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Wednesday, 09 May 2012 13:41

Are you making common money mistakes?

Life is full of surprises. Some of them are wonderful, but some stink. If you could take a few simple steps and avoid a few nasty mishaps from common mistakes, wouldn't you want to do that? I like to avoid unnecessary pain when I can, so I like a plan that incorporates mistake-avoiding steps. Here are the four most common money mistakes, and how to avoid them, from a recent survey.

Mistake #1 Budget - As in not HAVING a budget. According to this report, over half of Americans report not having a budget, and 20 percent have no idea how much they spend on housing, food and entertainment. No one has so much money that one can just make spending a hobby. If you spend without keeping track, life will be crazy, not cozy. In no other part of life do you get anywhere without a general plan. You don't get in your car and make a trip without thinking about your destination and whether you have enough gas to get where you're going. Budgets are a cozy. They are your money's plan for fun and savings, bill paying and your future. They track where you hope to go on your money journey and where you have already gone. A budget is a good thing. Please have one.

Mistake #2 Saving - Forgetting to save - or not knowing how to save - is mistake number two. According to the report, 40 percent of respondents are saving less this year than last, and another 40 percent have no money saved for retirement. Many surveyed reported that they didn't know how to save. I'm not even sort of suggesting that you need to be perfect at any of this, but you do have to try. That's what grownups do. They make proper plans. And when they don't know how to do something, they ask for help. We don't know what you don't understand unless you ask for help. I want to help you! But I don't do Vulcan mind-melds, so you'll have to speak up. Then I will quickly help you.

Published in Money

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