Use our UK Finance guide and learn by experience. We outline pitfalls so that you don't have to learn the hard way, as many of us often do.
Sound Advice
Common Financial Mistakes
In this material world of buy first worry about it later we find ourselves in a sea of debt and mismanaged funds. Our depletion of disposable income and household savings are becoming a cause of concern. While economists tout the virtues of consumer spending for keeping economies afloat, on a more personal level, rising levels of debt are cause for concern.
There are a few common mistakes we make in achieving this financial hardship and I aim to pint a few out in this article, outlying a few key facts we tent to overlook while we go about our daily spend.
Never-Ending Payments
Car payments definitely fit into this category among other things. Never completing the payments on your car always upgrading to a new model and not ever actual end up owning the vehicle can be a major money loss long and short term. Imagine how much you would save if you actual owned a car. Maybe its time to downsize and start thinking about your future.
Financial Planning
Think that financial planning is the same as retirement planning. Retirement planning is a part of it, but certainly not all. Complete retirement planning involves cash flow, investments, income taxes, insurance and estate planning. Leave one out and you may find retirement miserable.
Credit Cards
Living on borrowed money has become somewhat the norm now days. Continuous spending on credit and only paying off the interest only ads to the problem and facing up to it become an even daunting task. Unless you are a disciplined individual, buying on credit cards more often means you spend more than you can afford.
Spontaneous or Emotional Decisions
This one hits home for a lot of us. Avoid making financial decisions or making large purchases after a major life change - like getting married... or getting a new job that pays more, or just because you moved into a new house. If you're mad or angry, don't go buy a new dining set, take a nice walk in the park instead.
Buying Too Much House
We all want a big house 5 cars, but are they really necessary. When it comes to buying a house, bigger is also not necessarily better. Unless you have a large family, choosing a home with 6,000 square feet may cause you to pay for more than you need or use. Taxes, maintenance and utilities on such a big home will put a significant, long-term dent in your monthly budget.
