pay back monthly. Think about all the bills you currently have going out and whether another one will be financially viable. If they are a good lender, they should check this with you too before agreeing to give you the loan. And make sure you are clear on the interest rate before you take out the loan. After all, you don’t want to find the payments suddenly go up and you can’t afford to pay them back! Also, check what the repayment fee is before getting out the loan. After all, you may be in a position where you want to pay it back in one go, and don’t want to be stopped from doing this!
Sticking with the same provider for ages
A lot of us make the vital error of using the same suppliers for bills for years on end. After all, it can feel like a hassle to change when we are used to getting bills from the same company every month. However, it could mean you are spending way more than you need to. Therefore, if you do compare providers, you could end up saving a ton of money on your bills. After all, they often have great deals for new customers which you can benefit from. And even if you don’t go with them, you can still call your current supplier and tell them about the deal you have been offered. They will hopefully reduce your bill and ensure your finances stay afloat in future!
And remember to always ask about pay rises after a period of time in a job. After all, it’s so easy for employers to take advantage by paying you the same amount every month. But to ensure you stay financially secure, you need to ask after 12 months to see if there is any possibility of a raise. That way, you can ensure you have more money in the bank!