6 Financial Mistakes You Probably Didn’t Know You’re Doing | In In Financial Tips | By By admincashalo

It’s that dreaded time of the month again when you have to pay that sinister boogeyman called ‘bills.’ One quick look into your wallet gives you a momentary panic attack that’s more frightening than an encounter with the evil nun Valak.

Coming up short on funds is common in trying to make ends meet, even for a regular employee who strictly follows a budget. There are a lot of factors that contribute to finding yourself in this kind of financial situation, but the bottom line is you can do something to get out of it like getting an online loan .

Finding solutions to your financial troubles is relatively easy to do, and the best way is to avoid getting into it in the first place. Find out what financial mistakes you have been committing that you’re probably not aware of. As a responsible adult, you are accountable for correcting these mistakes so you could learn to grow and take a better financial path.

1. Not shopping smart

Shopping is a mundane task that everybody does on a regular basis, but doing it like a one-day millionaire will always be counterintuitive. With the tempting offers of shopping stores, it’s hard to let them pass when you see an item that catches your eye.

In most cases where you are not in need of a product, it’s always best to shop smart. The goal is to spend less than what it takes to purchase the product. It may involve waiting for the right time, like a sale or taking advantage of promos, coupons, and cash backs.

However, there is one caveat: discounts from sales, promos, coupons and cash backs may tempt you to purchase items that you don’t need just so you could take advantage of the lower price. Make sure the things you will be purchasing serves a need or else you might want to skip buying it until you are more financially capable.

2. Building a savings account isn’t your priority

Having a savings account is as important as having the supplies needed by an army that’s going to battle. It is the buffer you will need in case you need to dip into the proverbial money jar for emergency funds.

A savings account will always serve as your safety net so you won’t go completely broke. It is the foundation of your financial situation, so make it a top priority to save a certain amount from your salary to make sure you are always afloat.

3. Ignoring your debts

Debts are the shackles that keep you from being financially free, so it’s prudent to take action sooner rather than later. Ignoring it will cause your debt to pile up and affect your overall financial health. Start formulating actionable steps to overcome it.

You might think that even the small amounts you borrow from friends or co-workers when you go for snacks can quickly be paid off. What you don’t know is the longer you leave them accumulating, the more it can take over your life.

4. Stress-buying

When you are stressed out about work, something that happened at home or your love life, retail therapy is a great way to unload all that burden. But if you’re not careful, going on shopping sprees may result to an empty bank account. When you start to feel the urge to relieve stress by hitting the mall, remember that there are other ways to combat this.

Seek out a friend to vent or go for a walk or exercise—these activities might be just as effective as shopping. You won’t end up feeling bad about the wasted money you spent on things that you didn’t even need.

5. Not sticking to your budget

A budget is meant to keep your expenditures in check, so strictly sticking to it can help you avoid living from paycheck to paycheck or worse, convince you to start borrowing money. Failing to do so leads to financial instability, and this is not a place you want to be in.

Setting a budget and following it down to the letter will help you determine your net income, which is what you need to allocate accordingly.

To make it easier for you to create one and stick to it, you can download an app on your smartphone, so you have access to your budget plan at all times.

6. Not knowing when to be frugal

Frugality isn’t always the best way to save money. There are ways to be frugal without costing you more money later on. A good example of this is when you need to buy an item and you have to go for quality, so you can get more bang for your buck. This is quite common when purchasing inexpensive, but low-quality clothes. You think you are saving money initially due to the cheap price, but when you look at the bigger picture, these clothes won’t last.

Prevention will always be better than cure, so you will need to find out what you’ve been doing wrong when it comes to handling your finances. But when you couldn’t help but make these mistakes and the inevitable happens, there are solutions that can help you with damage control.