Money Mistakes You Should Avoid
As young adults, getting an increase in your allowance or having your first job will always be great. You suddenly have a rush of cash that you can spend with whatever you want. But with all the financial freedom you have, you might also experience that money is not always there when you need it. Let us help you make your savings a little bit further by giving you these tips on how you can set yourself the right path financially.
Overspending on cars
Did you ever dream of having your own car? You are definitely not alone as 80% of the UK want to have their own car or have already bought one. It is very tempting to spend your savings on a car. But if you spend every dime you have on the actual cost of the car, you might find yourself with nothing left to spend on gas, insurances and minor repairs. Be careful on what car you will buy because depending on the type, they can raise your insurance rates, require valuable gases and increase cost on minor repairs. Ensure that your budget reflects the car you will be buying.
Frequent Impulse Buying
Whether it is cheap or expensive, impulse buying can bring chaos on your bank account and leave you with regrets. Instead of sprinting to buy the latest mobile phones, do a research first if it is worth expense to replace your current phone. Look around stores and find the best price. If you are unsure of purchasing it, give yourself enough time to think about it. Do not carry too much cash when going to malls and parties.
When you have a decent job, you can now apply for your own credit card. Credit cards give you the opportunity to buy while earning points or pay for a product little by little. But the catch is the credit card company can charge you high interest rates and fees. If you miss a payment, your credit score will drop. If you have a credit card it is always safe to be careful. Read the credit contracts and learn to avoid excessive fees and interest rates by paying your balance every month.
All of us makes mistakes and overspends from time to time. Avoid this money mistakes that many people do to keep you from getting into financial trouble while helping you achieve your life-long savings and goals.