Eight mistakes in managing personal budget

Managing finances is an important thing to do by any person. Financial problems will greatly affect a person's private life. However, the solution of your financial problems is not as difficult as you imagine. All you need is a small commitment, the right application and the desire to be free from the fear of financial problems. Start to control of it today.

Some of the mistakes made by many people in general:

1. Spending more than your income

It is one of the biggest mistakes that happen to almost everyone. Regardless of whose money is spent, where the source? We must begin to consider that it is because of the use of credit cards, where the cost of its use is interest charge. This problem does not seem to be denied.

Tip: Spend your money for something meaningful. Try to change your mindset and stay away from shopping malls. In other words, try to cut your expense and do saving at every opportunity, do not just keep spending it.

2. Not doing the right investment in goods

If you want to buy long-term assets such as furniture, electronic equipment, etc with the credit system. These items have a long-time usage and have a value of depreciation while the fees charged for the use of a credit card is the same every year.

Tip: Set aside your money in each week or month to buy such assets.

3. Buying goods just because 'SALE' (discount/promotion)

Buying more clothes than you need, even perhaps some of it will never wear. Think that all that stuffs had been manufactured in accordance with a specific sale price with a sufficient margin as well surely.

Tip: Think twice or even three times before you use your credit card to buy sale items, whether you really need it or not.

4. Not actively looking for ways to double your income

Just because of you work every day, it does not mean that you do not have time to do the following things:

- If you have a particular hobby, try to learn more by read books and so forth. Maybe from there you can turn your hobby as an initial idea for your own business; many people have proved it.
- How about create a website to promote goods and earn a commission for it?
- Fix your work resume and prepare for the next job opportunity.
- Take additional courses to increase knowledge and insight, then you will be ready for the next job opportunity.

5. Off to sell the old stuff that is not used anymore

Almost every person must have items that are no longer useful in their homes. Maybe this stuff matters to someone. Why don’t you sell those goods? You may have extra money to simply increase your income.

6. Comparing yourself with other people and their lifestyle

Are you sure when you compare yourself with people, they do not run into financial problems just as what you are facing now?

7. Not set aside some funds to invest

If you just think of subsistence from day to day only, then it is not enough. If you see that every day we are spending money for lunch and even to drink coffee, but no funds for investment? This is very unfortunate because if we calculate this value in a year and if the amount had been invested, it must be double.

8. Not committed to your personal budget plan.

You cannot expect that spending money each day will be the same. There will be a time where you should spend some more money than usual, for example during holidays. Therefore if you are already plan your budget and you run it, then of course the over expenditure already planned and will be more meaningful.

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