6 Major Common Financial Mistakes Almost Every Adult Makes
Stop these 6 things ASAP
1. Living without a budget
If you often shop without a budget, then it’s hard to tell what you can afford and what you cannot afford. You can end up spending so much money and regretting later. A budget gives you somewhat of a clear direction on what you need, what you can afford, and what to save.
2. “No rainy day” funds
Set aside money for emergencies in case something happens and you need money to cover those expenses. No one knows about tomorrow; you could lose your job or your car could break down. You can start saving a little every month but ensure you have money for the rainy days.
3. Having no future plans
We all want to own a home, travel the world, and catch the sunset by the beach. But how do you do this if you don’t have a plan? Begin by making a plan for the future and everything will fall into place.
4. Loan for a wedding
Don’t ever mix emotions and money. Having a wedding leaves a considerable dent on the pocket as a young adult. Ensure that you have saving while planning for your wedding; don’t borrow from the bank to finance a wedding. If you want a simple and moderately priced wedding you could do an invites-only wedding and try to cut costs where you can.
5. Not having health insurance
Medical treatment is very expensive; especially if you don’t have insurance. Health insurance covers most of the expenses in the hospital; so ensure that you start paying for your health insurance.
6. Rushing to pay Government student loan
People rush to pay their student education loans; which is actually a good thing but you could end up having no loan and having no savings as well and this is not a good thing. Wait until you are sure you have enough money to pay your student loan especially if you don’t have a stable job. Pay during waivers to make your work easier.
If you can count your money, then you’ve not made enough money.