So you feel like you are doing everything right, but you still find yourself struggling to do anything more than live paycheck to paycheck. What can you do? What changes can be made to put you in a different financial position?
You may be surprised to learn that you are actually making some common mistakes with your money and there are some pretty simple ways to prevent them from happening. Check out these 6 Common Money Mistakes and How to Avoid Them:
Following the “keeping up with the Jones’ mentality”
It’s hard not to want your kids to have the top of the line everything so that they fit in with all of their friends. No one wants their kids to be the only one that doesn’t have the best stuff.
While there is nothing wrong with having these great things, there is something wrong with extending yourself to get them when you truly can’t afford it. There are ways to save on these “must-haves”, such as buying used or on clearance. Also, be sure to give it a little bit of time before rushing out to buy, time has a way of clearing your mind of the immediate desire and it also has a way of finding lower prices!
Buying groceries and household items on credit
When you are running toward the bottom of your budget, it is easy to convince yourself to use your credit card to pay for groceries and other household items in order to “save” money. The problem with this is that if you can’t pay your cards off at the end of the month, you are going to have to pay interest fees on this purchase which stretches your budget even further. Don’t be tempted to do this, rather live a little bit simpler when your budget is running thin.
Thinking that all good things must cost money
Many people think that in order for life to be great, you have to spend money. This isn’t true. Take your family on a hike or visit the nearest beach for the day. Wonderful family memories can be made and you didn’t have to pay out an arm and a leg. We recently visited my sister on vacation and took advantage of all the free hikes and things to do in her area. We only spent money on our "down" day when we went to see a movie and everything else was free!
Allowing “busy-ness” to overtake your life
When you are busy with work, kids and hectic schedules, it is easy to give up on saving money. When you are at your kids’ practices until late at night, a drive through restaurant sounds better than making dinner at home. Instead, fire up the crock pot in the morning and have dinner made when you get home. You will save a lot of money this way.
Paying your bills late
When you are on a tight budget, it is easy to convince yourself to wait to pay a bill. The problem with this is that while it may keep a little more money in your pocket right now, it actually takes away from your pocket in the long run because you are often assessed late fees. If you are late on utilities, they often charge a $5-$10 late fee (or even $20 in the case of some of our local bills like trash), but if you choose to put off paying a credit card, you will get hit with $25 or more in late fees.
Using store credit cards
Using credit cards is fine if you can pay them off right away. If you can’t pay them off right away, then the best option is to use a bank credit card as opposed to a store credit card where the interest is much higher.
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