If you are all about getting your dollars to go further, you may want to take a good hard look at your money habits. There’s a chance that you are making money mistakes which are effectively preventing you (or making it make unnecessarily harder) from reaching your financial goals. And what’s even worse is that you may not even realize that you are making them.
Are you guilty of these money mistakes?
Not including savings in your budget
If your goal is to reduce your debt load, you might find it difficult to sock money away in savings, when you could be putting it down on your cards.
What if emergency expenses arise? Wouldn’t you be better off to dip into your savings account, rather than racking your credit card up again, which means that you’re right back where you started? Accumulating savings is actually an important part of paying down debt.
Focusing on the sale, not what’s on sale
Scoring a good deal can be exciting (even euphoric for those ardent deal sniffers), but if the item in question isn’t on your need list, its money wasted.
Always be mindful of marketing. Buy 3! Get one free is a compelling offer, but if you only need one to start, you’re spending money you don’t have to.
Not taking an interest in your finances
Your eyes may glaze over at the mention of any/all financial matters, but you need to have vested interest in your finances.
Having an interest leads to being more knowledgeable. Being more knowledgeable helps you to understand your options to make good financial decisions that will benefit you the most.
Spending for points
Using a rewards program should help you extend your spending power, not cause you to accumulate debt or to make unnecessary purchases.
If you are likely to carry a balance from purchases on a reward card, chances are that interest will quickly reduce the “free” stuff you’re working towards.