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7 Financial Mistakes You Don’t Need To Make Anymore

7 Financial Mistakes You Don’t Need To Make Anymore

Financial stress affects every aspect of your life. We are living in a society where we can just charge, charge, and charge. It seems like we are never satisfied. There will always be the latest gadgets, cars, and fashion to buy. With so many options, it’s easy to make financial mistakes. These mistakes will get you out of your depth and ultimately take control of your life. Read on for seven common financial mistakes and make sure you don’t ever make them again.

1. Paying unnecessary ATM or bank fees.

Banks are established to make money. With so much going on in life, it’s easy to not check your accounts on daily basis. This financial mistake is common and can really become a problem. ATM and bank fees add up over time, and if you’re not aware of how many fees your bank is charging, you will continue to lose money. Speak with a representative from your bank and be clear what the ATM and bank fees are. This will help you avoid unnecessary fees. Furthermore, you may want to check out some banks that literally have no fees, like Capital One 360 or Charles Schwab.

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2. Ordering too much take out.

Let’s face it: we have busy lifestyles. We can have a very hard day at work and come home late. When this happens it’s very difficult to be motivated to cook a nutritious meal. It is so much easier to just order take out on the way home. Nutritional value aside (this could be a whole other topic!), the price of ordering take out on a regular basis can seriously add up over time. Sometimes Chinese food can be from $10, $12, and sometimes even $15. And who doesn’t love ordering Chinese food every once and a while? Just keep in mind, you could spend that same money and buy something like the ingredients for a healthy pasta from the grocery store. Aim for things that allow you to cook enough for leftovers. You can always bring leftovers to work on your way out the next morning. Leftovers = One Free Meal = You Save Money.

3. Not telling your money where to go.

Money was meant for spending. What’s the point of having money if you don’t eventually spend it? Most of us understand this; it’s probably instinctual. We see money in our account, and we usually have an inclination to spend it. If you don’t tell every penny of your money where to go, there is a very good chance it will disappear. The crazy thing is, most of the time money disappears by small, seemingly insignificant purchases that add up, like ordering take out or eating fast food, magazine subscriptions, clothes, movies, etc.

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In a nutshell, the best thing to do with your finances is to calculate how much income you make and subtract the total amount of your bills and your expenses throughout the month. In your expenses, if you can, be sure to specifically allot a certain amount of “fun money” for yourself, which allows you go out and buy magazines and clothes, etc. If there is any remaining money after you subtract your expenses and bills from your income, put that aside for some savings goals.

4. Never making priorities in life to decide where your money should go.

It’s crazy to think that so many people rarely, if ever, stop and actually think about what things in life make us happy. It makes sense to spend money on the things that make us happy, right? Unfortunately, many people live on autopilot and continue to let their money slip away from them on small, insignificant things that ultimately don’t matter. Don’t make this mistake! Instead make happiness a priority and organize your finances so you can spend money on things that will be fulfilling to you. It doesn’t have to be expensive, either. It could be as simple as just paying a baby sitter so you can spend a few hours of quality time with your spouse.

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5. Starting a retirement account too late.

This is a very common mistake. It can be difficult to see the consequences of not investing in a retirement account. Because there is no instant gratification in saving for retirement, it might be hard to be motivated. Put simply, every day you delay saving for retirement you are hurting yourself. Because of the percentage rate of retirement accounts, your money actually compounds over time. Time is the key word here. If you start early you will actually be making good money by the time you retire. Dave Ramsey recommends to put away $250 a month. The best time to start an IRA account is literally as soon as possible. So start now!

6. Not paying off loans and debt as soon as possible.

This is the exact same concept as point 5, except the situation is reversed. If you have any debt at all, you want to do your best to pay that off as soon as possible. Over time, your account balance won’t be ‘making money’. Instead, you’ll be losing money. The longer you wait, the worse things will get. If you wait too long, debt can spin out of control. Don’t let this happen to you. Make it a priority to pay off any debt you have and avoid accruing any more if you can help it. The best way to handle credit cards is to always live below your means and pay the account balance in full at the end of every month.

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7. Not living within your means.

There is a misconception that if you have good-quality things in your possession, you feel good having them and you will feel good when people see that you have them. Not true! Driving a Toyota Corolla with little debt is better than having a Mercedes-Benz you can’t afford and tons of debt.

The truth is, there may be a legitimate amount of satisfaction from having good-quality things. In fact, there’s nothing wrong with having expensive things. The trouble comes when you overspend way outside your means in order to purchase something. The stress that follows is not worth it. There is no price to having a happy, stress-free life. The amount of satisfaction from owning something purchased beyond your financial means wears off after a while. At that point, all you are left with is the financial stress. Why invite troubles into your life? Remember: smarter is better than sexier!

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Tiffany Mason

Tiffany is a life coach empowering women to unleash their feminine essence & design a meaningful life & marriage.

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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