Here are the BIGGEST financial mistakes that everyone makes that is actually a BIG deal.
We all do these two things, and it took me living on my own (and reading books about finances) to realize that these mistakes I make are what causes my financial struggles.
- Never skip a payment, EVER!
Let me break this down, because it only applies to certain things.
We sometimes tend to skip on paying certain bills to use that money for something or the other. I see my mom do this ALL THE TIME. It seems like a great idea at the time.
Example: you’ll skip paying that PSE&G, credit card, car note, or even cable bill because you want to use the money for something else.
The problem with that is you probably will not pay that off for a long period of time.
Think about it, your bill is $200 a month, you skip March to use the money for something else. In April the chances of you having $400 for that particular bill is pretty slim, which leaves you with a lingering balance of $200 for a long time.
YOU SHOULD NEVER BORROW MONEY. (unless you are borrowing from a bank, friend, family member etc)
2. Never NOT pay yourself, EVER!
I know what you are thinking, “pay myself?” “huh?”
Yes, pay yourself. You deserve at least 10% of what you earn. One of the biggest mistakes you can make with money is not paying yourself.
That 10% becomes your investment money. Which can later create a passive income for you that will then lead to financial freedom and stability.
And no, you cannot borrow from your 10%. As a matter of fact if you do borrow from yourself pay yourself back with interest. As if you were a bank.