Trick or Treat: 4 Spookiest Money Mistakes
Halloween and finances share uncanny similarities. But what’s scarier than the ghosts of the financial world?
If there’s something truly terrifying yet delightful all year round – it’s our finances!
We all rejoice when markets swing well but tricks like inflation send chills down the spine. The financial decisions that still haunt you up to this day is a different kind of story.
Don’t fret if you have a complicated relationship with money. There are lessons that can improve how you handle your finances. Here are money mistakes to avoid and some tips to conquer them.
- Living without an emergency fund. An emergency fund is your lifeline to unexpected events like medical expenses, home repair, and job loss. Living without sufficient and proper funds can be risky because you will be forced to rely on other sources of money such as credit cards and informal lenders.
While saving can be difficult especially because of the expensive prices of goods and services, keeping enough money at bay will protect you from personal financial emergencies. Start small by putting aside a portion of your salary and make it a habit.
Not saving for the future. This is one of the common money mistakes. Financial planners say that delaying plans for retirement can affect one’s overall financial security—cost will be high and opportunities will be missed. As early as now, kickstart your retirement bucket so you have more time and funds to design a foolproof portfolio.
- Excessive spending. Many fall victim to “lifestyle inflation” or the situation where one’s income increases and their spending also increases. When you perceive luxuries as necessities, you tend to allot more budget for your wants rather than your needs. Remember: these instant gratifications will only bring short-term fulfillment. Overspending can seriously disrupt your journey towards the Happy Path.
- Not having a solid financial plan. Financial security isn’t something that happens in a snap of a finger. You should know where you’re heading and when you want to arrive at your dream destination. Your plan doesn’t have to be perfect because you can always revise it (goals can change over the years, right?)! Have a monthly or quarterly financial check-up to monitor your progress.
There are a lot of money mistakes and financial horror stories to note. If you don’t want to turn your dreams into a nightmare, start managing your money right now!