- Short-term thinking:
The most people only think about the current month’s expenses and forget about future obligations and expenses. Therefore, any unforeseen or excessive spending can quickly lead you into debt. Start analyzing your spending for the coming weeks and plan for the coming months. What will your expenses be? Get ready for big debts like taxes, re-enrollment, and vehicle maintenance. Also, avoid overcharging your credit card as much as possible. Soon they accumulate and you are unable to make new purchases due to the lack of limits.
- Lack of financial organization:
By organizing your finances, you can optimize your spending and make the most of your earnings with what you like. Of its monthly costs, 50% must be directed towards fixed expenses, such as debts, water and electricity bills, rent and education. Variable costs, such as leisure, unusual and unforeseen purchases must correspond to 30% of your budget. You need to separate a monthly amount to save. The idea is to be able to save 20% of what you earn. This number can be difficult to reach depending on your salary and your life situation, but try to save at least 5% of your monthly earnings. By separating costs in this way, it is much easier to analyze what areas of your life you are spending too much on and where you can adjust your budget.
- You don’t have a growth plan:
Always be on the lookout for bigger goals for your profession and your money. Research the steps necessary to achieve an increase in your employment or how you can expand your business. Invest in yourself, in your professionalization. Only then will you be able to stay ahead of the market, value your time and prevent situations like unemployment. Talk to your boss and coworkers about growth paths within the company. In some cases, your current job may not offer that option. In this situation, it is important to analyze whether it is really worth staying in that position or whether to look for a new opportunity elsewhere. Don’t be afraid to spend on courses to keep up to date. The amount invested usually returns quickly over the months, when you get a promotion. The most important thing of all is to be aware that evolving financially and professionally requires effort and long-term thinking. You may need to make some sacrifices in the present, which will certainly be rewarded in the coming months.