Sunday, 29 March 2020

10 Basic Financial Mistakes That Poison Your Budget

According to the latest survey results do we know that the very low savings rate in Turkey.

There is one thing I hear all the time: 'Money goes the way it comes' is not hard to believe. Really these days are going as money has come. It is not possible to save the outgoing money as it comes.

The main financial mistakes that I can show among the biggest reasons for money to go as it comes are poisoning your budget. You can see this as a leak in your budget. Drop by drop becomes a lake, but this is not a lake of your own, it flows out not in your money budget!

Take a look at the possible financial mistakes that poison your budget.

1. Improving the quality of life with debts
Everyone should learn to live according to their budget, and it is quite possible to live quality according to the budget. But ignoring the existing budget and raising the quality of life independently of the budget is one of the biggest financial mistakes and is often made.

As you can imagine, increasing the quality of life independent of the budget is done by borrowing. Unnecessary expenses made from credit cards can be shown among the best examples with the idea of ​​taking a consumer loan and going on vacation or somehow paid.

Acting according to your budget without increasing your life quality more than necessary will prevent you from making this financial mistake.

2. Ignoring high-interest debt winking
How can we ignore the interests when we say debt? Every debt made definitely has more or less interest. Delayed credit or credit card debt cannot be considered without interest payments. Extra interest payment is inevitable when you receive the service you will receive with cash, by borrowing and delay the debts on top of it.

Not just credit and credit card debt; It is also necessary to mention the interest of electricity, water, internet, GSM bills. If you do not comply with the budget, your invoice debts with a late payment deadline wink at the interest.

3. Waiting for the Day of Judgment to end debts
When do you intend to terminate your current debts? Interest continues to poison your budget! Think about when was the last time you planned to end debts. If you are in debt, try to take immediate action for the interest incurred.

If you have debts to more than one bank, you can terminate your debts under a single debt and a single interest plan through debt closing loans . If you have debt to a single bank or institution , it would be more logical to prepare a debt closing plan for yourself as there will be another financial mistake that you will make with debt .

4. To continue unnecessary spending actions
However, what a beautiful deal you made. Moreover, you also received a nice discount, but what about the maturity of the +3 installment opportunity will be ignored?

Yes, congratulations. You managed to poison your budget again!

Installment, discount, opportunity, promotion… Whatever you call it, unfortunately you will need to write it on the list of unnecessary expenses if it is taken even though you do not need it. However, if you can get the things you need with installments and discounts, you will be advantageous. Everything else is among the financial mistakes that damage your budget.

5. To be offended by credit cards and leave them to their fate
According to the common and wrong beliefs, using credit cards is not among the financial mistakes made. Yes, you have not heard wrong; Using a credit card is NOT a financial mistake.

Contrary to popular belief, using credit cards deliberately provides many benefits. Monitoring the income and expenses, benefiting from installments and awards, monetary security, as a means of upgrading credit ratings , and the benefits provided to the country's economy can be listed among the advantages of credit card usage .

You can use your credit cards in a conscious and appropriate way by taking advantage of them. Similarly, using debit cards can provide the same advantages.

6. Not creating a personal finance plan
It is not difficult to live with a simple personal finance plan. Calculate your monthly income and expenses. When looking for ways to save money on your compulsory spending, try to stop unnecessary and unnecessary spending just for what you want . Calculate how much you can save each month.

Set goals based on your personal finance plan for your savings. Not creating a personal finance plan is among the biggest financial mistakes made.

7. Not looking for ways to save money
There are thousands of ways to save money. We always talk about ways of saving with pleasure. Today, you can save anything you can think of, that is, you can pay less.

Looking for ways to save money during the day, we wrote. Do you still spend a lot more fuel on your car? What if your cell phone bills are too high, we wrote that too.

Somehow Whatsapp works better and more economically, never mind.

Just search.

8. Not turning the savings into investments
Not giving enough value to the savings left over from your savings is another financial mistake.

You need to evaluate your savings using tools that meet your expectations and risk tolerance. If you don't like taking risks; an accumulation account, gold purchase or mutual funds may be among the alternative ways you can evaluate your money. Other investment tools can also be chosen according to your preference.

9. Choosing the wrong investment tools
One of the biggest financial mistakes that can be made is to choose the wrong investment tools. Especially if high risk investment tools are preferred; wrongly distributing capital in investments can also push budgets.

To avoid this financial error, you can diversify your investments by making portfolio diversification instead of using all your capital in a single investment tool . You can take as a principle not to risk more than 10 percent of your capital for each investment instrument.

Another trick is not to take the steps that you cannot bear the negative results of your investments.

10. To have financial thoughts far from reality
The last frequent financial mistake is to set financial targets that are not suitable for the individual's budget. Take the accumulation, you are planning to save 10 thousand lira at the end of 12 months. How realistic is this financial target? Can you earn enough to accumulate 10 thousand liras at the end of 12 months? Let's assume you have income, and how much do you believe you can reduce your spending? You can think the same thing in your investments.

It has to be really feasible in the financial goals you set for this and other reasons. Financial goals that are not feasible and really far away are often among the financial mistakes made by individuals.

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