6 errors in the handling of money, from which urgently need to get rid

For example, if you want to get out of debtsBut at the same time constantly spend on trips to the expensive places to keep up with friends, you are unlikely to reach its goal. So let's talk about what mistakes often committed by people in managing their finances and, of course, how to avoid them.

1. emotional spending

Shopping for some people - a tool to help cope with the ups and downs in life. But emotional, impulsive spending in fact, a little help. On the contrary, it complicates the situation. A temporary rise, which is felt immediately after purchase, inevitably eroding, leaving you with a devastated card and a pile of unwanted things.

To avoid impulse buying, set yourself a few simple rules. For example, only buy things on the list that you have made in a relatively quiescent state, but not when you're worried about something or upset. Or force yourself to wait 24 hours before you make an unplanned purchase.

More good idea: unsubscribe from all mailing lists to store email, in order to reduce the temptation and go to your favorite shops with only cash on hand. If necessary, contact your loved one with whom you can discuss your intentions and that in case of what will be your voice of reason.

2. Accommodate with money

Lend a helping hand and lend a certain amount of family or friends - this is, of course, wonderful. But in doing so you cause damage and your budget, and relationships with loved ones. Over time, you can stay and no money and no friends.

Help a friend in need, and keep him warm relations can and in other ways, not just borrowing it.

Look for ways to solve the problems of your friend is not throwing his money. For example, ask your friend to bring up its work until it has been repaired his car.

But if you still want to offer money, think of it as a gift. Then you will not feel offended if you notice that your friend buys new clothes and was not in a hurry to give you back the debt. If you can not afford such a gift, just do not lend.

3. Constantly pay account

There are people who feel proud when paying for lunch a friend or treat the whole company a drink. But if you got into debt (money or build from that part of the budget, which is set aside for more important expenses) to continually pay for all in a row, you should start to worry.

People who pay for all of the account on a regular basis, often find that their friends or relatives to get used to such treatment and expect it.

One has only to stop doing this, as the relationship becomes strained. In addition, it is difficult to know whether these people go with you for lunch because they have a good time, it is with you, or because it is predictable free food. Need proof? Ask anyone who has won the lottery, how many old friends he had left a year after winning.

4. Compare their financial situation with those of other

Many measure the success of the size of a house or a car brand, but it is wrong at its core approach. Big houses and expensive items show only the way people prefer to spend money and not how much money they have in reality.

If your neighbor can afford an SUV, so what are you worse? But keep in mind that most of your friends are living beyond their means.

Remember that, in addition to beautiful things, your friend may have debt equal to them or above their cost.

To avoid living beyond their means, determine what is the most important for you - and only you. Put for yourself goals and think about what you want to see your life in 5, 10, 20, 50 years. Maybe you want a big house in a certain place or to retire with a solid accumulation. Once you define for yourself what is important to you, make a decision on taking into account their objectives cost. Spend money to outbid someone, but not to enforce their true desires - is silly.

5. Live from paycheck to paycheck

Every month you need to pay bills and buy the essentials, but the rest of the income you dispose of at its discretion. It may be so that you spend your entire salary, without delay savings and investing in your future. This means that you will not have funds for a rainy day, in the event of an emergency, and at the end of a career you do not expect a quiet retirement.

When people spend everything you earn, they just completely absent financial strategy. This is the biggest mistake that people make.

How to avoid it? Each month, you need to plan a budget, which provides for deductions for emergencies and retirement savings. Good working rule: your fund for a rainy day should be equal to your living expenses for 6 months in savings mode, and deductions for retirement shall be 10% of your income. And stick to this budget is only possible if you have a plan for spending and savings.

6. ignore reality

If you avoid checking your credit card and bank accounts, you can say that you live in monetary coma. You would think if you pretend that problems do not exist, they will disappear by themselves. No, it will not disappear.

Refusal to engage in their finances - the same thing that refuse to go to the doctor when you realize that you do something wrong.

The only way to avoid this error - carefully study the problem and develop a plan to solve it. It is time to be cautious and not to respond to events that had already occurred. Ask for help from a friend, family member, friend or consultant financier to objectively assess your financial situation and develop a plan for improvement. Before you get started, review your credit history, your debt and monthly obligations. This is enough to start a conversation. Only when you look truth in the eye, you can take back control of your money.