4 – Mistakes You Do in Money Management

Do you really think money is an easy thing to handle? NO, it is the most flicker thing that has an unstable nature. It has left billionaires after giving them name and fame. Suddenly they went in the darkness of big financial fall. Even the world economy can be the victim. Forget not the huge international recession of 2008. For sure, we did some big mistakes, which made the whole world face the financial threat. If the big countries can fail to manage money matters, then your personal finances are quite small. You can make mistakes and they may become the weak points creating the loopholes in your financial system.

Money management is a vital part of your normal life because if you fail to manage the finances well, it can hurt you a lot. On the other hand, a proper management of finances add more joy and satisfaction that you are a financially stable person. In this blog, know about some mistakes that you may be doing in your money management. You can stay cautious next time about them and can make the ends meet easily.

Let’s start with one by one…

1. Not having a clear idea of where your money goes

Oh, it is a big bad habit. It is like insulting your hard-earned money. You cannot calculate something that you do not measure. If you do not know where all your money goes, you can never know why your month end suffocates with scarcity. It is a wrong thing to not to keep records of what is going on in your expenses. Income comes and you just start spending it. NO, this cannot work for long. Instead, either make an excel sheet on your laptop and just draw a table on your personal diary. List down all the expenses and then analyse where you should spend or where not.

2. Uncontrolled and irresponsible use of credit cards

Are you among those that take out credit card for every small transaction and have pending debts? Oh, you need to change your habit before things get worst. Mostly people face substantial financial problems due to careless attitude on this aspect. They forget the fact, that the credit cards are the added luxury to use when you actually need it. You cannot just take it out and use it for buying ‘any to every’ small thing. They should be used for big transactions and even if they use for just ‘anything’ then at least make the due repayment on time.

3. Taking many loans for varied purposes

Today, loans are available for every purpose. From super instant payday loan to short-term 1000 Pound loan and flexible personal loans, there are plenty of options. From buying a car to clothes, everything you can buy on instalments today. But taking too many loans adds the burden of multiple debts on your income. This can easily disturb the income-outgoing ratio. In fact, the regret of pending debts starts from such mistakes only. Control your desires and stop taking loans for everything. Moreover, you should first pay off the existing loans before taking the new one. Remember, it also affects your credit score, which ought to be an essential part of funding process.

4. Spendthrift attitude

You know very well what it means. In simple words, it is a wrong habit of spending more than what you need. The unfortunate thing is, initially it becomes your habit and then it turns into an addiction. You fail to even notice that you are spending in the wrong way and it should not happen. This is not the way you can manage money through your whole life. After all, future has its own cost and it claims for a due financial back-up. Career, age and other factors that change in the coming years are necessary to be backed with a certain amount. In case of any unpredictability, you cannot fight for long.

Just taking our discussion at the end…

Do not be a victim of these mistakes related to money management and get up before you fall. Financial matters are always fragile and you cannot afford to act careless, as their effects are adverse. Always make your plans and follow them with complete honesty. After all, if things go wrong you are the only victim to bear the loss. On the other hand, if financial life remains calm, you are the only one to consume the luxury of prosperity.

The thumb rule is to spend every penny with care and save for the future. Forget not to create an emergency budget and most importantly, miss not to add into it regularly. Add your family too in your planning and make them understand how hard it would be to earn money. Your one step can ensure smooth walking of further steps. And, you should manipulate over money, not let money to manipulate over you.

Description – Many mistakes that you do in money management disturbs the balance in personal finances. Avoid them and try to live a peaceful financial life.