It's no secret, the money becomes the main needs of many people. Even so, there are still many people who spend their money without a clear purpose. Worse, mistakenly manage money it can lead you in debt.
As quoted by Forbes, Thursday (11/28/2013), to prevent it, you should start looking out mismanagement of money is often done. Afterwards, learn to change your attitude as a solution to overcome these errors.
For those of you who have difficulty managing money, here are five mistakes that are often made use of money and solutions to overcome them:
1. Do not have the budget expenditure
To achieve the target of various expenses, you need to have a personal budget. Unfortunately, many who do not want to take the time to put them together. Finally, you can not choose which one is the most priority things to buy. Without a budget, you might end up having a lot of debt.
Solution: When receiving a salary, draw up a personal shopping list. Write the expenditures that will reduce your income. Do not forget, set aside about 20% -30% of your savings to save or pay off debt. If it is still difficult to share it, limit the cash you carry.
2. Do not have an emergency fund
When newly receives a monthly salary, many of you spend it on a variety of everyday purposes. But be careful, a lot of unexpected events such as pain in the middle of the month, the car is damaged, or an accident.
Unexpected events that can actually make you so owe. Many people who end up having to pay huge interest because it requires a loan in the near future.
Solution: Make sure you have the savings to deal with emergency conditions are not expected to occur earlier.
3. Do not have a target retirement savings
Many employees are aware of the importance of retirement savings. Unfortunately, many employees who do not have a target amount of savings to be prepared in the face of retirement. These activities together with the aim without a target. Finally, the process of saving and investing becomes ineffective.
Solution: You can use a calculator calculating the pension funds are now starting to bloom available in a number of online sites. By doing so, you can find out how much you need to prepare.
4. Do not have a plan property purchases
Entered a new phase of life after getting married, everyone would want to live in their own homes. To make it easier to get it, you need to plan the purchase of property.
Solution: Consult your property purchase plan at a financial planner in order to get the right information, in particular about the purchase of a home.
5. Do not have life insurance
Having life insurance is very important because no one knows when someone could die. Not even a few possibilities you could have an accident that causes paralysis. Insurance payments does require patience of users considering it took until many years to pay it off.
Solution: If your company offers life insurance, make sure you follow it. In addition, get complete information mengenasi payment process and the amount that you will receive afterwards.
source: forbes.com
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