Surely, you have done some of these things without knowing they are the quickest and the easiest ways to waste money.
1. Spending more than you earn.
Your income doesn’t fit with your lifestyle, and you are not doing anything about it. So, you should start saving, or that lifestyle will lead you to…
2. Getting into debt with loans.
You borrow money or pay for things in instalments that later you will have to pay with interest and commissions, making everything much more expensive.
3. Not saving.
You spend it all and you are on the brink of going bankrupt. You have to learn about the importance of having savings or creating a fund for the future or for emergencies.
4. Everyone knows how much you earn and how much you spend.
It’s not necessary to tell everyone what you do with your money. It exposes you and makes you vulnerable.
5. Letting you impulsiveness out to pick up the credit card.
Pretty clothes, a watch, that new iPhone… You’re using your credit card without even checking the inflow and outflow of money. And this rush of joy will turn into trouble next month. Instead, budget for a month and, if you have enough money, afford a small gift for yourself from time to time.
6. Refusing financial education.
Financial education helps you manage your money and get more out of it. Which brings us to the next point:
7. Paying someone to take your finances.
Unless you have large incomes and very little time to devote to your own finances, you should be able to take care of yourself. With a bit of financial education and a real interest in having control of your economy, you can manage to keep your accounts and also save money every month.