The art is not in making money, but in keeping it. When it comes to money, mistakes are made every day. Mistakes turn into bad habits and bad habits eventually turn into a disaster. In order to stray away from making money mistakes, you must be willing to accept your mistakes and the mistakes of others and learn from them. Here are the top 5 money mistakes.

Emotional Spending

When we are struck with a situation that stirs our emotions, emotional spending is something many people are guilty of. Ever decided to shop because you were unhappy, or very happy? Emotional spending is real and can leave you in bad financial shape. Emotional spending can temporarily give you a boost in self-esteem, turn a bad mood into a good mood, relive stress, diffuse anger, ease boredom, and cure the blues, you must ask yourself, if it is worth it. This kind of temporary solution tends to lead to a dependency on emotional spending. The consequences of these impulses can take a financial toll on your bank account if you're not careful.

Not Having A Budget

Not having a budget is like not having a map or plan to your life. How will you ever know if you are truly living within your means if you do not have a budget? Without a budget, you will never be able to dissect and pinpoint where your money is leaking. Planning out a budget is not a difficult thing to do. Simply put, having no budget, equals large consequences. Good intentions are not good enough. If information is truly power, wouldn't you like to have power over your money by being informed where it is going and if you are living within your means? People who file for bankruptcy learn a lesson and have to start from scratch; this time around they use a budget.

Incurring Too Much Debt

If you're spending all your money paying interest on credit cards and installment debt, you won't have enough left for savings. When you buy on credit and don't pay the balance off at the end of the month, you end up paying much more for your purchases. A $1200 big-screen TV can end up costing you $2500, but you'll never know it because the true cost is hidden in your credit card payments. Pay cash and stay away from credit card debt if you want to accumulate wealth. Carrying debt is like sitting beneath your own sword of Damocles - it hangs by a hair, ready to fall at any moment. When you're burdened by debt, a single disaster can be enough to bury you. Don't tempt fate. Eliminate debt as soon as possible.

Being Out Of Touch

Letting your partner have total control of the finances can wreak havoc. If you don't know how much money you have, where key financial documents are stored or how to pay bills or taxes, you could be in for a rude surprise should you ever need to handle the finances on your own. Take part in your finances. Learn how to manage bills and don't shy away from financial duties. Keep track of how much you're earning, what your goals are, where your money's going, how much you're saving and any problems that may be rearing their heads. Losing touch of your financial situation is very risky and bound to problems down the road.

Lack of Goals

Building wealth isn't about how much money you earn each year, it's about how much money you don't spend. When you're just starting out, it's difficult to find money to save. But even a little is better than nothing. Create a goal of saving a percent of each paycheque for starters. Work to build an emergency fund. Lack of goals creates a "should have, could have, would have" financial situation that my frustrate you. Take baby steps and work towards larger goals. Eventually goal setting will become more of a habit and less of a burden.

1 Vote Created
luydimopso luydimopso 6 months ago

Bad financial management and bacteria have one thing in common - they flourish and mutate upon discovery. As soon as you realize you have committed bad money management, your error transforms itself into something else that looks too good to resist. financial mistakes to avoid right now

alyssa lauren 4 months ago

This was a really good article that gives an informative topic for you. Many people nevadas bill to prohibit firearms have no idea about how to handle money. If they have money, it will be gone soon. The topic you have shared here was really useful for such people and thanks for sharing the information here.

hendry jullius about 1 month ago

It is an interesting topic actually. Does anyone regret making money? Surely not. We have to be absolutely careful while taking each step towards achieving that objective. These tips are quite useful for any business or individual in making more revenue. Social Media Content Creator

Kaitlyn John at July 01, 2022 at 11:29pm EDT

Thanks for providing this idea of Top 5 Money Mistakes to Avoid. I think it's really helpful for people to avoid the regular mistakes that can be made while dealing with money and thanks a lot for sharing this interesting topic kinds of diamond cuts