Habitual money mistakes that may seem trivial right now can blow up your finances down the line. Among other daily mistakes like impulse buying, here are three of the most common money mistakes people make.
- Leaving no room for comfort spending
While saving money is a smart financial behavior, solely focusing on budgeting while maximizing your savings leads to inevitable burnout. The security of a savings account may seem like a life or death necessity, but it may ultimately lead to missed social connections.
Worrying too much about the amount in your savings accounts means missing out on once-in-a-lifetime experiences. Instead, learn to make space in your budget for comfort spending and overcome the guilt that comes with it.
- Not keeping track of your spending
Healthy as it is to enjoy the money you make without the urge to save every last cent you can spare, the inability to track your spending is another mistake drowning your finances. Spending management lets you decide what’s worth it and what isn’t.
Cultivating spending awareness can significantly impact your finances. For example, consider cable TV instead of subscribing to Netflix for hundreds of dollars per year when you only watch it twice or thrice monthly.
- Financial Infidelity
Lack of communication in a relationship about future goals is a typical mistake that eventually snowballs into a huge problem. Financial infidelity is among the leading causes of failed marriages today.
Learn to ease into money-related conversations with your partner by asking hypothetical questions. Start by discussing hypothetical situations about retirement and vacations. It eliminates financial tension and creates a safe space to talk about immediate situations.
- Impulse Buying
Rushing to buy things too fast or impulse buying is often emotional. Marketers tap this unhealthy behavior to boost sales, especially big-ticket items like cars and jewelry.
To get control of this money mistake, try sleeping on it for 24 to 72 hours before making an impulse purchase. A recent study suggests that we’re more likely to make better decisions for our future selves.
At TetonPines Financial, we understand that some habits are harder to break than others, especially those money-related. Contact us today to learn financial literacy.