You don’t have to be up to your ears in debt to have made money mistakes. We all make them. Here I’m going to tell you about the most common ones and then if you want to share yours – we’d love to hear from you so we can learn from your mistakes!
- Only making the minimum payment on a credit card – it will take a lot longer to clear off and you will end up paying a lot more in interest.
- Getting an interest free mortgage. Yes that will make your payments more affordable now, but in 30 years at the end of the term, you will have nothing to show for it and may not even have the capital required to pay off the value of the property.
- Not checking your bank statement. I used to be guilty of this. I buried my head in the sand and didn’t want to know. I wanted it to go away, but it never did. The bills piled up and weren’t dealt with.
- Not planning for your future. Whether that is purchasing property, starting a family or retiring, the sooner you get in the habit of putting money away for the future, the easier it will be when you get there.
- Always doing what you’ve always done. If you have no money, or are even in debt, carrying on as you always did is not going to make any difference. Face up to the issues and look for ways to change your money behaviour. Do you need to cut back on your spendings? Can you find a way to make some extra income? If you don’t change anything, you will never be able to change your situation.
There are a lot more money mistakes out there. Don’t worry if you’ve made any/all of them. We need to learn from our mistakes. I certainly know a lot more about money now than I did when I was in debt.