Wednesday 29 September 2021

Are You Making These Massive Financial Errors?*

It’s easy to make mistakes with money. Doing so can land you in hot water so let’s look at some of the key steps that you need to consider to keep your financial situation happy and healthy and the mistakes you must avoid. 

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No Savings 

First, it’s worth noting research shows that the majority of people these days do not have any money in savings. This is why so many ended up in trouble at the start of the COVID-19 pandemic. If you have savings, then you’ll be ready to face any rainy days that lie ahead. This means that you can cover costs of issues with your home or even a period of redundancy. 

Saving is often about getting in the right mindset. Treat it like a tax you have to pay each month and you’ll be surprised how much you manage to get together. 

Forgetting To Even The Odds

A little further down, we’re going to discuss why it’s important to invest your money. If you are doing this, then you need to make sure that you’re not just gambling. Even gamblers don’t just gamble their money. Instead, they use tips to give them better odds at getting the right pay off. If you want to know how to find the best horse racing tipsters, then there are guides online for this but there are also guides online for brokers. Brokers are like tipsters. They’ll search the market for you and find the right investment to focus on that is more likely to pay off. 

Failing To Invest 

If you are saving, then you should also be investing. Ideally, you should aim to invest about half of what you save each month. You might want to think about exploring a few different types of investments so that you diversify your portfolio as much as possible. For instance, you could look at cryptocurrencies as well as other options like property. The more diverse your portfolio is, the easier it will be for you to stay in the green with your investments. You don’t have to be an expert to win here, but you should, as we mentioned, do your research and get help from the right people. 

Not Keeping Track 

Everyone should have a budget that they are working with. This is true regardless of how much you are earning. You need to keep track and ensure that you are not living past your means. One of the ways that you can handle this is by working out your income which will usually be the money you get from your main job. You should then add on any side hustles and we’ll discuss these a little further down. Once you have done this, you can then subtract your bills from this amount and any other costs that you need to cover each month. The amount left is the money that you can save but you’ll probably spend a portion of this on little luxuries that you are interested in. 

No Side Hustle 

Next, you should think about setting up a side hustle. It doesn’t matter how much you are making from your main career. Financial experts argue, rightly so, that you should still have a side hustle in place. There are lots of different examples of side hustle and it will basically give you an extra cushion of cash that you can use however you want. You can use it for investments or you can use it for little luxuries that don’t fit in your main budget. 

Forgetting The Value Of Money

Finally, if you have enough money to get by, then it’s easy to forget the value. What we mean by this is that you can end up throwing it away on things that don’t really matter and don’t benefit you. For instance, you might buy a product without checking whether you’re paying the best price and getting the best value on the market. If you do this, then you’re already making a loss and overspending. That’s a problem because this is money that you could put elsewhere. You could use it on an investment or you could think about putting it in savings. By missing the value of money, you are also missing out on a lot of opportunities. 

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We hope this helps you understand some of the key steps that you should take to ensure that you don’t end up with financial issues in the future. If you explore the right options, then you can guarantee that you can even access a better quality of life.

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