Money Mistakes: Avoiding Disaster
Many women and men alike, have big hearts, good intentions and want to continue to do well financially. Unfortunately, as human beings, we often live in the moment. This is not a bad thing, however, it is not so good when it comes to money. Just because something in your life is going well in the here and now does not mean it will be the same a few months down the line. Many people make financial decisions without putting a lot of thought into the consequences and what ifs. These little mistakes could lead to a lot of hassle and financial disaster that will take time, effort and more money to unravel.
It is a much better idea to be in the know and to consider the steps you take with your money and financial future carefully before diving in head-first. Listed below are some common mistakes people tend to make. These are some of the aspects you want to think twice about.
Thinking Bankruptcy or Debt Consolidation Will Fix it All.
Yes, bankruptcy and debt consolidation are good options to help you get out from under a mountain of debt you can not possibly afford. It can relieve the financial stress immensely. However, It won;t take care of everything. You will still have bills to pay, and not all debts will always be discharged in a bankruptcy. With consolidation, you’re still going to have to pay, just at a lower rate.
If you are experiencing financial troubles, it is time to look for other resources to ease that burden. A new job, second job… increasing income can help. Go back to school if you need to. If none of these are an option, think about state aid. There’s no shame in asking for help if you have a family to care for and just can’t do it. That’s why state aid is there. Some taxpayers might put you down, but hey, they’d be singing a different tune if they were in your shoes. Also consider getting some credit counseling to help you learn about budgeting, saving and managing the money you do have.
Pooling Financial Resources with Someone Else
When you’re married, it is acceptable to pool your financial resources. However, it’s not a good idea to do this if you are in a relationship with someone you are not sure about marrying or even with a close friend. One person’s irresponsibility could hurt the other financially and could also destroy the relationship or friendship. Don;t share bank accounts or credit cards with anyone except your spouse and only after the marriage has occurred.
Emotions and Money
Never let your emotions take the lead. Make financial decisions only when you are feeling good and never run out and start spending to try and fix your mood. It’s a temporary fix, at best, and if you think you felt bad before the spending spree, just wait until you see the bill or start struggling later because of it.
When a Relationship Ends, Financial Ties Should End Too
If you have been pooling your financial resources with another, and the relationship, friendship or marriage comes to an end, do not forget to sever all financial ties. If the other party is v8indictive, you could pay for it. If they are not being responsible, you could pay for it. Get rid of all joint accounts and debts, as quickly as possible, paying anything you already owe, of course. The relationship ended for a reason. That is enough cause to end the financial links as well.
There are lots of other money mistakes that people make, however, these are so common and lead to so much financial angst that they are worth discussing in detail.
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