Are You Making These 13 Dumb Money Mistakes?
Are You Making These 13 Dumb Money Mistakes?
I did and sometimes still do. These mistakes cost me years of paying back several credit card and loan bills. Read through them and see how you can improve your money habits!
#1 Ignore The Relationship Between Self Worth And Money
I used to think that money and how I felt about myself weren’t related, but there is a strong relationship between your feelings of self worth and how much money you have in your life.
If you feel down and out because of getting divorced, breaking up, not living up to yours or someone else’s expectations, someone you love passing away – these are times when money leaves our lives because if we don’t care about ourselves we also don’t care about our money.
It’s important to take care of yourself. I began saying nice things to myself, to override all the negative things I used to say about me.
I know now that I am a beautiful, loving, kind and worthy person. My Money and Finances reflect how I feel about myself.
#2 Pay My Bills First
It seems counterintuitive to save money, invest money and pay yourself first when you have so many bills to pay. However, that’s why you are having financial difficulties.
Learn to Pay Yourself First, and you will find that you are going to have more than enough money to pay the bills.
I started with putting a dime in a jar labeled “Financial Freedom Account – FFA” everyday.
Start with something or you will never start. It’s the habit that is important.
#3 Pay At Face Value Without Negotiating
A lot of things that are for sale are negotiable. Cars, houses, condos, clothes, furniture for instance. Never go looking for a purchase without first having a price in your own mind that you are willing to pay. Anything over that price just walk away.
#4 Pay Fees From Banks
I used to just pay bank fees. Now I will call the bank, find out why I got the fee, fix the problem and get the fee reversed. As long as you are reasonable with your bank, they will be reasonable with you and reverse the fee.
Call the manager if you need to because sometimes tellers don’t have the authority to reverse fees. Be polite and reasonable.
#5 Do Automatic Bill Payment
I used to have a lot of my bills on automatic bill payment. Now I have no bills on automatic bill payment. I do have my savings and investment transfers on automatic transfer though. My system is set up to pay myself first, bills are second.
#6 Invest Without Any Research
I used to just read or hear about a stock or business idea and just pay out my money without doing any research. You hear something is a great deal, your friends are making money, if you don’t jump on now you’ll miss the opportunity!!!
Oh no!!!
Yup, been there done that.
Do your research, and really do it. Does the business even exist? What is the track record of the managers? What are you risking? How are you going to get your return on investment? Is the industry sound?
#7 Buy on Impulse
Ever go to the mall or shopping and come back with extra stuff you didn’t plan on buying? That’s because you bought on impulse. If this is a problem for you, don’t bring any money when you go out and leave your credit cards at home.
#8 Buying Excessively – Wasting Food
Before COVID I used to waste food. I would buy in excess at Costcco and inevitable something would go bad. Now I buy and cook same day. Other groceries I wait until my fridge is bare, and then I go shopping.
I ask myself, do I need to buy that today? Do I have enough to eat today? If the answer is yes then I put off shopping until I really don’t have food to cook.
#9 Buying Excessively – Clothes, Gadgets, Starbucks Drinks, Etc
This is a very common issue. I was just at a friend’s house looking through his Amazon purchases and he had books, tools, and equipment that he never read or used. He was looking at the return window but it had already passed. He had spent over a thousand dollars on stuff he never used.
#10 One Click Buy
Amazon now has one click buy, where you may accidentally hit buy just scrolling on your phone. Beware and remember that you can always return things.
#11 Not Being Specific With Lawyers, Accountants, and Professionals That Bill By Time
Lawyers will bill you by the hour so make sure you tell them what you want to pay and how you want them to answer. Do you want an e-mail resposne or do you want a conference call? Be specific.
#12 Paying Everyday Expenses With Credit Cards
I started using cash to make grocery and eating out purchases. This has saved me so much money. When I don’t follow this I end up over spending.
#13 Not Keeping Track of Finances Monthly
Alecia and I keep track of our expenses every month. We chart our Cash Flow, Net Worth, Financial Freedom Account and our Passive Income. I highly recommend you do this to stay in financial shape. CLICK HERE if you need a supportive group to help you out.