Learning to properly manage your finances can feel almost impossible.
It seems like no matter how hard you work or how much money you make, it’s just never enough to cover all the things you need and want to do. However, it’s possible you might be making some money mistakes without even realizing it. It’s okay; we’re all guilty of a few bad financial habits, and the first step is becoming aware of them.
1. Not saving enough
Or worse, not saving at all. There’s a reason why there are so many tips for saving money from financial experts all over the internet. According to Jennifer Barrett, Chief Education Officer at Acorns and Editor-in-Chief of Grow, the easiest way to save some extra money is by setting up automated transfers to your savings account.
2. Living above your means
Living above our means is a money mistake a lot of us make, because it’s honestly so easy to do (especially in the age of credit cards). To avoid it, it’s important to make sure you aren’t spending more than you’re earning.
3. Not sticking to your budget
One of the biggest money mistakes you can make is failing to follow your budget. Without a realistic budget you are more likely to spend more than you should — which could quickly lead to debt. And remember — a budget doesn’t mean deprivation! It’s just a spending plan that maps out what your expenses are for the month, and how much you can allocate for each expense (like avocado toast). This way, you get a clear picture of whether you’re living within your means.
4. Not having an emergency fund
Life is unpredictable. You never know when you or someone you love will end up in a situation that will require a little extra money. Just like the savings account, you can set up an automated transfer for an emergency fund.
5. Avoiding the “money talk” with your significant other
Talking about money is awkward, especially in the early stages of dating. But if you’re thinking long-term with your partner, this is an essential conversation to have.
Taking control of your money can be life-changing. The security of financial freedom is empowering. Start small, start today, and you’ll get there!
Originally created from here.