Is Your Financial Freedom Being Compromised By These 6 Little Mistakes?

Is your financial progress stalled or going backwards? Debts increasing by the day? Maybe you're guilty of these mistakes without knowing it. The mistakes listed below are designed to help you understand where you may be going wrong, and how to get back on track quickly. You can be on the road to debt freedom today.
Mistake #1. Not Living Within Your Means. This maybe the root cause of your worry and distress. If you are earning less than you are spending, whose money are you really spending? It's the credit card provider's or the bank's. The cost of this money is interest and associated credit charges.
Fix it this way - Commit yourself to spending within your income limits. Maybe, you could increase your income (or cash in) by applying for a higher paying position, or sell some of your unused articles or assets. Is the under-used second car a necessity? What about making your hobby turn a profit? Why not also find ways to reduce your spending? What about saying no to the daily bought coffees? Why not make your work lunch at home each day rather than buying it? Commit to only buying the necessities - not the fad and fashion items.
Mistake #2. Only Paying the Minimum Credit Card Repayment Each Month. If you are like lots of other folks, and pay only the minimum balance each month, the interest on the interest, and the other credit charges makes those purchases, oh, so expensive. Get this debt under control, and your life will be much easier.
Fix it this way - Work out creative ways to find more free cash and apply it to the credit card loan as soon as possible. It won't be paid down overnight, just as the debt didn't happen overnight. If you don't make a start now the balance may spiral out of control. Stop the rot now. By diligence and commitment, you'll get there.
Mistake #3. Not Understanding Your Real Financial Condition. If you don't clearly understand your financial position, how will you know what to do, to fix it? The most widely advocated and tested method is the personal/family budget. This is a simple task. Please don't give up now. Just follow these simple steps:
Fix it this way - a) Get out your latest credit card statements. Add up all the unpaid balances. b) If there is any other unpaid debts (not home or car) include these balances as well. c) Calculate your (or family) monthly income (just the amount brought home each month from all sources). d) Calculate your monthly spending. Work out where all the money goes. Don't leave any thing out. e) Take the monthly spending total away from the monthly income total and review the answer. Is there a positive or negative balance? This will give you an initial idea as to whether you are living within your means or on borrowed money.
Mistake #4. Not Putting a Stop to Increasing Debt. Debt has got you into this situation. Unless you stop adding to the debt balance, how will you survive?
Fix it this way - destroy the credit cards, keeping only 1 for emergencies (maybe). Only purchase items that are really needed. Don't buy anything until you've asked yourself, two or three times "Do I really need this?" Don't buy items at the height of the fashion or fad. Wait a little time for the demand to slow, the prices will be lower. Never pay full retail for anything. Get it on sale or negotiate a lower price with the retailer.
Mistake #5. Not Saving Any of Your Income. There are serious financial risks attached to this strategy How will you fund emergency items? What about major electrical appliance repairs. What about a car replacement? How are you going to pay for these? With another loan, or an increase on your credit card? Bad idea!
Fix it this way - Once you've prepared your budget you will clearly see what you need to do to put some income aside for other needs. Life is a gamble. You need to have some funds put aside for unforeseen events.
Mistake #6. Not Planning for Your Financial Future. Unless you know you are saving sufficient funds to address your financial future, you cannot be really happy. The worries playing on your mind regarding your ability to meet unforeseen events will rob you of real happiness. It can be very rewarding to see how quickly your savings multiply over time with only a small investment each payday. Start saving today. Just a few dollars a day is a good start.
Surely, it's worth a little effort to get your finances into shape, isn't it? Why not make a start today?

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