Stupid Mistakes People Make with Money & How to Avoid Them!! I mean it seems like a lot of it is common sense but let’s face it we are all human right? We are faced with temptation every day to make big purchases and live outside our means as well. (I have included links to online shopping links that will earn this site a small commission) No one is perfect with money but there are some people who make some really stupid mistakes with money. Don’t fall into the “stupid money mistake trap” because you are likely to pay for it for many years to come. Avoid those stupid monkey mistakes with these tips.
Taking Out High Interest Rate Loans
One of the biggest mistakes people make with their money is with high interest rate loans. It seems as though banks can get away with whatever interest rate they want, when it comes to giving someone a loan. Avoid the interest rate trap by working extra hard on your credit score before you need to purchase something. Also, know exactly what your credit score is before you anywhere to make a big purchase.
Buying Brand New All of the Time
There are some instances where you should buy new, like food and undergarments. However, buying brand new for every single big purchase you make isn’t smart. When you drive a brand new car off of the lot, you are basically saying goodbye to thousands of dollars. Buy a used vehicle, so that you can enjoy the savings, but still enjoy the newer car feel.
Living in an Expensive House
Another big money mistake people make is purchasing a very expensive house. A house that they can’t afford to pay taxes on or make basic repairs on. Some people even have a problem paying their monthly mortgage. You can avoid living in an expensive house by knowing your income inside and out. Know exactly what you can afford.
Investing on a Whim
The average person doesn’t understand how to invest and that’s okay. However, investing without knowing what you are doing can cost you financially. Make sure you talk to a trusted individual about how to invest properly.
Don’t Have Proper Insurance
No one likes paying for something they “might” need later. Insurance is one of those things that you need for just in case. It’s not a matter of if you should; it’s a matter of YES you should. Even if you are renting, you should still purchase renters insurance. Things happen when you least expect it to, so make sure you’re covered with proper insurance.
Not Having 3-6 Months of Living Expenses Saved
If you were to lose your job tomorrow, would you lose everything? While you have a decent income, it’s important to save at least 3-6 months of your living expenses. This is vital because losing your job means no income and in return, you will run yourself into the ground financially using credit cards and loans.
What is one stupid mistake you have ever made with money?