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You may be thinking you are not as bad as some other people when it comes to dealing with money as all your bills are paid on time and there is no lack of food in the home but, here are 3 things you could be doing that are not good for your money management
- You Do Not Keep a Record
Once a bill is paid it is paid and that is all that matters as far you are concerned. No need to keep a record of amounts and dates paid. Wrong, if you do not keep a file or a record of payments you will be unable to follow and review spending habits or catch an irregular or over payment. This means that you will find it difficult to keep track of your budget.
Keeping a record of payments and purchases will help you tweak your budget and help you see where the money is going, how much more you need the next time around and where your money should stop going.
- You Do Not Look Beyond the Bills
Every month you concentrate on just getting the bills paid such as the rent, TV, fuel, school fees and food. In your budget or money goals there is no room for another category that may take a little longer to pay for or that you probably think you cannot afford.
Apart from the fixed expenses allow yourself to dream and aim for something else besides the regular bills. For instance you can set aside a few hundred each month for a weekend away from your house and the television.
Your money is not just about the bills it is also about other things that you can have and things you can do to make your life pleasant.
- You Are Ignoring Debt
Owing money is daunting and many people are uncomfortable with the mere idea of having a debt. On the other hand, there are people who will gladly pick up one debt after another. Whichever category you think you are in if you want to be a good money manager you should learn to deal with debt.
The obvious thing is do not borrow money, spend it and then ignore the debt because the longer you take to pay back the money borrowed the more interest you will pay. If there was no interest to pay, the lender will put a mark on your name and deal with you accordingly. This is bad for you but, debt as such is not a bad thing.
If you want to build wealth you must have a healthy outlook on debt. And when you need to get into debt, do your homework first and go for a debt that you will manage and preferably one with no interest or a low annual percentage rate.
If you truly want to manage and grow your wealth learn about debt and how to get into it responsibly.