Safeguard Yourself Against Debt by Avoiding these Money Mistakes

Avoid these money-saving mistakes and start your journey towards financial freedom.

It’s fair to say that we’d all like to have more money, but how do we get there? How do we navigate the treacherous waters of overspending and credit sharks? Let’s take a look at a few common money-saving mistakes and how to avoid them.

Money mistake 1: Not having a budget

A great place to begin if you want to save money is to set up a budget. Having a clear overview of your income and expenses means you will be able to calculate exactly how much you’re able to save.

Money mistake 2: Not having an emergency fund

Rainy days come more often than you think and unexpected expenses can creep up on you, catapulting you into debt. Being prepared with an emergency fund is key to avoid going into unnecessary debt.

Money mistake 3: Excessive spending

One of the quickest ways of ending up with financial troubles is overspending. Yes, it is always tempting to get the latest and greatest of everything, but it’s definitely not worth going into debt just to be on-trend.

Money mistake 4: Living on credit cards, loans, or an overdraft

With so many buy now pay later offers it’s often hard to resist going into debt. However, if you’re spending more than you’re earning you can end up in a sticky situation, sooner than you may think.

Money mistake 5: Not saving enough or at all

This may seem obvious, but actually setting up an account that is dedicated to saving money is an essential part of money-saving. It will get you into the habit of setting some money aside for saving and you’ll be able to earn some interest. A great tool for saving is long-term notice accounts such as a 7-day notice, or even a 32-day notice account. This means that you’ll have to give the bank notice in advance before you’re able to withdraw which can decrease impulse buying. These accounts also often have higher interest rates than traditional savings accounts.

Money mistake 6: Not being honest with yourself about your finances

You need to know where you stand financially so that you can be realistic about what you can afford and what not. Many people end up living beyond their means because they do not really have a clear picture of their financial situation.

Money mistake 7:  Forgetting to cancel subscriptions you don’t use

They always get you with a free trial. However, if you find that there are subscriptions that you’ve signed up for, but are no longer using, cancelling them can be a simple and effective way of saving a few bucks. Remember, when it comes to money-saving, every little bit adds up.

Money mistake 8:  Not taking out insurance

Insurance may seem like just another expense, but it is definitely a worthwhile one. Not having insurance will most likely mean that you need to go into debt to cover unforeseen expenses.

Avoiding these money-saving mistakes will help you steer clear of overspending and ultimately running into trouble with debts that you can’t repay. However, if you do find yourself in a situation where you need help with your debt, we’re here for you.

Follow these simple money-saving tips

Here are a few great money-saving tips that are easy to implement.

Money-saving tip 1: Get some loyalty cards

Loyalty cards at some stores can give you great instant discounts. Or, if they’re ones where you get rewarded with points, you can spend those instead of your hard-earned money.

Money-saving tip 2: Use price-comparison websites

Knowing where to get the best deal is a great place to start if you’d like to save money. Of course, you need to ensure that whatever you’re spending money on is something you really need. Buying something just because it’s on sale is not wise.

Money-saving tip 3: Carpool if you can

Have a friend at work that lives close to you? Why not share a ride. It can be really fun to keep each other company in traffic; making your commute so much more enjoyable. Plus, you’ll be saving money on fuel, and by using your car less, increasing the longevity of things like your tires.

Money-saving tip 4: Buy in bulk and cook at home

Doing something simple like making your own lunch at home and not buying something when you’re at work may sound like such a small thing, but little savings add up. Avoiding takeaways and dining out, as well as buying your ingredients in bulk can result in huge savings over time.

Following these simple steps can help you keep your debt to a minimum. However, if you do want help managing your debt, we’re always here to help.