Most of us tend to fall into the same money trap every month, even though we know better.
And while it is a lot easier to carry on without making any changes, there are a few mistakes that you need to stop making!
1. Paying back the minimum amount on your credit card
Not everyone can pay back their credit card in full each month, but sticking to just the minimum amount means you are going to end up paying back a lot more than what you spent. If you can, up your monthly repayments or allocate any spare cash to getting it down to a more reasonable level. In the meantime avoid using it at all, unless absolutely necessary.
2. Picking up the bill at the end of a night
It is often easier to say, “I’ll get this” than to actually talk about money with your family or friends, but this is a habit you NEED to break. It is not up to you to pay for everyone else; divide the bill according to who had what and DON’T split it equally – someone always ends up paying for more than they ate.
3. Comparing your finances to everyone else’s
There is no point comparing your own finances to anyone else’s you don’t ACTUALLY know how much they are earning nor how much debt they have put themselves in buying a particularly big car! You should be content with your own finances and if you’re not it’s time to fix it.
4. Brushing problems under the carpet
Ignoring final reminders and burying your head in the sand when it comes to your incomings and outgoings is not going to make a bad situation any better. If you are struggling to make a payment you should contact your service provider and talk about your situation. You never know, they may be able to help you.
5. Say goodbye to your overdraft
STOP using your overdraft. If you are always running into the red it’s time to sit down and sort out your finances. You can't rely on an overdraft forever - you are only setting yourself up for trouble.
