Even if you pay your bills on time and have a decent credit rating, this does not mean that you will not have financial problems in the future. After all, you can make some common money mistakes that eventually add up and turn into huge problems.
You spend more than you earn
The consequences of this mistake will overtake you much earlier than in 10 years. After all, if you start spending more than you earn, then very soon you will have to go into debt to pay current bills, which will further exacerbate the problem. To avoid such a turn, always check the status of your account, even if it scares you. And if you cannot afford some things, then it is better to refuse them or get additional work.
You do not calculate the budget
To stick to a budget, you must first plan it. Then you must be careful where your money goes. The rule "50/30/20" will help with this:
- 50% of the income should go to fixed expenses, such as rent or mortgage, transport and utilities.
- 30% should go for flexible expenses such as food, restaurants, entertainment and gifts.
- 20% of the income should go to paying off debts, replenishing pension savings and emergency accounts.
Thanks to such a budget, you will allocate funds correctly and will not experience financial problems in the future.
You have become financially dependent on credit cards
Over-reliance on credit cards will cause serious problems in your financial condition. First, you cannot always predict how much of your income will be eaten by the account at the end of the month. And secondly, when making minimum payments, most likely, you will receive even more debts.
How to avoid this? Try to pay the maximum amount to close the loan as soon as possible. So you will avoid the accumulation of debt.
You take out a student loan without calculating expenses
If you plan to get higher education through student loans, then you should have a plan to return them. First, try to participate in the program of state support for educational loans. It also has less interest, and you need to pay the debt after graduation. If this failed, then take an educational loan. If they refuse you there, then only after that arrange a regular loan.
You do not create an emergency fund
Learn to expect the unexpected. Over the next 10 years, you will not be able to avoid car breakdowns, illnesses or other troubles. And it is important that you have money to solve such problems.
If you carefully prepare the budget, you can allocate several hundred rubles from each salary in order to postpone them to the emergency fund. Set yourself the goal of saving costs for a month, then two, three. At first it will be a pity, but in the long run, your life will become less stressful.
You buy new items
Cars, yachts, SUVs, electronics are just a few large purchases that quickly lose value. A new phone is generally cheaper before you even receive it in the mail. Of course, the new must mean the reliable. But this is really an expensive shortcut, especially if you take a car loan.
How to avoid this? Most things lose value over time. And it’s better to wait at least a year to buy something expensive. Indeed, during this time it will drop significantly in price.
You don't care about retirement
Even if you have not yet made pension savings, it is not too late to start it.Do not make a mistake in believing that the Pension Fund will pay you enough to live in old age with comfort, or that the MHI policy will cover all your medical bills.
Ask your employer how much he is paying to your retirement account. And then find out in the fund what payments you can claim. If this amount seems to you too small or you work informally, then independently open a retirement account with an insurance company or bank.
You spend too much on little things
Little things like coffee, cigarettes, food in the cafe really take a large amount out of your budget. How to avoid this? Brew yourself coffee and take your own lunch for work. And of course, try to quit smoking. At first the temptation will be strong, but as soon as you get rid of the habit, you will feel better.
Are you trying to buy happiness
It’s true that money helps you buy things, and sometimes things can make us happy. It is also true that the eternal search for property can make you unhappy. Usually, the things you wanted for a long time bring more pleasure, because you value them, in contrast to impulsive purchases. But no matter how trite it may sound, the best things in life are really free. And if you try to surround yourself with positive emotions, instead of getting involved in the shopping race, you will live happier and longer.
Are you trying to change everything at once
Financial success is much like physical fitness. After all, you can’t count on making your figure perfect after your first visit to the gym? Similarly, if you have debts and bad habits, then you will need time to rectify this situation. Start small and act slowly. Think of your financial success as weight loss. And remember that there is no method for quick weight loss or instant enrichment.