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Worst Money Management Mistakes and How to Avoid Them

We have all had bad experience with out expenditure.Some of which hurts and others don't.Whats your story? If you are making one of this five mistakes below it's time to step back and re-evaluate.picture courtesy

1. Not having a a budget

Not having a budget is the most commonly mistake people have when spending their cash. Without budget you can land into surprises which are unprepared.And that will end up creating a dent on your pocket.

Tip: Make sure you have a budget and stick to it.Your budget will depend on your income and expenditure.

2. Not tracking your Spending

Trucking your expenses will give you aclear picture to where your money is going. If you're not trucking your spending even the small things you buy could easily overwhelmed your budget.

Tip: Simply get started on tracking your expenses on paper.

3. Borrowing money

Stay away from borrowing unless it's emergency or what you lack is special need.If you borrow money for luxury with no guarantee to pay back can dent your pocket and create bad relationship with your family.

Tip: Try to stick with your budget and look other alternative ways to find money.If you have to borrow take amount which you can pay back.

4.Not setting goals

Goals give you steps to work towards.Goals are the reason somebody works because they motivate you at the end of the day.If you don't have goals it's hard to maintain your earning.

Tip: Set goals you want to achieve whether short term or long term goals.You will be motivated.

5. Spending on stuffs you don't need

Its necessary to distinguish between need and wants.Failure to do so you can end up spending on things which are not necessary.

Tip: Avoid pressure from peer on what you should attain at a certain time and avoid competition from others you will end up having things which are not necessary.

Content created and supplied by: WeeLeeWrites (via Opera News )

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