9 Mistakes to Avoid About Money

As God's creatures, we live and formed from customs (behaviors that we do over and over again). Likewise with your financial life. Your financial life today, is the result of the behaviors that you do repeatedly. I'm here to talk about the negative financial life. Though financial life has a tremendous impact on your life as a whole. Lots of people are trapped in the financial mistakes of the same.

The good news, if you can identify and eliminate these mistakes, that is the first step towards your financial independence.

Here are the errors in finance you need to avoid:

1. Expenses by Conscience

Largest source of personal debt are expenditures that exceed the things you need. Do not go shopping when you're bored at home, because you will buy things that you do not actually need / you rarely use. If you have a tendency to always follow your heart, try to make a mature plan to goods that are necessary to buy and items that you need to avoid. If you really want something, you can come back another day - in essence be patient when shopping.

2. Techniques Tempted by the Seller

Large companies tried many tricks to persuade us to buy stuff we do not really need. Yes, that's marketing. For example, do not be tempted by items that are discounted up to 70%; not because the item is being sale then you think the price is a very good price and you need to buy it. Do not be tempted to buy 2 free 1 promotion; otherwise look at the items that you have today, start counting how many of these items that you rarely use.

If you feel uncomfortable by the behavior of the salesmen, go away immediately - If you really want the item, you can come back someday.

3. Never Check Price is Cheaper

For certain items such as insurance or a mortgage, for example, a company-the company takes advantage of customer loyalty by providing a high price. The reluctance of consumers to switch to another company is in English called customer inertia. For example, people think too much red tape that they had to pass if you want to move the mortgage. And if they want to go through that process, that mortgage companies to move to other, more expensive, they will save a sizable amount of money. I took a parable: if you go shopping, would you buy an item that actually has a quality that is not much different, but has 20% more expensive price?

4. Do not Have Plans In Savings

It's true that in the 20s it difficult for you to save, because usually you have been freed from the responsibilities of parents and the income you spent for the purposes of everyday life. You can only start saving once you are earning enough felt. But if that time comes, you find yourself already at the age of 50s with no savings at all.

Saving requires an attitude of self-compulsion. If you are forced to save from an early age even though the amount is not too large, over time it will become a habit, and you will be more productive in the future. Your financial condition is guaranteed to be much better in the future.

Force of at least 10% of your income aside for savings.

5. Make Wealth For Life Purpose

Many millionaires who have never been satisfied properties. They always want more and more. The most painful thing they are if they have to spend money.

Money and wealth is not a bad thing, but they will be like that if we love him more than anything in life. Life is not just about raising money, you need to maintain a balance between money and other aspects of your life to another.

6. Let Money Ruin Friendship

A big mistake if you rely on your friends to solve financial problems you face, especially if you make it a habit. Many cases friendships are destroyed simply because of money problems. Do not stigmatized friendships you have built painstakingly with the affairs of borrowing money.

7. Do not Have Your Financial Notes

Many people do not know how much money they have to spend or debt that they have; they realize is their wallet is empty at the end of the month. It is better if you start to record your expenses so that you can better control the longer posts that needed to be saved.

Good financial condition began to be aware of your current financial situation.

8. Obtain Adverse Credit Assessment

Late in repaying the loan to the bank will make you exposed to interest and penalties, but in fact the problem is more important is that you will be adversely affected your credit rating (credit rating). As a result you will be more difficult to obtain credit in the future and it is very expensive, because it involves your good name.

I have a colleague who has been blacklisted by one bank credit card provider. He is currently the owner of difficulty applying for a loan (mortgage) to any bank. Why does this happen? The banks have a strong network with one another, so if you are blacklisted by one of the banks, then your name will be spread to other banks.

Avoid late paying credit moreover do not pay at all. If you are really having trouble, try to arrive well into the relevant bank to discuss your financial problems.

9. Borrowing Money With The High Interest

If you are forced to borrow money from a financial institution, make sure that you have obtained our best interest or low. Avoid borrowing money with interest over 17%, much less than the credit card loans.

Okay, hopefully the above financial tips useful for you.