You have probably heard over and over again what to do with your money. Do this and this and so on. Have you ever thought about it from the other side? What is the worst thing you can do with your money? Here are some mistakes that if you avoid you will be thankful you did.
The first money mistake is not having an emergency fund. No one can know what the future will bring and having an emergency fund is like having a safety net under you while you are tight rope walking, you need it. An emergency fund will help you avoid a lot of stress when something happens. With it you have maybe not all the money but at least some to deal with what is going on. Do not make the mistake of not having an emergency fund.
The next money mistake is neglecting to make a will. Without a will the state will decide what happens with your finances, kids if you have them, and stuff. This can cause a big problem should something happen. Your family could end up without anything of yours or any way to take care of your funeral. If you have children it is even worse. The state can decide if they go intofoster care or to a family member. Create a will and revise it regularly.
Do you have enough insurance? Not having enough insurance is definitely a money mistake. Whether it is life, health, home, or whatever you need to make sure that you have enough. If you do not know if you do or not, talk to your insurance company. Tell them what you need and what you do not need. Having insurance that you do not need is just as bad as not having insurance that you do need. Take some time to figure out what you need for what kind of insurance, and talk to your insurance company
Being deep in debt is another money mistake. Getting your debt paid off is the first step toward financial freedom. Debt can affect many different areas of your life, so you want to make sure that you do what you can to get it paid off.
Over spending is one money mistake that many people do not think much about. All too often people will go out shopping and spend more money than they should. All that results is them say they spent too much. Not often do they actually sit down and think about the complications of spending too much. Watch how much you spend when you go out. Do you need the new things or do you need to save money?
No one wants to make money mistakes. Often we make them without even thinking. There are easy things to do to make sure you are not one of the people out there who make those money mistakes. They are not hard things to do; you just have to make sure you think before spending or making a purchase of any kind.