Want Financial Freedom? Fix These Six Spending Mistakes First*

My Secret Plan to Rule the World Book


*This is a collaborative post*

Money is a hard topic to talk about, isn't it? You don't want to think about what you don't have, but equally, you can’t talk about what you do have because what you do have is so stretched! Finances are funny things: you earn your paycheck, pay your bills, and beg, borrow and scrimp until payday again. It's not the way anyone wants to live.

When the debts are piling up, and you’re craving financial freedom, you’re in an excellent position to start evaluating which spending mistakes you’re making the most. With the errors listed below, you can learn what you’re doing wrong and begin to repair the mistakes.


First Mistake: Living Beyond Your Means

The most significant cause of people’s financial pain is earning $1,000 but living in a way that makes them spend $2,000. It’s not okay - all it does is trap you in a borrowing cycle you’ll never leave. You can get some excellent loan rates from direct lenders, where you can pay off all your debts in one go and only pay one repayment each year. There are plenty of ways to edit your budget and stop living beyond your means, and all it takes is understanding where you’re spending and where you should be spending instead.

Second Mistake: Paying Less Than Your Card Balances

Every single month, you are missing the full repayment level of your credit card. When this happens, the interest builds up and takes you further and further away from paying off your debts. Start paying as much as you can on the cards each month so that you can lower the balance rather than build it up with more interest on top!

Third Mistake: Burying Your Head In The Sand

You cannot set yourself any kind of financial goal without knowing your own financial situation first. You have to stop burying your head in the sand and instead start looking at your in-comings and outgoings. This will give you a clear picture of what your finances are doing.

Fourth Mistake: Adding More Debt

You want financial freedom, so you have to stop borrowing further. The only borrowing you should be doing now is to consolidate your current debts. Once you pay off your cards, cut them up one by one.

Fifth Mistake: Spending Everything

Living paycheck to paycheck, as we mentioned earlier, is not fun. It would help if you stop overspending. Make sure you’re saving for your emergency fund and putting money aside for the car when it breaks down. Once you do this, you can ensure that you always have a spare to last until the next payday. It would help if you weren't getting halfway through the month and finding yourself out of cash.

Sixth Mistake: You Don't Save For Retirement


If you currently don’t have plans for retirement, it’s time to make them. You want to ensure that you’re saving for your future. Life is short enough, and the last thing that you want is to get to the part of your life you’re supposed to enjoy with no money to do it!


*Contributed by Sam Jones. *Photo Image Source



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