Everybody makes mistakes with their money. The Important thing is to keep them to a minimum. One of the best ways to accomplish that is to learn from the mistakes of others. There is a long list of things that we can make with our money, and what we can do to avoid them…Here are the top 5 things…next week there will be 5 more things to round out the “TOP 10 Common Money Mistakes”.

1. BUYING ITEMS YOU DON’T NEED: every time you have an urge to do a little “impulse buying” and your credit card but don’t pay in full by the due date, you could be paying interest on that purchase for months or even years to come. Research major purchases and comparison shop and ask yourself “do I really need this?”

2. GETTING TOO DEEPLY IN DEBT: being able to borrow allows us to buy clothes or computers, take a vacation, or even purchase a home or a car. However, taking on to much debt can be a problem, and each year millions of us find ourselves struggling to pay loans, credit cards, and other bills. Learn to recognize the warning signs of a serious debt problem. These may be (but not limited to) borrowing money to make payments on loans you already have, paying bills late, and putting off doctors visits or other important obligations because you don’t have enough money.

3. PAYING BILLS LATE: Credit bureaus prepare credit reports for use by lenders, employers, insurance companies, even landlords and anyone else who needs to know your financial reliability based largely on your track record of paying bills and debts. While one or two late payments on your loans or other regular commitments (such as rent or phone bills) over a long period may not seriously damage your credit record, (even though these go on it) making a habit of it will count against you.

4. HAVING TOO MANY CREDIT CARDS: 2 or 4 credit cards, including those from department stores, oil companies, and other retailers, is the right number for most adults. Why not more? The more credit card you carry, the more inclined you are to use them for impulse purchases. If you have no credit on the other hand…GET SOME…apply for a “secured credit” card at a credit union or nationally known bank. Credit is your lifeline in the United States of America…Good credit is your bloodline.

5. NOT WATCHING YOUR EXPENSES: it is very easy to overspend in some areas and take away from others…including your long-term savings goals. Try organizing and tracking your spending each month…this will enable you to set and stick to limits you consider appropriate.

5 more to come next week…
 

have the courage to question & challenge the status quo... refuse to accept "traditional" thinking and answers as fact....
~Kimlee