7 Financial Mistakes You Might Be Making Right Now
February 28, 2021| Peyton Sawyer
Many have already pointed this out but it bears repeating: how much you earn matters less than how you spend when it comes to building financial stability.
Here Are 7 Common Financial Mistakes People Make
1. Overspending on Food
The undefeated champion on the list of common financial mistakes people make is overspending on food. Consider the amount of food waste in America. Add how much is spent on takeout, restaurants, brand name food, and you’ll see just how often you’re tricked into overpaying for food. Try to cook more at home, choose generics over brands, stock your freezer and pantry on sales and/or bulk buy, and treat eating out as an opportunity to socialize instead of an everyday affair. You’ll notice changes in your budget soon enough.
2. Overspending on Your Vehicle
You’ll see this one on the most common financial mistakes list as well. If you’re going for the design over utility, you’re bound to overpay for your car.
Instead, choose a good used car that’s fuel-efficient. That way you cut down both on car payments and on gas.
3. Not Budgeting
There’s no way around this one. If you want to take control of your finances – you need to budget. Your budget needs to be set up with needs, wants, and savings in mind. A popular financial trend these days is 50/30/20 – i.e. 50% of your paycheck going to needs, 30% to wants, and 20% to savings, but if you can re-adjust it according to your circumstances (maybe your necessary expenses are more, and you can’t save that much).
What matters is to turn budgeting into a habit.
4. Not Tracking Your “Fun” Spending
This is one of those financial mistakes that is often ignored but makes all the difference when taken into account.
Take a good look at your leisurely expenses – subscriptions, takeout, activities, etc. What could you cut out? What can you re-adjust?
You should have fun money in your budget – but just because you can afford to spend, doesn’t mean you should.
5. Not Having an Emergency Fund
If you were to ask financial experts what’s the #1 on the list of financial mistakes people make, it would be this one. Most Americans live paycheck to paycheck, which is equivalent to having no foundation when trying to build a house.
You need to save up around 3 to 6 months’ worth of your expenses before you start doing anything else with your money.
6. Not Investing
Unlike emergency fund, investing is one of those financial mistakes that has experts divided. Some feel like investing while you’re saddled with debt is among the biggest financial mistakes you could make, some think not starting to invest, at least a minimum, amount even while in debt sets you back by years.
We’d say you have to strike a balance – start investing little by little and max out your employee contributions for retirement. Not taking free money under the pretext that you’ve got big expenses? Now that should definitely be on the list of common financial mistakes one should avoid.
7. Not Being Smart About Debt
People are divided when it comes to debt: some take on too much, while others are scared of it and never utilize it.
And both of those approaches lead to people making financial mistakes.
Some debt is good. What matters are the circumstances and the amount. A mortgage you can comfortably pay off or title loans when you’re in an emergency, for example, are good debts.
What Makes A Title Loan A Good Debt?
A mistake many make when they apply for a title loan is abusing it. Title loans are some of the easiest loans to acquire since there are only a few requirements to satisfy. As long as you’re a legal adult (over 18 years old) who owns a vehicle and has that vehicle’s title in their name – you’re eligible for the loan. As long as you have some kind of income, even your bad (or non-existent) credit score won’t matter since Idaho Title Loans won’t be paying attention to it in the first place.
This makes title loans appealing for people who want to get easy money. What they tend to forget is, just like any other loan, a title loan will need to be repaid – so adding them to your financial obligations isn’t a smart choice unless you have an emergency to handle.
Applying for a title loan is an optimal choice for those who have to deal with a problem which will exacerbate if not handled immediately – a car breakdown, an ill pet, a toothache.
When time is of the essence, the swiftness at which you can get a title loan is a great bonus – if you get approved, you’ll get money the same day.
How To Get A Title Loan Online:
- You need to fill out the online form you’ll find on the website.
- Pay attention to your phone so you don’t miss the call from the loan representative.
- Take your car, your lien-free car title, and your government-issued ID to the meeting set up by the loan representative.
- Wait for them to assess everything and determine if you qualify for the loan.
- Get approved and get the cash.
The entire process lasts on average 30 to 40 minutes.
Don’t continue to make these financial mistakes, make the changes you need today. Finances are stressful enough without having to make the hardship worse. And remember, Idaho Title Loans Inc. is here to help if you need fast title loan cash today.