money & Banking

Wed, 13 Jan, 2016Ben Squires

7 easy fixes for common financial mistakes

7 easy fixes for common financial mistakes

At one stage or another we’ve all been in a bit of financial strife. The good news is that these mistakes can generally be corrected without too much effort. We’ve taken a look at seven common financial mistakes you can easily correct, that will have you back in the black in no time.

1. Saving like a middle income earner

Part of the problem is that we’re not being ambitious enough in our saving habits. Your goal shouldn’t be saving a nest egg to retire, but creating an ongoing passive recurring income like a portfolio of well-located residential properties or a decent portfolio of blue chip shares.

2. Not investing

The fact that most of us are never really taught how to save probably has a lot to do with the fact that most of us don’t invest, yet there are huge opportunities here to make big savings as a result. To be financially independent you need to build a strong asset base that generates residual income.

3.  Falling prey to easy credit

Too many people find themselves in debt purely out of poor debit habits. It’s so easy to get credit now that most people don’t realise the trap they’re getting into with credit card companies. By managing your credit sensibly and effectively you can avoid becoming entangled in this trap.

4. Getting advice from the wrong people

Part of the problem is a lot of people aren’t getting the right advice and don’t really have a financial mentor to call upon. The good news is there is a wide range of independent, reliable financial advice services available that people should be taking advantage of when they can.

5. Thinking investing is too difficult

A big reason why a lot of people don’t invest is that they feel as though they’re too busy so they take the path of least resistance and don’t do anything. But to be truly successful from a fiscal standpoint you must take time to plan, take action, learn from mistakes and take charge financially.

6. Emotionally based financial decision

That being said, while there is a need to move you needn’t make it without confirming it’s the right decision. A lot of people lose a lot of money because they make rash financial decisions without thinking about the consequences. A little bit of work and research can help you avoid this.

7. Letting fear get in the way

Just as bad as laziness and ambivalence is fear that can get in the way of people making financial decisions. By being willing to learn from your mistakes and eventually improve your service you won’t let fear get in the way of meeting your various financial goals and achieving success.

Related links:

10 quotes that show money isn’t everything

New Zealanders lose $12m to online scams

Facing up to why we fail with money