10 Financial Mistakes You Definitely Want To Make Sure You Avoid

10 Financial Mistakes You Definitely Want To Make Sure You Avoid

By Wires | The Trent on May 24, 2014
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Photo Credit: Think Stock

Sometimes, the best way to get ahead in life is to simply avoid falling behind.

Financial mistakes can be made by anyone, and sometimes, they are tough to overcome. For example, the student who gets a credit card in college and doesn’t pay it off may be crippled by bad credit for the next decade. You can also be hit by a bad loan you made to a relative that set you back and caused you to be unable to repay your bills.

There are some other mistakes, like simply not saving your money, buying things that cost too much, taking on too much bad debt, not investing in your future, and the list goes on and on. This person wrote a great article on the topic, so take a look at it. It might help you create a better financial future for yourself than you might have had otherwise.

From time to time, we will all make some financial mistakes. What is more important than making such mistakes, is learning from them. Below we have identified some of the more common financial mistakes that lead to economic hardship so that you can try to avoid them in your financial life.

Apart from maybe winning the lottery, or inheriting a fortune, financial success doesn’t just happen. Most people live from day to day adopting a “spend as you go” lifestyle with no clear plan in place to save for specific future events or protect their families from unforeseen circumstances. The adage “if you fail to plan, you plan to fail” highlights the importance of having a clearly defined plan or achievable goal in place to work towards. You can’t just sit back and expect things to fall into place. Even though you can’t predict the future, you can be better prepared for it if you plan ahead.

Avoid borrowing on behalf of someone else. A good friend asks you to help them get a loan from their bank. You then accede to the offer and borrow in your name on their behalf and sign off on the dotted line. Your friend may have very good intentions at the time of borrowing but if they should run into financial difficulty and fail to pay you back, you are liable to pay the loan back in full. If your friend or relation couldn’t get a loan through a bank or other lender, there may have been a good reason for the decline. Be very careful in considering such a request if you are approached.

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