Money mistakes and how to avoid them

We’ve all made money mistakes before, those expensive shoes that didn’t quite fit or that equipment for your latest hobby that you realise just wasn’t you. We all have certain things that we love to spend money on regardless of whether it’s was a good idea or not, and before you know it, a good chunk of money has gone down the drain.

Waiting to pay off credit card debt

The longer you take to pay off your credit card debt the more interest racks up, making it even more expensive than the original amount and very easy to spiral into further debt. This will also affect your credit score, making it harder for you to borrow any more. Aim to pay off the entire bill each month so that you won’t be paying any interest.

Ignoring your credit score

Checking your credit rating once a year, for as little as £2, will help you take any measures necessary to improve your score. In turn, you will be offered better rates on financial products and services, such as loans, mortgages and credit cards, saving you thousands in the long run.

Not saving enough

35% of Britons say that failing to save more money was their biggest mistake. The easiest way to save is to set things up so that you automatically add a little bit each month to your savings. It’s not easy to change how much money you have coming in but most people can change how much goes out.

Difference between wants & needs

It is becoming more difficult for people to tell the difference between wanting and needing certain items. There will always be a newer and shinier product than the one we already have and we always think that with that new product our lives will be easier or better. With this attitude, it is very easy to overspend, maxing out credit cards and getting into debt. If you are going to spend on wants make sure that you can pay off your debts

Not having a budget

Budget is a word that could make a lot of people switch off or fall asleep, associating it with a lot of hassle, restrictions and headaches. Others feel that they are too poor to budget or have other budgeting excuses. However, a budget can save you money, and allows you to make the most of your money. It can be as simple as you want, and flexible to suit your budgeting style.