No one is perfect with managing their money, but some people are worse than others. In my days, I’ve seen some pretty stupid stuff. I’m not saying that I don’t expect people to make mistakes, but there’s a difference between learning from your mistakes and not. If you are looking to improve your financial situation, one of the best ways that you can do something about it is to learn what NOT to do. The path to financial success is sometimes learning to avoid certain mistakes. Here are a number of things you should not do.
Bury Yourself in Debt
Regardless of whether it is student debt or fast payday loans, taking on too much debt with no plan to pay it back will put you in a bad position. If you want to set yourself on the track to success, think long-term. Before taking out a loan, ask family members for a short-term loan, but before you do so, make sure you plan to pay it back. The last thing you need is to destroy your support system.
Pay Your Bills Late
Another thing that can ruin your finances is paying your bills late, even when you have the money to pay them on time. Not only will you build up late fees, but it could lead to further inconveniences like losing power or water. The last thing you want to do is to waste hours trying to get your power back on because you simply forgot to pay your bills.
Settle at Your Current Job
At my first real job, my co-worker had been there for 5 years. He was closing in on 30 and had no motivation to move on. It’s not like he enjoyed his job either. He spent most of his time surfing the internet. He also was working for something like $30k a year. That may be fine when you are starting out, but when you are 40, that is going to hurt. Don’t let yourself get comfortable early on in your career, especially if you don’t enjoy your job.
Believe it or not, there are many ways to ruin your finances. It doesn’t take a genius to do it. But, if you pay attention to your mistakes and learn from them, you will be much further ahead than the guy or girl next to you. As I said, sometimes financial success is not about being perfect, but minimizing your mistakes.