When it comes to using our smarts, money matters are one of the areas that can best benefit from us being sensible. By being clever with the way we manage our money we can keep it safer, help it to grow and avoid serious mistakes. Unfortunately though, not all of us are sensible with our money all the time for a number of reasons. Often this is due to the fact that money is such an emotional subject – which leads us to make these key decisions based on our emotions rather than our brains, and other times it can be down to the fact that we’re too lazy or even too nervous to deal with our cash. Here we will look at some of the mistakes people make often that are important to avoid.
Keeping All Your Cash in One Place
If all of your money is in a single account then this is a seriously risky behaviour that you should aim to stop right away. The problem here is that keeping your cash in a single place means that all your eggs are in one basket. If that account should be broken into, if that bank should go under, or if you should lose that card even then you will be in serious difficulty and unable to pay for anything. Right away then you should try to move your money into at least a few separate accounts and some savings accounts that will make your cash harder to access.
Avoiding Looking At Your Accounts
Many people will avoid checking their accounts because they’d rather not know what was in them. This might sound absurd, but if you’ve had a tough few weeks and you are expecting your money to be looking low then you might not want to put yourself in a bad mood by looking at it. Of course this is a serious mistake because it means you won’t know precisely how much is in your account and you won’t notice any problems until it’s potentially too late.
Put Off Chasing Up Money You Are Entitled To
Most of us could get an injection of some cash if we wanted to. Perhaps we paid a bank charge that we shouldn’t have and we would negotiate our way into getting it back, perhaps we could change to a cheaper service provider for one of our bills, or perhaps we’re owed an instant tax refund. Either way, many people will tend to put off chasing this cash because they don’t want the hassle, but of course this is a big mistake and means turning down potentially large amounts of cash. If there’s a way you can get money, then make sure that you make the effort to chase it.
Paying More For Things
This falls under roughly the same category but this doesn’t just apply to your bills. For instance it also means looking around for time to time to see if you can find a cheaper offer on your bread or a cheaper shampoo brand you need. Don’t fall into a routine and then just accept that price as gospel – make the effort to shop around once in a while.
Jack Horne is a financial consultant with a leading investment bank. A passionate blogger, he often gives quality advice to people on monetary issues. He also likes travelling on weekends with his family.