5 Financial Mistakes You Should Never Make Twice.

manage debt - finding ways to manage debtEveryone makes mistakes at times. The key is to never repeat them. If you’re looking into ways to create a brighter financial future for yourself and your family, read on. Here are 5 financial mistakes you should never make twice.

1. Using credit cards to get by.

If you find yourself relying on credit cards to pay bills and to fund your nights out, then you really need to have a good look at your financial situation. Credit cards should only really be used in emergency situations, or when you simply don’t have enough cash on hand to make a purchase. They shouldn’t be used to pay for things you can’t actually afford. Many people find themselves deep in credit card debt, and if you’re one of them, speaking to the friendly folks at Fox Symes can help you better manage your debts through debt consolidation.

2. Taking out a loan for a holiday.

Sure, everyday life can get stressful, with all the assignments, projects and other commitments that seem to fall on our plates each and every day. And you may want to take some time out and go for a holiday to relax and unwind, and basically get away from it all. However, you shouldn’t be going on a holiday if you don’t have the money to fund it. Too many people take out loans to go on a trip and unwind, but end up making things even more stressful for themselves on their return. Don’t be one of them.

3. Rushing into a big purchase.

Unfortunately, many people aren’t taking the time to conduct the research necessary when making big purchases. And they ultimately come to regret them down the line. Big purchases shouldn’t be rushed into. They require thorough research, and you may need to speak to an expert to help you with your decision.

4. Neglect to build an emergency fund.

Have you ever heard the saying that you should“save for a rainy day”? It really is a great idea, and putting some money aside each week in an emergency fund can really save the day if disaster should strike. At the very least, you’ll have a nice little savings fund that you can then use towards an investment or a much-needed holiday.

5. Not setting financial goals.

If you fail to plan, you plan to fail. This is true in all aspects of life, including your financial future. Make sure you have set a number of financial goals to help keep you on track. Having a goal in mind can keep you motivated during testing times, and a little foresight can make things a lot easier for you in the future.

Hopefully being aware of the mistakes other people have made – or are still making – can prevent you from doing the same. Make sure you don’t use your credit cards to get by, and never take out a loan for a holiday. It just isn’t worth it. Also, never rush into a big purchase. Finally, make sure you are always putting money aside for a “rainy day” and always have a plan.

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Comments

  1. Wow, nicely written and so true. When I was first in business I lived off credit cards for 2 years and the debt almost ruined my life. Got out of it eventually but it was scary for a while. I never asked for help but I should have. That’s a big lesson to learn.

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