Money Moves You’ll Regret Making

by Lynn

We’ve all made mistakes and we all have regrets at some point in our lives. There are money moves you’ll regret making if you don’t avoid them. If your financial goal in life is to be rich or financially secure there are certain money moves you should avoid making so as to be secure.

Here are some money moves you’ll regret making as you grow older;

Not Budgeting

Even before your paycheck or your source of income hits your account, you should know how you plan to spend every single cent. You can use the 50/30/20 budget rule to help you create a budget. This is one of the important frugal living tips because this way you focus only on the important expenses. Budgeting helps in compartmentalizing your expenses and your priorities. By always having a plan and a budget you can avoid wasting money and overspending on unnecessary items. Not budgeting is one of the money moves you’ll regret making in the future. Not knowing how to spend your money and where to allocate your money is a grave financial mistake you should avoid.

RELATED: How the 50/30/20 Budget Rule works

Not Saving

Having a savings account is very important. When it comes to saving, just go cold turkey and automate your savings. This way you will be forced to work with what remains. A common mistake people make is saving what’s left after expenses. Having a standing order will make sure you save. Set up a savings account where your savings will be deposited after they’re deducted from your account. Ensure that your savings account is not easily accessible. You can save in a fixed account or in a low-risk money market account.

RELATED: 10 ways to save money on a low income

Paying Minimum Debt

If you’re in debt, you should focus on clearing your debt. Stop paying the minimum debt requirement and focus on clearing your credit card debt and loans. Cheap loans and debt can have you living paycheck to paycheck for the rest of your life. You have to be careful before you borrow money. Every time you take a loan that is not guaranteed to make you money in the future, you rob your future self. Come up with a get out of debt plan. Once you clear your debt you will free up more money to save and invest.

RELATED: Debt repayment plan: The ultimate guide

Not Investing While You’re Young

Start investing as soon as you can. The younger the better. An investment will safeguard your financial future. You don’t need a lot of money to start investing. There are many ways of investing that don’t require thousands of dollars. Do your research and start investing as soon as possible.

Not saving for your children’s education

Education is expensive and is continuing to become more expensive as the years go by. Saving for your child’s education is crucial. This is one of the money moves you’ll regret making. Not saving for your children’s education will set your child back in student loans or you will end up using your retirement funds to pay for their education. Starting early is crucial.

Living Above Your Means

Living above your means will have you looking rich while you’re still broke. Embrace frugal living. Frugal living is about learning how to live on less or on what you need. Live below your means if you want to go debt-free. One of the habits of debt-free people is living below their means. You don’t need the latest designer outfits and the latest iPhone. Don’t go broke trying to look rich. You don’t need to use up your credit cards to buy things you can’t afford with money you don’t have. You can treat yourself every once in a while but be careful about splurging.

RELATED: 25 Frugal Living Tips To Save You Money This New Year

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