5 mistakes that lead to financial bankruptcy and loss of savings
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Financial experts identify five mistakes a person might make and lose his savings and money that he set aside for life's pitfalls.
The Mexican site "Mai Pulsio" identified these mistakes by setting five basic points that should be noted:
1. Spend more money
— the site that people often tend to spend out of control.
Using credit cards without first checking whether we can pay for what we buy is one of the most common mistakes.
Therefore, learning to manage ourselves and live with the money we earn every two weeks or a month will be one of the best ways to avoid accumulating more debt.
In this case, you can do a personal exercise by making a list of the expenses that you have and considering whether the things you listed are really necessary or you can do without any of them.
If you do, you will eventually achieve the goal of saving, even if it is a small amount, which will positively affect your economy.
2. Reward yourself The
site stated that we often need to give ourselves some kind of "prizes" to feel enthusiasm as a reward for our work, whether it is buying something or a piece of clothing, and that will be a good thing as long as it is in moderation and not every two weeks or a month.
3. Paying your debts by borrowing.
The site added that, sometimes, we have debts on credit cards or with other people that we cannot pay and we make bad decisions such as borrowing to pay them.
This is not always the best option and it is better to try to get out of it by paying little by little and without the need to ask for credits, because at the end of the day you will have two obligations and getting out of them will be more difficult.
4. Not to save
The site pointed out that unexpected events are very common, and no one is immune to them, and this is the main reason that drives us to save money that can help us in these situations.
When something happens that we did not plan, such as an illness or accident, or other matters, and we do not have a reserve to cover it, it is likely that we will go to a relative or an institution that can get us out of the problem by assigning us a loan, which will cause your debts to increase, hence The importance of saving money is to use it in these difficult times.
5. Lack of additional income The
site explained that it is always good to have an alternative plan or a second option in the event that you lose your job at some point and remain without income.
The current epidemic is one of the best examples of this, as many people became unemployed unexpectedly, and the consequences were fatal given that they had no savings to cope with the situation.
In conclusion, the site highlighted that if you, for example, are good at preparing desserts and meals, among other things, or can provide a service in your spare time, this may enable you to get additional income or help you have another option to earn money If you lose your job.
Hence, having good financial habits can help you more than you think in tough times.
And although it may seem difficult to achieve, it is only a matter of managing yourself properly to achieve your desired goals.