Common mistakes when saving
Published 12/22/2021 | Last updated on November 05, 2022
Several habits may seem harmless, but little by little threaten our economic stability and, if precautions are not taken in time, they could ruin it completely. Organizing personal finances is a task that requires time, order, and planning.
Why is saving so important?
Saving is a healthy practice that helps us balance our family budget, allows our money to increase, and we have it available for contingencies or emergencies.
Saving money today to use it tomorrow gives us peace of mind and allows us to live better. In addition, it improves the situation of our families because it leads us to plan for the future and helps us in the event of emergencies that may arise.
Saving is a fundamental habit to have good financial health. However, some mistakes are made when forging this practice that can cost you money and truncate future goals.
How to save money?
Although saving money may seem like a great challenge, if you avoid some of the most common mistakes that harm your finances, you can better control expenses and even design your own strategy to pool resources and achieve your goals.
Common mistakes when saving
1. Make endless payments
Ask yourself if you need those services that keep you paying monthly and yearly. Things like cable TV, on-demand content services, or gym membership may force you to pay, but they do not help you own something. Creating a slightly simpler lifestyle can go a long way toward growing your savings when you want to save more.
2. Get into debt a lot
The use of credit and debit cards, or payments with the mobile phone, represents an advantage for consumers both because of the convenience of not having to carry money with them and because it is one of the best ways to control and manage your expenses when be reflected in the bank account. However, many of these expenses are linked to outstanding debts, so it is necessary to keep track of these expenses and not allocate more money than what is earned.
3. Wait to earn more money so you can save
We often wait to earn more money or do not have expenses to start saving. This is a terrible mistake. We cannot have excuses to begin a saving habit. In extreme situations, people think they need to win the lottery to be ready to save money. If you feel that you are in any of these situations, we recommend you try to get out of that wrong idea.
A widespread mistake is wanting to wait for a miracle from heaven to start saving, a salary increase or winning the lottery are not such everyday events that we say the only way to start saving is by starting. Start with what you have, even if they are $10, and little by little, you will get into the habit. Otherwise, your life will go on waiting or wanting to earn more, and maybe when you want to save, it will be a bit late.
4. Not being honest with your financial situation
If you want to face your situation, but you do not know how much you owe or how much you spend, you will not know from what point you start or what problems you should improve. Make a budget and see everything.
5. Forget the emergency fund
An emergency fund is vital for you to be prepared for unexpected situations. If you have medical or family expenses that you did not consider, having this fund will be a relief. It can also work if you lose your job and need to spend some costs to find a new one. It should be separate from the savings account and should not be used unless it is an emergency that you cannot cope with otherwise.
At El Paisa Multiservices, we want to help you with your financial movements. You can contact us if you have questions about our services.
By Ingenuity & Solutions
