Money Mistakes to Avoid In the New Year

2021 is rolling out, and 2022 is fast approaching; with a few weeks left, you should already have an idea of what you want to do in mind. Here are a few things to ensure you learn while preparing for the new year, even while in the holiday mood.

Plan; Nothing can be better than planning. Plan in every area you want an improvement, and even those you need to do some cutting down, it would not hurt to have just one less thing to worry about. Planning would enable you to start the year on a good financial note. It would also give a footprint for bigger plans you’ve scribbled down. For instance your;

  • Rent or mortgage payment
  • Utilities and bills
  • Car Insurance
  • Health insurance

Do not Shop because you have free time on your hands: Vendors will keep selling every day, get yourself busy and avoid unnecessary online stores and product ads. If Possible, unsubscribe from your favourite online shopping platforms if needed. Sales will keep running until the new year, but you cannot keep shopping all through. Buy what you need and ignore the rest for another time. It would be a wrong move to keep buying everything because there is some awkward price slash, and you believe it is a steal! Please stay away from it. You will only be spending money you do not have on products you do not need.

Living Paycheck-to-Paycheck: This is a long old habit that many have overlooked even to this day. 2022 is another chance for you to change the practice of spending every penny and waiting for your next paycheck each time. Fix that spending habit and get yourself a full-proof spending plan. You can review expenses for 2021 and check the unnecessary expenses you made to avoid them in the new year. Write down all payments made, including the irrelevant ones.

No Emergency and Retirement fund: Create an emergency fund and choose a suitable plan and an online saving app like FundBae to help you save automatically and securely.

Borrowing money to buy expensive items that do not yield income: Stop borrowing to buy things that wouldn’t generate any income in the long run. Instead, they become liabilities. If you have debt, then ensure it is a good one.