7 Common Financial Mistakes That Are Holding You Back
If you’re living paycheck-to-paycheck and tend to look for loose change around the house by the end of the month, then you’ve definitely come to the right place. And you are definitely not alone, as according to multiple surveys, 60% to 70% of Americans live like this.
So, if you’ve ever turned over the couch cushions in hope of finding money, then you’ve been making some financial mistakes along the way, my friend.
Here are some of the most common financial mistakes that keep people chained to that paycheck-to-paycheck lifestyle with no security:
1. You Don’t Budget
The first and most common mistake is not knowing where your money goes. You might be doing a good job paying for what must be paid (rent, utilities, monthly minimums on debt, etc.), but the rest of your money has no purpose.
Even if it feels like you spend money only on groceries, you rarely look at how much it costs you. Are you really going to eat all that you bought on your last trip to the store? Statistics say it’s not very likely.
Setting up a budget is the first step to take control of your finances.
2. You Don’t Track Your Spending
Or maybe you do make a budget, but you just keep spending until the budget is up.
Controlling your money doesn’t mean just knowing how much a month you can spend on groceries without going hungry, it means knowing exactly how much you spend on each category – and how you could cut it.
Even if you can spend a certain amount comfortably, ask yourself – should you? Or maybe you could spend less and more purposefully and use what is left for savings.
3. You Indulge Far Too Often
There’s nothing wrong with getting a coffee at Starbucks or a takeout lunch every once in a while.
The problem starts when you do it daily. Yes, even if it’s something you can afford.
This is where the budget comes in: allocate funds for occasional indulgence and no more. And when those funds are up – they’re up, don’t roll the money over from other categories.
4. You’re Trying to Keep Up with the Joneses
Instagram makes it seem like we’re surrounded by the proverbial Joneses.
Well, guess what, the Joneses are likely broke and living off of credit cards.
While couture clothes, expensive vacations, and luxury cars look nice, just a fraction of Americans can actually afford them. The rest take on extra unnecessary credit.
And no, you don’t need it. If you want a vacation – you can make a sinking fund for it. Luckily for you, the internet knows just as much about making budget vacations unforgettable as luxury ones. Get googling.
5. Your Car Costs Too Much
Speaking of cars. How much is yours worth? And better yet, how new is it?
Buying a new luxury car isn’t something to be proud of, most experienced car owners say. It’s one property that starts losing value the moment you drive off in it.
Skip the luxury part and buy a solid used car with the monthly payments you can comfortably afford.
Just maintenance and gas will save you enough for the trade-off to be worth it.
6. You’re Not Saving for Retirement
It might not seem like an urgent issue now, but the time will come when you’ll regret not saving for your retirement.
Yes, even if you’re in debt. If you’re uncomfortable investing while saddled with monthly payments, at the very least, max out your (Roth) IRA.
7. You Don’t Have an Emergency Fund
Most Americans wouldn’t be able to come up with $500 on the spot if they were to encounter an emergency – and most emergencies cost more than that.
Another pitfall? If you postpone dealing with them, they will likely cost you even more down the road.
So, the first thing you should do with the money you’re able to save thanks to your budget is set up an emergency fund that can comfortably cover at least a month of expenses.
But if you’ve got an emergency to deal with right now – better take out a title loan, instead of waiting until the money comes your way.
Why a Title Loan?
If you’re a car owner, then home title loans are the easiest and quickest fast loans to acquire. All you need (aside from the car) is to be of legal age (and have a valid ID to prove it), a car title in your name (it should be lien-free), and an active bank account with some sort of income.
The lenders have little care for your credit score, so you can apply even if it’s bad or outright nonexistent.
How Do I Find Home Title Loans Near Me?
The easiest way is to apply for title loans online. Go to the At Home Title Loans homepage and use the online inquiry form to apply. A loan representative will contact you and set up a meeting with a verification agent.
The agent will verify your documents and have you sign some forms if you get approved. The money will be deposited in your bank account the next business day.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.