Personal Finance Mistakes to Avoid and Why
Everyone wants to be financially independent but the discipline to do so does not prevail. The lack of discipline in managing personal finances lands people into financial constraints all through until they get their next paycheck. They have to frequent the bank to sort their financial needs. This can however be dealt with if in a family, people can let the responsibility of managing finances to one person to ensure that such inconveniences are contained.
Concern rarely extends beyond the next paycheck or two.
These are the people who live from paycheck to paycheck. Their next paycheck or two will cover the immediate bills. If there happens to be some money left over, it’s spent on frivolous things. These are the people who are constantly hitting the ATM to check their debit card balance so they know how much they have to spend or the people who juggle credit cards that are maxed out. The only thing that matters is the next paycheck and the brief breathing room that it provides.
Only one person in the family knows where the money goes.
Most families have one person that’s largely in control of managing the money – and that’s fine. It can be very useful to have a family “accountant” – a person that manages the checkbook, makes sure the bills are paid, and so on. This can actually be a very good thing, particularly if one person in a family is particularly detail-oriented.
Keeping debt at bay is a problem still unsolved to many. People often pile debts that haunt them in the end, and end up regretting not having dealt with the concern in time. There are a number of debts that Americans find difficult to clear from mortgages, car loans, to student loans that keep them straining to settle financially with large amounts of debts being yet their largest concern.
Accumulating too much debt
If $10,000 fell out of the sky and into your lap, how would you use it? Around four in 10 (41%) of those who participated in the Money-Rates survey would pay down debt with that money. High amounts of debt are a large concern for many Americans. Last year’s survey found that around one out of five people (20%) feel that accumulating too much debt is their biggest financial regret.
The average household’s credit card debt exceeds $7,000, according to Nerd Wallet. In addition to this debt, many Americans also have to worry about mortgages, car loans, and of course student loans. Last year’s Money-Rates survey also found that 8% of people feel that paying student loans is their biggest financial worry.
Financial constraints are a stumbling block when it comes to relating with others. Talking too much about financial hardships can potentially draw people away from you. This does not only strike down social relationships, but also the more intimate relationships as one may be mistaken to being under hallucination of misconception by their partners if they complain too much about money matters and difficulties that come with its deficiency.
Money problems make you unattractive
Do you complain about your money problems? Another big turnoff is discussing your debt at length, Coleman says, offering up this example: “Talking about your high child support payments and how this has impacted your lifestyle.”
You might think that sounds harsh. After all, shouldn’t your one and only care about the financial issues weighing you down?
Well, sure, especially if you’ve been an item forever. But if you haven’t been dating long, think about the message you’re sending.
“It’s never attractive to hear a guy constantly complain about things being expensive and what they can’t afford … It can make a girl feel like she’s being a financial burden,” says Ashley Papa, a New York City-based writer who pens pieces about relationships for Fox News Magazine, an online lifestyle publication.