|
AVOID COMMON FINANCIAL BLUNDERS : The economy
has certainly evolved over the years. It has become such a material
world now. Consumption patterns of people have changed drastically and
there is a definite rising in levels of disposable income as well as a
decline in house saving rates. It is needless to mention rising levels
of debt that is a cause of concern. We tend to live beyond our means and
dig our own graves in the process. Here’s enlightening you on the most
common
financial mistakes that can be easily avoided.
Excessive spending : It might not seem sinful
when you buy yourself super size meals or stop for a pack of cigarette
or order that pay-per-view movie. But what we don’t realize is that tiny
droplets make an ocean! A simple calculation of just $20 per week spent
on dining out costs you $1,100 per year, which you could have easily
allocated towards an extra mortgage payment. But at least be aware of
the finances involved and the impact it creates.
Endless payments : Things like cable
television, video games, and horrendous amounts of cell phones bills
etc. get you to pay incessantly but leave you owning nothing. Ask
yourself if you really need to spend in all of these.
Credit cards : Credit cards are like fiends
especially if you are an over-impulsive shopper. It tempts you enough to
buy more than you can afford and then you end up paying huge rates of
interest ultimately making it really hard on your pocket.
New cars : Borrowing money for buying your car
means paying interest on a depreciating asset that certainly amplifies
the difference between the value of the car and the price paid for it.
People who trade in their cars every two or three years because of their
obsession with the latest cars available in the market, leaves them with
an everlasting loan on cars that is unwarranted.
Buying an expensive house : You need a house
to live in. Given the prices of real estate today, it is wiser to go in
for chic and small house than one that is too huge. Apart from the price
you’d pay for a big house, taxes, maintenance and utilities will eat you
up.
Refinancing mortgage : Refinancing and taking
cash out on your gives ownership to someone else. It is also going to
cost you thousands of dollars in interest and fees. The result of the above makes you literally shaky
towards the end of the month were you eagerly await your next paycheck
in order to survive.
Everyone has a choice. It is all about
making savings
a priority. Start by monitoring your expenses and make a conscious
effort to avoid those extra luxuries. Think five times before you take
the credit card out of your wallet. Keep in mind that being able to make
a payment does not mean you can afford the purchase. Spend less, save
more. |