Michelle Marquez on 3 Common Ways People Mismanage Their Money
Michelle Marquez: 3 Ways You Might Be Mismanaging Your Money
It’s common for people to take a backseat when it comes to their own finances, sort of passively watching their paychecks disintegrate days after they get them. There are some common traits and mismanagement going on with people who are failing to handle their finances. The thing is, handling your finances and managing your money is crucial to building prosperity.
Below are a few common mistakes people tend to make when managing their money.
1.) You’re Not Quite Sure Where The Money’s Going
If you think about it, it’s pretty easy to lose track of where your money is going, especially with apps and services automatically deducting funds from your account. Some businesses capitalize on the very fact that you set up a monthly subscription that automatically draws frunds from your account every month, which you eventually forget about. Eating out, gas, and accoutrements all start to add up, too. That’s why it’s important to know where every cent you make goes. That way you can zero in on areas where you’re being extravagant. Then you can tone things down and focus on saving that extra money you’ve been spending in areas you don’t need to.
2.) You’re Living Paycheck to Paycheck
Living paycheck to paycheck can create a scarcity mentality that will permeate into every area of your being. Instead, try to diversity your income. Pick up a side gig that gets you another stream of revenue. Before you know it, you won’t be so dependent on that one paycheck. Earn more in order to save more.
3.) You’re Saving Only What’s Left Over at the End of the Month
Which usually ends up being very little. Instead, set aside your savings automatically every month. Try to be consistently putting away 10% of your income — and don’t touch it! Pay yourself before you pay anyone else, too.
Hopefully now that you know about some of these common mistakes, you can avoid making them. Visit the Michelle Marquez website frequently for more wealth management and accounting advice.