3) Not Earning Enough to Cover Expenses
Spending money on things you don’t actually need, which will only wind up being stored in a closet, is a drain on your finances. Unfortunately, many people do that as a habit. The result is that they spend more than they earn. This is one of the most detrimental money management mistakes. It is easy to make this mistake, though, unless you are vigilant. You have to set aside enough hard cash to cover your purchases and other costs such as housing and insurance. Otherwise, even if you only spend a few dollars each month over what you earn, you’ll go into chronic debt. Then the financial problems tend to snowball. Don’t fall into this trap. Be sure that you can afford whatever you buy, so that your debts don’t grow larger than your income.
Click below to share this article.