3 Common Money Mistakes Everyone Makes

I will be the first to say that I’m not a money management expert. A lot of us learn how to manage our money through trial and error. I am one of them. But I’m going to share 3 money mistakes everyone makes, including me. 

Money Mistake #1

Living Beyond Your Means

Instant gratification is a hard thing to resist, especially when practically every place you go you have the option to buy it with a credit card. This money mistake will cause a vicious cycle of spending, debt, and stress. To avoid this mistake, create a realistic budget that outlines your income, expenses, & savings. Then do your best to stick to it. Live within your means by prioritizing needs over wants. To help, here are “5 Tips To Budget Money”.

Money Mistakes #2

Ignoring Debt

The mistake of ignoring debt doesn’t make it go away, rather it creates more problems. And if you only pay the minimum payments, the interest will take over. So make a plan. If you need more help, go to a professional, a debt consolidation agency. I did this personally, they can help you more efficiently in becoming debt-free. 

Money Mistake #3

Not Having an Emergency Fund

Life is unpredictable. At any moment, your car can break down, medical bills can add up, or you could lose your job. Not having an emergency fund could leave you stressed more than you already are. I know I’ve been told you should have at least 3–6 months worth of living expenses saved up. But sometimes that’s not realistic. Save what you can, try not to touch it & eventually it will add up. 

I’m sure there are many more money mistakes, but I’m only personally familiar with these three. By living within your means, having a debt payment plan, & having an emergency fund, you are taking steps to avoiding these money mistakes.