The 6 Most Common Mistakes People Make When It Comes to Their Money
In a survey by Bankrate last year, only 20% of American adults said they had no regrets when it came to their finances. 73% said they regret making financial mistakes.
According to a report from CareerBuilder, 78% of full-time workers said they live paycheck to paycheck. 71% of all U.S. workers said they’re now in debt. 56% said they were in over their heads.
How does it happen? Most people make the same mistakes over and over again.
#1 – They have no plan. Most people simply “wing it” from day to day. In other words, they have no plan. Just go for it.
#2 – They spend more than they make. If you always spend more than you make, you’ll never make enough.
#3 – They take on too much debt. As long as they can handle the “payments” each month they think they’re doing fine, but they’re actually helping other people get rich while sinking in the hole they keep digging.
#4 – They don’t put God first. You might think that should be #1. But it’s not in their life. They give God what’s left over. That’s why they don’t give. They don’t have anything left.
#5 – They don’t have an emergency fund. They continually find themselves faced with a financial crisis because they didn’t plan ahead so they could be prepared for it. There’s a reason why we need to have a “rainy day” fund. It’s going to rain. Sometimes it storms.
#6 – They don’t plan to change. Instead of living the “abundant” life, they live the “redundant” life. Nothing ever changes or improves. They just do the same things over and over again, from week to week and year to year.
If that’s YOU, stop and start doing something different TODAY!
Here’s what you should do:
#1 – Create a written plan. When you write it down and say, “This is what we’re going to do,” something magical happens. I suggest the 10/10/80 plan. 10% to God, 10% to savings and 80% to live on.
#2 – Always spend less than you make. Every week, every month and every year. Don’t spend everything you have. Always spend less. Live beneath your means. Instead of being a spender, become a saver and watch what happens.
#3 – If you can’t pay cash, don’t buy it. Make the decision you’re going to pay off ALL your debts and if you don’t have the money, you’re not going to get anything.
#4 – Put God first in your finances and in everything else. Giving God the firstfruits is the way to blessing (Proverbs 3:9-10) and the starting place to blessing is the tithe (Malachi 3:10; Matthew 23:23). Jesus said, “Seek first My Father’s kingdom and His righteousness and all these things will be added to you” (Matthew 6:33).
#5 – Create an emergency fund. Start with $20 a week or whatever you can afford and don’t touch it for at least six months. This is a fund to help you make it through emergencies. Going to the movie, getting a pizza, buying new clothes, etc., are not emergencies.
#6 – Change your plan TODAY. If you don’t change the plan, you don’t plan to change. But when you do, you will.
Don’t make the mistakes others make. Instead, do the exact opposite and your results will be, too!
© 2018. Barry L. Cameron