Money Management Pitfalls

: Chris Lee Law Firm

  Filed under: Money Management

money managementThere are a whole host of innocent-seeming mistakes that many people make when it comes to managing their finances. These money management pitfalls are relatively minor individually, but when a few of them are combined, the result could mean very bad news for your wallet, and in some cases it could even be a ticket to Dallas bankruptcy. Educating yourself on a few money management behaviors could make all the difference between Dallas bankruptcy and successful financial planning.

Pitfall #1: Saving

Saving is one of the most important things you can do as a person, but when it comes to how to save and how much to save most people are sadly in the dark. There is a prevailing mentality that says to spend what you need each month, and save the remainder. That could not be a worse way to save, according to financial experts. Instead, have a savings goal of, say, a couple hundred dollars a month, and find ways to make sure you hit that goal. Saving is an active pursuit, not a passive change-in-the-jar strategy. In order to get the results you have to take control of your savings plan.

Pitfall #2: Knowledge

A big problem with the way many people spend is that they do not take into account how all those little incidental purchases add up over the course of a month. Saving just $5 a day by cutting out some extraneous purchase or other, whether it’s the latté or a beer after work, or buying a bag of potato chips at the grocery store, will end up netting you $60 at the end of a month. That’s a cable payment for sure, or a cell phone bill, or what-have-you. The point is to really think about what your purchases today mean for your financial health. Cultivating this mentality is a sure-fire way to keep your assets growing and Dallas bankruptcy way back in the rearview.

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