Last week in one of our blogs we focused on some of the common mistakes that people make that doomed them to a life of being broke all the time. We’ve come back this week with a number of other, similar mistakes that we’re hoping will give you some insight into what not to do with your money. If you’re not a fan of being broke all the time, read about these mistakes below and avoid them like a plague. Enjoy.
- Lying to yourself about your financial situation. Many people tell themselves that they’re going to “work until they die” or, even better, “downsize to a cheaper lifestyle” when they get older. While legally there’s no law saying that you can’t work into your 60s, 70s, 80s and beyond, the fact is that the chance that your body will physically and mentally give out before you actually pass away is pretty high. It’s a bit depressing, we know, but it’s also fact. If you don’t have anything put away to take care of you once you are physically unable to work anymore, your life might turn bleak rather fast.
- Making impulse purchases regularly. Listen, all of us make the occasional impulse buy and, truth be told, once in a while is no big deal. When it does become a big deal is when you max out your credit card or spend every last penny that you are purchasing everything in sight because you just don’t have the patience to wait. There’s no better way to go through life broke than that.
- Being “loyal” to your bank, insurance company, cable company or smartphone provider. At least once a year, if not every six months, you should take a look at all of the providers of services that you work with and make sure that you’re not only happy with them but that they aren’t overcharging you, hitting you with hidden charges or just plain have higher rates than the competition.
- Hanging on to all of your old junk. Here’s a great rule; if you haven’t looked at something or used it in six months, you don’t need it anymore. (Disregard this rule for holiday decorations.) Personal experience has showed us that hanging onto things that you’re no longer using, but that still have some value, is the best way to make sure that they end up losing any value they might’ve had and you and up getting practically nothing for them when you finally do try to sell them.
- Trusting salespeople. If you do this, well, you might just deserve to be broke.
- Putting all of your money into an old home that you think is a great bargain and will be an excellent “fixer upper”. Unless you have all sorts of extra cash, quite a bit of experience in the construction industry and a whole lot of extra time on your hands, this is just a bad idea.
- Using a Title Pawn company for quick cash. The interest that these places charges is absolutely ridiculous and will eat through your spending money quicker than a chubby kid with a box of chocolate chip cookies.
While we tried to be a little bit funny with some of these examples the fact is that many people make them on a daily basis. Being broke as a joke really isn’t much of a joke and, if you’re making the mistakes above on a regular basis, the joke will wear thin pretty quickly. If you’re really not that good with finances, do yourself a favor and contact a professional to give you the advice and information that you need. If you have questions about personal finances you can also drop us a line, send us an email or leave a comment and we’ll get back to with real information, advice and answers ASAP.