All people sooner or later make big or minor mistakes. It is important to be able to think about them, draw the right conclusions and try not to repeat them in the future. This article describes the main mistakes in the management of their own money.
1. Lack of cash reserves
More often any monetary stocks are created on a “rainy day”. If you do not have available foreign exchange reserves, they need to be formed. A universal recipe: put off a certain percentage of the money you earn. It’s not as difficult as it may seem, but you’ll soon see the result.
2. Inability to plan
Many people are familiar with the situation when money is not enough until the next salary. And it’s not so much in the amount of wages as in the inability to distribute their finances. Learn to control your expenses. For example, immediately after receiving a salary to put off on utility bills, for food and travel, it is desirable to leave 10% for the reserve, and for the remaining money to live up to the salary.
3. Inadmissible expenses
There are situations when a person needs to buy a certain amount of goods, and there is not enough money for all this. Many people turn to banks, and the loans they provide substantially increase purchasing power. But at the same time, the costs for the service of loans are also growing. To take in our time, consumer credit is easy, but getting rid of it is not so simple. Do not spend money on the purchase of something that you are not particularly necessary.
4. Delays in payment of debts, including loans
The delay in payment can significantly impair the reputation of a person. If you took money from a bank, then information about the delay can be found in the credit history bureau. And that means you can not get a loan anymore. If you borrowed money from relatives or friends and did not give it on time, you can lose their trust.
5. Writing a will
And now about the sad. How do you think, who will dispose of your means, in the case when you have not left a will? The state! And do you really want our government to take care of the material well-being of your children?
In order to avoid such a situation, it is better to think in advance about the drafting of a will. Yes, it is not very joyful, but necessary.