4 Debt Mistakes You Should Avoid
It’s not hard to make financial mistakes.
You get into habits that are difficult to break, but these bad habits can affect your bottom line – in a very negative way.
And that can have an effect on other parts of your life and well being.
If you want to reduce your debt and improve the look of your finances, it’s important to stop making the following mistakes.
Your financial future and your family’s financial future may depend on it.
1. Using every sale as an excuse to shop
Just because things are on sale does not mean you have to buy them. If you’re a window shopper, either in person or online, and you are tempted by sales, it’s time to stop window shopping.
Window shopping is only fun if you can control your spending. If you see something you like, you can save for it and wait until it’s on sale again.
Remember that things will be on sale again. If you purchase everything that’s on sale, you’re really wasting money because chances are that you don’t need the item to begin with. This type of shopping can plunge you into debt – quickly.
2. You eat out a lot, even when you have groceries at home
If you do grocery shopping every week or two, you should be eating at home the majority of the time. If you decide it’s easier and quicker to eat out, you’re wasting money. Not only will you spend more money on eating out, but the fresh food that you purchased will likely not all get used, which will lead to more waste of money.
Limit eating out to a couple of times a week. When grocery shopping, you can shop for two less meals and avoid purchasing food that won’t be used. You can also make meals that will last more than one day, so that you don’t have to worry about picking up something quick on the way home.
Making a quick food stop can add a significant amount to your monthly costs. And can contribute to debt.
3. You stop at the ATM often (too often)
If you pull money out of the ATM whenever you feel like it, you’re probably spending more money than you really need to. It’s easy to justify taking money out if you have money in the bank, but just because you have money doesn’t mean you have to spend it.
That’s something impulse buyers have a problem with.
If you use ATMs that are not part of your banks network, you are probably charged a fee each time you pull money out. Make sure you’re aware of how many free transactions you can make with your banking plan. Instead of taking money out on the spur of the moment, take out a set amount each week. Once you’ve spent that money, don’t go back for more.
This will help you budget better, save money and slash your monthly costs.
4. You always want to treat everyone to dinner
It’s not a bad thing to want to treat your friends now and then, but you can’t do it all the time.
Not only will you go into debt, but your friends will begin expecting you to always foot the bill. You don’t want to become known as the friend and family member who pays for everything when you go out as a group.
If you’re a people pleaser, you will have a very hard time saying no because you want people to continue liking you.
If you want to improve your finances, it’s important to make good decisions about how you spend your money. What may seem like simple choices can really impact your financial future.
By avoiding the 4 mistakes listed above, you’ll be well on your way to more sound financial footing.
And you’ll be able to reduce your debt (if you have any).
It all just requires some financial discipline. But once you start seeing the savings every month, it will become easier to stick to the plan.
The first few months are the hardest, after that it starts becoming second nature. So get the ball rolling now, your future is well worth it.