Dollars & Pennies

There are some financial mistakes people commit unknowingly. By the time they realize what has gone wrong, it could be too late. The article presents six of these common mistakes. Reckless spending When one has a credit card with a fairly large spending limit, one tends to spend recklessly without worrying about how they will pay the bill. Spending more than what one can afford and excessive spending for frivolous reasons is one of the major financial mistakes people commit. They then only pay the minimum dues leading to a situation where they pay high interests. If not stopped, this can go out of control and ruin one’s financial future. Too much of debt One of the common financial mistakes people make is getting into debt. When one takes too many loans, it creates a situation where the mo...

Managing money is a skill that very few learn well, but money management is not exactly rocket science. It is more of a question of how willing you are to make the best use of your hard-earned dollars. Of course, choosing to be frugal is a good option, but it is not for everyone. A minimalistic lifestyle has its own charm, but everyone needs to splurge once in a while. Moreover, you need to have enough funds to have an acceptable social life while paying utility bills and rent on time. How to do this? Here are a few basic financial skills to master. These will help you spend wisely and save for your future without worrying about going broke.  Set up a budget: You need to learn how to give every single dollar that you earn a purpose, or a goal—a dream holiday, down payment for a car, o...

Financial advisors are qualified and trained experts who provide sound advice for money management. Individuals and business owners can benefit immensely from their research and recommendations. They help achieve financial goals and even your personal financial targets in the long term. Often, many debate the need for a third-party advisor. However, this could be subjective to the situation. When to hire a financial advisor For family planning It may sound obnoxious the first time you hear about someone hiring a qualified professional to manage their household finances. In today’s economy, however, paying for life insurance, estate planning, saving for college expenses–in short, the cost of starting a family can be pretty overwhelming. No doubt there are tons of investment opportunities an...

To become a successful businessman or financial expert, you have to gain the knowledge and skills related to finance. It is important for you to work hard and remain proactive to master the necessary financial skills. This will let you become successful as a finance manager at home as well as your organization. Given here are five such financial skills to master your 20s: Monitoring the account every month There are many people who find this a daunting job, but putting in some efforts and monitoring the financial account is really useful in the future. It will let you know the exact balance in your account and prevent you from overdrawing. You can keep track of the monthly fees and pay immediately through overdraft if there is anything due. Monitoring the account will help you to identify ...

Everyone knows the basics of personal finance management—budgeting and saving. However, very few of us rarely use these basic financial skills. Many people often go through their life without proper planning of their finances, until a rainy day strikes. When you are unprepared, everything can only go downhill from there. The best thing to do here would be to follow the Boy Scouts motto, “Be prepared.” How to do this? By managing your hard-earned money well and mastering a few financial skills. Managing money does not require you to be a math whiz. It is very simple to learn and acquire a few useful financial skills. You just need to have self-discipline and self-control. Being organized also helps when it comes to making prudent financial decisions. Here are a few financial skills to maste...

All of us aspire to lead a financially stable life, but achieving this feat is easier said than done. This is because we tend to make common mistakes in managing our money that can render grave consequences and sideline our long-term financial goals. Fortunately, the good part is that you can easily avoid these major hiccups by identifying what types of financial mistakes can land you into trouble. Being overly dependent on credit cards Overusing the credit card is the worst thing you can do for your financial health. Not only will this financial mistake amass a massive debt that can become impossible to repay, but it can also detrimentally impact your credit score. In other words, it will starkly lower your chances of securing personal loans and getting employment or even an apartment. To...