Money and financial pressure can take a toll on your family, marriage and personal stress levels…but it doesn’t have to! Understanding the mistakes some make regarding finances can help you better prepare your financial future. Here are the most common money mistakes according to Dr. Phil:
1. Believing in the Myth of Fixed Expenses: While, yes, some expenses are absolute necessities, there are ways to cut back on your fixed expenses. If you are having trouble paying for your basic necessities, perhaps it’s time to reevaluate your fixed expenses. While food is a necessity, buying a container of blueberries out of season for $9 may be a stretch. There are many ways to save and reduce your expenses, including using grocery coupons for day to day savings or more drastically “get rid of your car — even if that means you have to bike or take the bus to work.”
2. Cashing out Your 401(k): Cashing out your 401(k) should be reserved for absolute emergencies. While having the money in habd ”may give you a short-term fix, but the day will come when you wish you had that money” saved.
3. Believing that Fixed Income is the Only Answer: There are always ways to supplement your salary. Try running with one of your brilliant entrepreneurial ideas or set up a home business on the side.
4. No Emergency Back-up Plan: Have a plan for when things may veer off the intended route. Life has a way of dealing you the unexpected, so why not help yourself out and “establish a savings account that you do not access unless it’s an emergency.”
5. Living Beyond Your Means: It is easy to get into the routine of things and it can be hard to change your habits even though you are living beyond your means. Take a step back evaluate your spending and the things you can and cannot afford. “If you can’t afford what you have, like a house, car, or boat, then you must get rid of it. Get out from under it, and you’ll have peace of mind.”
Read the Huffington Post article here >>>