More financial mistakes and how to get around them

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We’ve already introduced the topic of financial mistakes a few months back, and we’ve gathered another set of common pitfalls that many Americans fall into when dealing with their finances. As we mentioned before, though some mistakes may seem small, they have a way of piling up and becoming major hassles in the long run.

Here are some more financial mistakes, and ways you can avoid them.

Spending beyond your means: Overspending is one of the main reasons, so many Americans are in debt. To get around it, people need to cultivate the discipline to set aside a percentage of their wages before they spend it.

Overuse of credit cards: Credit cards are dangerous things. They offer a huge deal of convenience for users and present huge rewards if they’re used enough, they simply cost more. Financial experts recommend only using credit cards for emergencies to prevent the bill from ballooning.

Loaning for the wrong things: Yes, there is such a thing as the wrong thing for loans. Financial consultants have often cautioned people for applying for loans for things such as vacations or family trips. Loans should be for things that can offer a return on investment such as businesses, cars, and houses (for their resale value), and school.

Hello, my name is Steve Sorensen. I’m a CPA based in Colorado. I live for imparting financial advice. Learn more about me and the stuff I’m passionate about here.