If you find yourself getting farther behind then ahead when it comes to saving money you could be committing a number of mistakes that are costing you. Lets look at four common mistakes people make when it comes to saving money and how to fix them.
- Ignoring Small Purchases – Small purchases can add up in the long run and not keeping an eye on your small purchases can really put a dent in your wallet. Correct this by keeping track of your small purchases and see if you can cut them back. For example, if you buy several coffees at a shop everyday this will add up. Try bringing your own in a thermos. If you spend a great deal on fast food try packing a lunch instead.
- Ignoring Your Balances – If you are have having a problem saving money chances are you are not on top of the balance in your bank account and you are not watching where the money is going. This relates back to point number one but on a bigger scale. I constantly watch my bank account balance to see where my money is being spent and try to find ways to budget better and spend less.
- High Interest Loans – If you are constantly running over in your bank account, using cash advances on credit cards or high interest debt loans like payday you are not going to get far ahead. You have to start to make changes in your spending habits and do two things. Fix your spending so you are not doing this and get those debts payed off. Start with the higher interest loans first and work your way down.
- Denial – Denial is bad in anything you have a problem with and denial that you are spending too much is a bad way to be. By accepting the fact that you have to save or that you have to stop spending the way you currently are the faster you will get out of the hole you are in.
I realize this all sounds easier said than done and it is. I am not going to lie but if you can start to get a grip on your spending habits, start budgeting, stop borrowing and realize you want to do better, you can.