When it comes to money, we all make mistakes. Fortunately, many of us make the same mistakes. Here are three common mistakes and ways to avoid them.
- Poor budgeting. With a short term budget, weekly or monthly, we tend to underestimate our expenses. Forming a yearly budget tends to cause people to add to their expenses because they are more unsure of their figures.
- Overpaying for housing. Traditional advice says to spend about 33% of your income on housing. That is too much for many of us. Something along the lines of 20% is more realistic if you have student loan debt, child care expenses, and car payments.
- Poor use of debt. The perils of too much debt are well known, but having too little debt can be just as crippling. The poor use of debt can tie your hands when you have a legitimate need.
Managing your money is tricky in the best of times. Just knowing about these common money mistakes is the first step toward getting a handle on your finances in the long run. If you’ve already made these mistakes, you may be a good candidate for debt consolidation in Bristol, TN. Fortunately, we can help.