It's that time again... Yep, beauties, you guessed it--it's time for another budget post! For the latest budget check-in, we're talking about financial mistakes. We all make 'em, but financial mistakes always seem to add more unnecessary stress than anything else.
You might be aware of your own financial mistakes. You keep muttering to yourself, "Ugh, I should have never done that!" But hey, don't be so hard on yourself! Only very few people in this world are naturally money-savvy, and as for the rest of us, we just have to live and learn.
So you're probably thinking, "I know what she's going to say, 'No credit cards, pay off your debt, etc. etc.'" Well, I wanted to make this post a little less generic and a little more original. You might be guilty of some of these mistakes and not even be aware of it!
- Not creating a budget. Not too many adults actually have a budget. Simply making sure all of your bills are paid every month isn't a budget. A budget is a financial plan that encompasses all of your income and tracks where each dollar is going.
- Not treating your budget like you would treat a diet. Two of the most common New Year's resolutions are to lose weight and manage money better. Why? Because both tasks require a great deal of discipline. And just like dieting, when people make a mistake, they tend to give up altogether. Don't give up! Learn from that mistake, get back on the right track the next day, and move along. Learning to be financially savvy takes time, just like learning to eat healthy!
- Counting your chickens before they hatch (or spending money that you don't have yet). This is one of my shortfalls--I always count on money that I know I will be getting soon. For example, I bought a few new dresses for my upcoming birthday because I knew that I would be getting birthday money soon. Before I knew it, I had spent more money than I actually got for my birthday. The point is, if you don't actually have the money in your hands, you shouldn't spend it.
- Spending money on bad habits. You probably know that smoking costs a lot of money, but so does drinking coffee, and Starbucks isn't cheap! Chances are you can live without your morning latte, and you should definitely be nicotene free, too. Tanning is another unnecessary way to spend your money. Not only is it a health hazard, but you don't really need to be tan.