The Four Dumbest Mistakes People Make With Their Money

And how to solve them

Recently, I purchased an iPhone 13 while I still have my android phone working perfectly. As a result, the new phone is often ignored more than the other.

I admit that I’m not a financially literate person. I am irresponsible when it comes to money management, but all that changed when my friend educated me on how I should handle my money. Here goes.

1. Not Knowing Your Monthly Expenses

This ruins your life more and more since you ignore everything that has to do with your finances, and this damages your economy since you borrow senselessly. Moreover, you do not realize what you have to pay since you do not know anything about your debts and of your monthly payments.

My solution to this error: Find a book that teaches you finances

This will make you realize where your cash flow, assets, and payments are, which will lead you to improve your economic situation, leaving aside the mistake of not knowing about your Expenses.

2. You Spend More Than You Earn

This keeps you poor all your life, and since there is no way to stop yourself from overspending, you have to know that every time. So you spend the extra money, sinking deeper and deeper into debt, and this mistake is so common that we all seek to borrow more than we earn without sense or for some emergency.

My solution to this error: Buckle up and do it now.

This will help your finances because if you refrain from spending more than you earn, you will realize that you can live better than you thought only with your salary is well organized and planned in order and a good plan of your money, this will help you.

3. Not Knowing How to Use Credit Cards

You have credit cards, but you DON’T know how to use them right. I say this because we usually use them to go out and have a good time or to eat delicious food away from home or at a hotel on the beach

These things are harmful if you don’t even know what they are called or the benefits they provide, or what you could do with them. They

My solution to this error: Good for you if you pay attention to what I will tell you

The first disaster of all the cards in which you have debts, then go to your bank account and have them explain step by step what are the benefits that it offers you and then ask people who live well financially how the best use of these cards is.

I will tell you that the cards give you bonuses, travel points, shopping points at this time and more. You must pay how? Well if you use 80% of your salary you can pay it very well without problems, the game of this is not to exceed this amount and use it only for what you need without more extras or surcharges.

4. Spending Unnecessary Money

This talks about junk expenses. I call them expenses that are going to be wasted in their entirety. Those expenses that do not generate money in return for your investment are only to satisfy your ego or your desire to have him.

My solution to this error: Looking to buy these great quality things

For you to avoid voting for them quickly, it’s okay, that way, you save a lot of money, and things will be helpful to you

I’m not saying that your irresponsible money management will change overnight, but you now have some references of what you should look at before making another purchase.