Money Mistakes You Could Regret Later in Life

There comes a time in your life when you reach a certain age or stage in your career when you can look back and reflect upon where you are at.  You don’t have to necessarily be old to do this; you could be in your thirties, ten years into working and still have wished you had done things differently, driving further motivation to ensure you are doing what is right by your financial life.  Before it is too late, ensure you can avoid making money mistakes now so you will not have to regret later.

Renting vs. Buying

I was a fairly independent young adult, so I was ready to move out on my own outside of college, probably too soon, in fact, that I spent years renting instead of buying my starter home.  While I would not trade the great times, I had with my roommate and best friend, it would have been nice not to have thrown money away on rent for two years instead of towards equity in a home.  Looking back, either continue to live at home until I could buy a house.

Being “House Poor”

While it is great to invest in real estate, sometimes you can get over your head and buy the biggest and the best and have most of your income taken up by the mortgage payment, not leaving much left for anything else, hence being house poor, so to speak.  You can own and live modestly, while freeing up more money to have fun, afford expenses comfortably, and save, save, save.

Not Having Money for Unexpected Charges

If you had major car repair, had to purchase a new furnace, or worse case, lost your job, how would you be able to afford without putting on a credit card and sending you into debt?  Experts have said that you should keep at least three months’ worth of expenses in an account in case you need to access later.  You probably want to avoid putting too much in there though, as it could be better suited an investment account, earning more than the tiny interest in a savings account.

Never Using a Budget

A Budget is a great way to track every dollar coming in and going out.  If you can set allocated funds for bills, food, gas, spending, as well as contributing to savings account, you can continue to free up extra money as you reduce unnecessary spending.  If you review the previous month’s statement, you can circle necessary vs. unnecessary spending, and add up those that could have been avoided and you could be surprised.

Forgetting to Build in Life Experiences

Speaking of a budget, while you do factor for all spending, it is important to budget for life experiences, as they are important to not only your sanity, but enjoying life.  If you can plan vacations, concert and sporting event tickets in advance, you can still be able to take part by planning in advance and not getting hit at once when you are ready to book.

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