Many of times we don’t consider the everyday aspects of life and how they may impact our finances. There are major mistakes that people make all the time that jeopardize their financial careers. Here are five mistakes that are easily avoidable:
- Excessive spending and debt – Many people use credit cards to pay for items they cannot really afford. Most of the time, people don’t pay off the bill promptly, so the debt continues to grow. Instead of purchasing an expensive item on your credit card, use cash or a debit card so the money comes directly from your account. This will limit your spending but also avoid accruing debt.
- Being a bad employee – Your career is most important when it comes to your financial life. You can easily ruin this by establishing a bad reputation around the workplace either through laziness, dishonesty, immaturity, and so on. The point is, if people perceive you as a bad employee, you will not receive raises, promotions, or rewarding work. Also, an employment history with multiple jobs and a lack of upward progress could mean signs of a bad employee to a hiring company.
- Crime – A criminal record is one way to ruin your financial future. It could deny you qualification to loans, employment, security clearance, and admission to schools. The best advice is to stay out of trouble! If you do have a little bit of a criminal record, all you can do is be honest about your mistakes accept that there may be long-term consequences. When you are given the chance, do everything you can to prove that you are trustworthy and reliable.
- An unplanned family – Raising a family is a reward but it is quite expensive, especially those who aren’t prepared for a new addition. The average cost of raising a child can cost anywhere from $6,000 to over $10,000 a year! This could be quite a problem for those who are still paying off loans or in the early stages of a career. Not only is the cost a huge factor, but having an unexpected child will limit your time at work, lose educational opportunities, and reduce the amount of savings for retirement.
- Insurance – Make sure your insurance plan is adequate. Every year around the US there is disastrous flooding, meaning some homeowners are left facing massive amounts of debt because they didn’t purchase a flood policy. You may also want to consider adding an insurance policy for guests, workers, and even trespassers. You could face multiple lawsuits or have to pay out of pocket for these people if they injure themselves on your property.
Remember that all of these factors that cripple your financial life are easily avoidable. Take the time to consider these five situations and apply them to your life! For the entire article from msnbc.com, please click here.