Receiving your latest paycheck brings excitement and security. Being able to pay your monthly bills while also enjoying a couple of pleasantries is a good feeling. You’ve worked hard and are in possession of the “fruits of your labor.”
But make sure you don’t become too nonchalant with your money. Take care of your top priorities first before you spend your earnings elsewhere. There are definitely wrong ways to use your money, so be wise. Continue reading to discover 5 things you should avoid doing with your money.
Checking your online bank account is a very easy way to lose track of your money. Since payments are not immediately posted, your online banking service isn’t always up-to-date. Using it as the primary means to follow your spending is not necessarily wise.
Don’t lose sight and forget where your money is going each month. Use your own budgeting strategy to ensure that you know what bills are due on what days and how much they cost. Turning a blind eye to your money could land you in some deep financial waters.
Heading to the outlets or department stores while feeling sad or unalert should be avoided. During a state of sadness or depression, people tend to seek things that will make them feel better immediately. You may end up purchasing something you know you don’t need in hopes that it will alleviate your emotional state.
Make sure you go shopping with a level head so you can be alert when a salesperson is trying to manipulate you into buying something that you know isn’t practical. If you are feeling a bit down but need to run some errands, invite a friend along as an extra layer of accountability.
You may be one of those people that truly enjoy helping others out. It brings you just as much joy as it does others. But lending money to people you can’t trust is never a wise thing, even if they are family or friends.
Not everyone acts responsibly with their own money. If they have problems keeping track of their finances or spending it on unnecessary things, they certainly won’t be more diligent or careful with your money. This doesn’t mean you shouldn’t help others out, but understand the risks and possible consequences.
You may never see that money again, so you must be willing to accept that. If you are, think about whether its a wise decision to loan the money in the first place.
This should go without saying but it rarely helps. Why would anyone buy something they never intend on using? Well, it actually happens all the time. Purchasing a food item that you “might” try but truly have no intention of using occurs often.
Finding a good deal on something that would be “nice to have” although you don’t have any real use for the item is not uncommon either. Purchasing additional warranties for electronics when they already come with one from the manufacturer is another impractical decision.
Think about your purchases before handing over your debit card. Ask yourself, Will I ever use this? and Do I actually need it?
Website deals in which you receive a significant discount when you purchase from an online retailer are often implemented in order to clear out inventory for newer items.
However, it is very easy to get caught up in the “savings” that are being promoted. If you don’t need an item but see that it’s 75% off, you still need to spend 25% of the retail price to receive the item as opposed to saving the money because you don’t need it anyway. Purchasing something that isn’t needed regardless of the “deal” you are getting isn’t saving at all.
Avoid spending extra money just because of the amount that is saved from the original price. You’re better off pocketing the money and using it elsewhere in case of an emergency or unexpected future expense.