Common financial errors committed by people as reviewed by Dc Fawcett

 

Dc Fawcett is a person who provides real estate guidelines to people through his educational institution and internet blog.  In this article we will be reading about his analysis on some popular financial mistakes made by people.  

Spending irresponsibly 

Spending more than what is necessary gives us great momentary pleasure, but it can lead to an unsafe situation when we face an economic turndown.  Some of the areas where we tend to spend carelessly are:

Food:  When we live outside our homes we tend to frequent the restaurant since our hostel may not offer good food. In this way, we end up spending for costly restaurant food on top of paying for food at the hostel. So we could probably take up a room with our colleagues and cook good food for ourselves, install a coffee maker to avoid drinking coffee outside, keep a snack bag with us and so on.

Transport: We can cut down on transport by car pooling, using non-deluxe fuel and avoiding peak traffic hours.

Entertainment: Stick to less costly or even free entertainment 

Stop investing eternally

We can stop using items – cable connection, cell, internet and so on that make us pay continually, unless it’s necessary.  Some of these are addictive and will tempt you to invest endlessly. 

Use of credit cards traps us into a ring of debts

 Credit cards charge high interest rates and make items costlier than they actually are. Credit cards also push us to spend more than we earn. So we should be careful while using them. 

Purchasing a new car – Oh what a feeling!

We often take loans to buy cars as we cannot afford down cash. This means that we end up paying  more than the actual cost of this depreciating item and maintenance and repair of cars can also be very costly. But sometimes we cannot help buying a car. Hence we should go in for one that uses less fuel. We should also not buy an expensive car just to satisfy our whims. 

Home sweet home     

Suppose we buy a house covering an area of 6000 square foot  with a very small family, we would be incurring more taxes, repair and maintenance costs. This is a waste isn’t it? So we should be judicious and end up saving for the future. 

Refinancing your home

By mortgaging our home for a loan to replace another loan, we will be inviting high interest rates and payments.  We will end up paying more than what is required. 

Over spending

Over spending makes us reach a point where every penny becomes important and missing a single paycheck causes trouble.  We would never want to be in that situation would we? 

Conclusion

So let us spend within our means. To avoid being in the red we should keep an account of our daily expenses whether big or small. Then we should plan our monthly and yearly budget according to our expenses and salary and be aware of rental scams. This way we would have a bright future in terms of monetary reserves.