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3 money decisions you shouldn’t be making

Being able to handle your money properly is important so that you can make the most out of it. Here are some mistakes you should avoid.

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Even if people say that it’s the root of all evil, money is still an important part of our day-to-day lives. Without it, we can never put food on the table or put a reliable roof above our heads. Because of its importance, it’s imperative for each and every one of us to know how to handle it.

Like any resource, money needs to be managed well if we are to harness its full potential. However, because of lack of money handling skills or simply a shortage of motivation to think and go into the details of financial management, many people make bad money decisions. We have outlined some of the most common.  

Not saving

Old folks say that we should save for the rainy days. However, when we take a look at how the world runs today, it appears that the rainy days are not the only reasons for saving. Wise men and women also save for the bright summer days on the beach, away from the stresses of work life.

But a lot of individuals don’t see saving as an opportunity for them to get more out of life. For them, saving means depriving themselves of the money that they might as well enjoy now. This is a huge mistake because you will eventually end up very constrained with your options.  Sometimes, a delay is necessary so that you can gain momentum and enough buying power to go for the bigger deals. A three-star accommodation now can be transformed into five-star luxury in three to four months. If managed well, money is one of the few things that really ages gracefully. Take advantage of this by saving.

Letting credit scores go from bad to awful

Because the next point will talk about loans, it’s necessary to make clear here that loans per se are not bad. In fact, they provide comfort and relief especially in times of financial struggle.

money

Don’t let your credit score to get from bad to worse. (Source)

Speaking of loans, you need a good credit score to get them. Now, a lot of people don’t understand this; they just let their spending and debts go out of control. Some overuse their credit cards. Some get multiple items on loan, one after the other in very short intervals. This results in a situation where a bigger chunk of their income is given up for debt servicing, making their lives a bit tighter.

But having a bad credit score is not really the end of the world. There are lenders who provide car title loans that can surely help. How do title loans work? Easy; it’s as if you’re pawning something. You get money, but you leave your car title with the lender as a guarantee of repayment.

Getting payday loans

A lot of professionals turn to payday loans to make ends meet. But a person who keeps on getting payday loans is showing symptoms of an even bigger problem: they are routinely living well above their means. Now, it’s not really bad to dream and want a better life for yourself. But you have to understand that buying the life that you want with the money that you don’t have is not really the best way to go. It will only bury you in debt and even take you farther from your goal of getting financial freedom.

Born2Invest is a digital news organization dedicated to writing about and publishing the business and financial affairs of the world. Our goal is to bring you the latest headline news and features of events and issues happening around the globe.

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