Are You Making These 3 Mistakes With Your Money?

 When it comes to managing your money, there are some things that you have to know how to avoid.

The starting point usually involves taking a closer look at your money habits to identify and eliminate those that are working against you. This article covers 3 common mistakes that people make with their money.

If you always find yourself short of money and you wonder where all your money goes every month, you are probably making one or all of these mistakes with your money.

1.  Spending in anticipation of earning

Do you ever find yourself spending money which you believe you will replace after you have been paid by someone else within a few days? Spending money you have not yet received can easily get you into debt.

What happens if you do not get paid or if the other party fails to honor their obligation? Conservative as it may sound, you are better off spending money that you have already received in cash.

2.  Lending your money to people who don’t have a repayment plan

If you go to your Bank and ask for a loan, the first thing they will ask you for is a repayment plan. If the plan in sound and you have a good credit rating, securing a loan should not be very difficult.

How many times have you lent your money to someone else without conducting a similar analysis? If you have a list of people who owe you money, some of whom are not likely to pay you at all, you need to start lending only what you can afford to lose.

3.  Borrowing to keep up with your lifestyle

Attempting to keep up with the Joneses is one of the main reasons why people accumulate bad debt at an alarming rate.  It is always easier to spend borrowed money in ways you would never spend your own.

I agree that we all deserve the good life but we have to earn our way as opposed to borrowing irresponsibly.

Your financial results express how you really feel about money at a subconscious level. Perhaps that is the reason why most people who find themselves in a financial mess are simply not aware that they are making these mistakes.

Ultimately your success with money will depend on your mindset. Without changing your mindset, any changes you may attempt to improve your finances will be temporary.

As soon as you develop a sense of accountability for your money, you will start seeing different results.

By the way, if you are having trouble managing your money, you can click here to grab a copy of The Money Management Blueprint.