Changing money habits isn’t a magic solution to financial problems, but it certainly helps. However, before changing, you need to know where you are going wrong.
No emergency fund
The best way to avoid a personal financial crisis and incur debt due to unexpected expenses is to set up an emergency fund.
“An emergency fund should have enough money to last three to six months. Preferably an easy cash outflow,” says Julian House, financial expert and managing director of the financial website website. Myfavouritevouchercodes (England), advised.
Don’t know where the money is going
Spending profligately, refusing to check the bank account balance but only hoping to have enough money for the things you need is a recipe for disaster.
Take some time to figure out exactly where your money is going by recording your income and regular expenses (rent, bills, loan repayments…).
You also have to work out how much money you have for different things, such as travel or a fancy party. Then track your spending to see what’s spent to make the right changes.
Loyalty to expensive brands
Stop spending money on things that don’t make a real difference in life. Do you have to eat first-class ketchup?
Try a product and service one level cheaper. If it still looks good, you should buy it. Next time you need to buy that type of item, try switching down to a slightly cheaper one. If you get bored, go back to the product you used before. If you like it, you’ll both have fun and save money.
“If buying the same product or service from another brand is a little cheaper, of course you have to choose. Energy, insurance, phone prices keep going up. You’re ruining your wallet if you don’t check it out often. other options but only loyal to expensive brands,” said the expert.
Struggling with mortgage payments
Experts of Myfavouritevouchercodes Even if mortgage payments are cheaper than the average rent, buying property should still fit within your budget, not your property-owning ambitions.
“Stressing on mortgage payments is a one-way ticket to a lower quality of life. At this point you will be forced to sacrifice your desires for something else,” the expert said.
Buy a flashy car
Financial experts all agree, if your income is not satisfactory, you should not buy an expensive car just because you like it. You can buy a brand new car, drive 10km home, drive 10km back to the dealership the next day, but only sell it for much less than the purchase price.
“Save instead of buying a flashy car. However, remember, investing to increase assets or invest in education is the smartest choice”, experts said.
Intelligent Update (According to Metro)