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May 16

Common money mistakes we are all guilty of!

Posted by:AutoMoney

Money mistakesWe’ve all been there – had a tricky month financially, overspent on non-essential items or even forgotten to pay a bill on time; it happens.

However, if these things happen to you often, possibly in consecutive months, it could be a sign of poor financial health.

If you can relate to any of these, it might be a sign that you need to look at your financial health in greater detail:

Spending without thinking

Who doesn’t love payday? The bank is full of cash and the month ahead is looking good. However, without proper budgeting, many people are unaware of how much money they have to last the rest of the month after accounting for essential bills and repayments.

AutoMoney solution: Sit down, make and list of your finances and take control of the situation! By working out your income versus your expenditure including all essential bills, such as rent or mortgage payments, council tax and utility bills, you will then be left with a clearer picture of how much cash you are going to be left with. Try and budget with a set amount each week, say £50 to cover you for the extra things you might need to purchase, such as car parking, weekly lunch out etc.

By keeping a closer eye on your income and spending habits, you will find that budgeting is easier to do.

Ignoring issues!

If you’ve missed a payment, ignoring the issue is not going to make anything better – or solve the problem.  Ignoring missed payments means that your credit score is hit, additional interest and late payment fees are added to the account,  and you might end up spending your days worrying about who is ringing the house phone, or who could be knocking on the door late at night.

AutoMoney solution: Face up to the debt – it really is as simple as that. Work out how much you owe and contact the debt owner directly and work out a plan to pay it back. If you are honest and open, you are more likely to work out a solution that is suitable for both parties. Take ownership of your finances, both good and bad and work out a way to get yourself back on track. 

Keeping up with the Jones’!

Do your neighbours, best friends, or family members have nice things that make you feel envious? Holidays, new cars, swish garden furniture, or even the latest electrical devices are all likely to cause jealousy pangs, but throwing money away frivolously just to keep up with other people is never going to help aid your financial health.

AutoMoney solution: If you want something, save for it. By the time you have enough money, you will both enjoy buying it and have a real sense of achievement when handing over your hard saved dosh. Or you may decide that you don’t need it after all, so you can keep the money in savings instead!

Never forget that you will never fully know other people’s financial situations, and therefore never really know whether they actually can or can’t afford their spending. Instead, keep yourself on the straight and narrow with your budgeting and saving and enjoy the things that money can’t buy – family time, walks in the park and other things that are free, fun and fulfilling.

Do you have any other ideas for keeping your financial health in check?

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