We are all trying to make enough money to live the way we want and to save enough money for our futures. But there are a few very common financial mistakes that make our futures much messier than they need to be.
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What money management really comes down to, is making a lot of small, well-thought-out financial decisions and moving forward from there. Here are a few mistakes people often make, that have seriously long-term effects. Avoid these, and you'll be in a much better position than most.
1. Waiting too long to save for retirement.
401(k)s are crucial, and millennials in particular are largely ignoring them. Millennials are contributing way less to their 401(k)s than their Baby Boomer or Generation X equivalents, but the truth is the earlier you start, the more money you have come retirement time. Our advice, as soon as you are in a job that allows you to open a 401k take advantage of it — and if you haven't started saving, start now. We very much promise this won't be a regret.
2. Paying back your debt late.
If you have credit card debt, you truly cannot afford to pay it back late. Not only will you be slapped with interest and late fees, but it has the potential to dramatically effect your credit score too. This will hurt you when it comes to buying property, it could mean you pay more in car insurance — there are a lot of different ways this can have an impact. Do yourself a favor and just pay your things back on time.
3. Buying a home or a car that is too expensive.
So you really want that new glamorous home or car, but can you really afford it? This is a question you need to ask yourself, because the worst thing is being "house poor" or "car poor." Sure you might have the house or car of your dreams, but because of the amount of money you owe, that will likely be the only dream you're fulfilling for a good long while.