For most people, the need to save money is a constant. It’s something that’s talked about all the time, even though few of us manage to achieve our goals. Whether it’s saving up for a dream holiday or boosting your bank account to pay for a car, there’s always a target. The problem is it usually lacks direction.
This is the big stumbling block when it comes to saving money efficiently. The clearer your goals and the more structured the route towards them, the easier it is to get motivated and stay on track. Try to be specific about what happens next. Break objectives down into a series of small, manageable steps. Saving money is a process. It happens little and often.
If you keep this rule in mind, you should find it easy to improve your finances. Keep reading for advice on avoiding common money mistakes.
Pouring Too Much Into the Car
For millennials, especially, vehicle expenses are a major gripe. In many cases, people get overexcited about their first car and forget to take long-term payments into account. With car loans from Latitude, lenders are encouraged to take a proper look at their current finances.
The aim is to show people that, with the right loan, you may not have to downgrade or accept major compromises. It’s all about finding a lender that offers flexible repayment terms, competitive interest rates, and a vehicle financing plan to match your needs.
Paying Credit Card Debts Too Slowly
This is a very common faux pas. Lots of people aren’t aware it could be costing them extra money on top of monthly bills. If you do have credit card debts, make sure you’re up to speed with minimum repayments. They’re different for each card, bank, and lender.
Each time you pay off the minimum sum and no more, you’re not eliminating the amount of debt you think. Some of it is used to cover the interest accrued, so the only way to pay off your debts in full (and not extend them) is to give more than this minimum figure.
Thinking Overdrafts Are Free
We all dip into our overdraft every now and then. In fact, some people rely on it as an essential safety net for months when money gets tight. There’s nothing wrong with this, but it’s important to remember that this is not your money. Often, you’re being charged for the privilege.
Not all banks charge overdraft fees, but many do and, over time, they can make it really tough to climb back out. If possible, shop around for a free deal. Often, lenders have introductory periods and switching regularly may be worth the effort if it saves you a little money each day.
Forgetting to Count the Pennies
Perhaps the biggest mistake of all is assuming the little things don’t count. According to a recent study, the average office worker spends over $1,300 every year on store-bought lunches. Yes, it takes longer to make your snacks at home, but think about those savings.
The advice applies to all kinds of things. Do you really need to catch a taxi or is your destination within walking distance? Is it essential to buy a new winter coat if the one from last year is still in great condition? The secret to saving money is control and making sensible decisions.
Why You Should Always Shop Around for the Best Price
It doesn’t matter whether you’re considering a car loan, choosing a utility provider, or restructuring your credit card debts, the most valuable tool is information. If you’re patient and put the time into finding great deals, you’ll start to see them everywhere.
Our culture is based on instant gratification and spending where you stand. However, you can break out of the cycle of debt by taking a step back and looking more carefully. You’ll never get a worse deal because you’ve taken things slowly and done your own research.