For many of us, navigating our finances is something we just don’t do as often as we should – if at all! This leads to misstep after financial misstep, and it can make dealing with your finances feel stressful and pointless. However, there’s a lot to gain from learning to navigate the waters of financial responsibility – and once you get the hang of it, it can take a huge weight off your shoulders.

Excessive Spending

We enjoy spending our money: it’s why we work to earn it. However, there comes a point where everyday indulgences are out of hand, and it can lead you to feeling like you’re worse-off financially than you need to be!

When it comes to spending money, moderation is key. Going out for a coffee or to see a new movie is fine, every once in a while. Dishing out four dollars a day on Starbucks means you’re spending over a hundred dollars each month on hot coffee drinks. Is it really worth it? Set yourself a weekly or monthly allowance, a number you think is reasonable within your means, and stick to it. You’ll enjoy having the extra cash when you really need it.

Borrowing Money

Living off of borrowed money is never a good long-term solution. The upfront cash a credit card offers might sound great when you’re eyeballing a new car or holding an armful of designer clothes, but there’s no getting around the fact that you’ll be losing money in the long run. It’s how credit card companies stay in business!

That goes for most money-lending, in fact, not just credit cards. If you can ever avoid borrowing money, you’re probably better off doing so. If you do want a credit card, say for building credit, then keep the monthly spending on it to a minimum, and use it for small things: gas, for example. That way the amount you owe never gets out of hand.

Too Many Payments

Rent or mortgage, phone, cable, power, water, car, streaming services, gym memberships: the list of things that require a monthly payment are on the rise in our modern world. That means that there’s a lot of services available, right at our fingertips – and it’s easy to get carried away with it.

If you’re having difficulty staying in the green, take a look at your list of subscriptions and other monthly payments. Don’t shell out twenty bucks a month for a gym membership you use maybe once a year, and don’t keep your Netflix account active just in case someone recommends a show you might check out. Trim your monthly bills down, and you’ll fatten your savings account at the same time.

Living From Payday to Payday

Many financial advisors recommend a buffer of three to six months’ worth of expenses in case of an emergency – easier said than done, right? However, if you follow the tips above to trim unnecessary or frivolous expenses from your budget, you will probably be surprised with how much extra you have at the end of your month. Take this excess and put it back, and the next time your engine light kicks on or your company lays you off, you won’t need to panic about how to make ends meet.

Avoid these common financial mistakes, and you’ll be able to check your bank account without dreading an overdraft fee or a bounced check. It’s your money, so let it work for you, not against you!

Common Financial Mistakes