Most people struggle unnecessarily with managing their finances. The thing is that a few simple rules can make a big difference. It is time to evaluate how you manage your money and what you can do to improve it.
Over the years there have been many recommendations to consumers on how to manage their money. The simplest one is to “Spend less than you earn”. Another is “Pay yourself first”.
You need to own your financial failings and find solutions to resolve these failures.
Investopedia has written an article, Top 10 Most Common Financial Mistakes. These are the mistakes that may lead you to economic hardship:
- Excessive and frivolous spending
- Never-ending payments
- Living on borrowed money
- Buying a new car
- Spending too much on a home
- Misusing home equity
- Living paycheck to paycheck
- Not investing in retirement
- Paying off debt with savings
- Not having a plan
I would recommend you read in detail each of these financial mistakes in the Investopedia article.
Then it should be time for you to list just the top three financial failings you are making. These are financial failings that are holding back your ability to have a comfortable financial lifestyle now and in the future. The aim would be to address these top three financial failings first and then work your way down the list, picking two or three at a time.
One item not listed that I think is essential is to educate yourself. Have a mission to read one book about money management every two to three months. Check out my Good Financial Reads (Financial Mappers Blogs). The most recent review is called Buying Happiness by Kate Campbell. This book will show you how to have financial contentment both now and in the future.
My personal all-time favourite is Twenty Good Summers by Martin Hawes. His tag line is:
“Work less, live more and make the most of your money.”
I think that is something we would all like to do. The first edition was published in 2006 and is still in print today. I highly recommend you read this book.
Over the next few months, I will address each of these mistakes in detail. However, over the past few years, Financial Mappers has always stressed the importance of making a Financial Plan. Check out some of the articles written by myself and guest bloggers.
This short video explains why you need to make a financial plan.
Make a Financial Plan
Glenis Phillips SF FIN – Designer of Financial Mappers and Advice Online
Check out these additional articles I have found for you.
- The 5 biggest money mistakes people make (BOQ)
- The biggest money mistakes that could change your future – and how to get ahead of them right now (CNBC Money)