These major financial mistakes are made by many at the beginning of the year

These major financial mistakes are made by many at the beginning of the year

These major financial mistakes are made by many at the beginning of the year

Controlling financial affairs is one of the basic tasks that must be successful at the beginning of the new year, but there are mistakes and lapses that many make, at the beginning of January every year.

Hector Camizo says, in a report published by “Business Insider” magazine in its Spanish version, that when a new year comes, people feel the desire to renew and develop different financial strategies, in order to overcome their financial problems and improve their conditions.

The writer warns that there are some fatal mistakes that may make the new start in the current month doomed to failure, causing complications that may continue throughout the rest of the year.

Therefore, it is very important to identify these mistakes related to home economics, in order to obtain the standard of living that you desire, and not to overdo your savings and future projects. It is about healthy habits of managing money, which are learned and acquired permanently.

In this context, the writer adds that saving money is always the most prominent goal that many set when entering a new year, but at the same time it is the first test in which abandonment or failure occurs after a few weeks. What are the reasons for this financial failure?

Hobby costs

The writer says that everyone has a hobby that he prefers to spend his time on, and he has been attached to it and got used to it for years, but limits must be set for this hobby at the beginning of the year, especially since the cost may increase in the next stage.

Being attached to reading or music, for example, doesn’t mean buying all the books and albums you want. The same applies to sports and electronic games. Therefore, you should avoid excessive spending on these hobbies so that this does not lead to an imbalance in the financial budgets.

Drowning in debt

The report says that another mistake that many people make is not monitoring the financial accounts accurately. And the biggest mistake that can happen is drowning in the sea of ​​debt, as many purchases are made using the credit card during the Christmas period, without paying attention to the balance.

Therefore, the writer advises to avoid overburdening the credit card with exorbitant or unnecessary purchases and expenses, because this will mean having to pay off debts later while paying a lot of fees and interest.

It is advised to plan well for the budget, in order to avoid getting into trouble at the end of January, to monitor bank accounts continuously, and to evaluate the price of the goods compared to your balance before making a purchase decision.

Cuts trap

Discounts can be a good opportunity, but they create a lot of inconvenience. In general, people do not know how to take advantage of the sales period, as they buy things that they do not really need, and often they do so using money that they have not yet earned.

The period of offers and discounts can be an opportunity to achieve financial benefit and purchase your needs at the cheapest prices, but this must be planned in advance and the list of needs must be strictly adjusted, and not swayed by tempting offers and exceeding the allowable spending ceiling.

bad decisions

You should try to make a profit from your savings, as money should not remain stagnant, and this is one of the mistakes that some people make at the beginning of the year.

The writer advises to search for the appropriate investment to achieve profit, and those who are not good at making these decisions should seek advice from specialists, or obtain training in financial behavior.

There are many options in the form of investment funds and deposits that offer different degrees of profit and risk, in addition to entering the stock market or buying shares in a small company.

Small can become big

The writer points out that drinking coffee every day may seem easy, but when you multiply the price of coffee in 23 days and 12 months in a year, the amount will become huge. That’s why small amounts when they meet, they make a big amount.

Therefore, the writer asserts that the first month of the year is the best time to sit at the table and find a way to manage these small expenses and take action on them, such as reducing transportation expenses, getting rid of some household machines that consume electricity a lot, and searching for cheaper insurance contracts.

 

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