The 8 Spending Errors You Should Avoid At All Costs

Image and video hosting by TinyPic


Managing money is never easy. There are a wealth (pun intended) of considerations to consider when it comes to deciding where to invest, how to save, and how to budget. If only there were a guide written that expressly and adaptively considered your finances, took account of your spending temptations and drew up some form of tailored personal spending plan for the month automatically. It sure would make money matters a lot easier. Unfortunately, intelligent financial AI hasn’t been invented yet, so, until that day, we are chained to the responsibility of keeping our finances in check.

A simple do/don’t list will help you understand how to best stay out of debt and continue being financially progressive. It’s important to give yourself as strong a footing as possible, so a slight push will keep you on your feet. When it comes to finances the ‘don’ts’ are usually more important than the ‘do’s.’

This is because while a lucrative financial opportunity ‘do’ might be missed and cause you some heartache, that’s never worse than a significant ‘don’t’ that has the power to make you bankrupt. No one wants to be in that situation, so it’s important to lend a little foresight to your budget and understand just how is best for you to proceed in this case.

The following 8 ‘don’ts’ should be taken as financial axioms that you can keep close to heart, mind, and wallet as you navigate the financial landscape.

Repeated Gambling

A trip to Vegas with your buddies is one consideration, but repeatedly gambling in sports stores or online can quickly turn into a full-blown addiction, and your finances will always suffer. Gambling is one of the activities that can turn into an addiction more rapidly than you’d assume because the process lights up the dopamine centers in your brain. Thanks to the novelty, gambling can become endlessly entertaining, and as a result, bigger and bigger risks will need to be taken to keep you feeling that feeling of elation during a big win, or tension during a significant loss.

Gambling is a fun pastime for many of the population, and many can handle and control their use of it. In fact, betting stores are often employing measures to prevent people from becoming financially destitute as a result of bad habits and practices. However, they can’t be the parent of anyone coming into their doors to gamble, and so it falls to you to ensure you’re not risking more than you should be.

Losing money is too often a circumstance because the gambling stores are not set up to fail. They have certain contingencies in place to make sure that they allow the house to have an edge. Sports betting is slightly different in this regard, but it can still be dangerous if you spend money you don’t have. You can easily land in debt with a poorly thought out gambling habit.

Joint Accounts

Joint accounts are often a smart way for married or partnered couples to manage their finances together. There are many interest and tax reasons for a couple to do this, and all of them are valid. However, starting a joint account with someone you’re not sure of can be a terrible move to make. A new relationship, unstable wedding or other strange connection between people can be volatile financially, and this is never the time to tie your finances to that of someone else.

You should only ever open a joint account with someone, either in a loving or business relationship, if you are confident and have no doubts that their character is one to be fully, deeply trusted. As soon as you open a joint account and place funds in it, even if you earned those funds, the act of doing that is a communication that you are willing for the other person to spend your money. Act wisely, and with this in mind.

Credit Cards

Credit cards are a great financial resource for many people, and allow you to build up your credit rating with a fantastic rate of growth if you keep on top of your payments. The caveat there is if you keep on top of your payments. If you’re young or have a relatively low-paid job, it might be tempting to pick up a credit card to keep on top of those large purchases you’d like.

However, you’re likely to regret this when payments start piling up, and you can’t stay on top of things. No matter what you do, NEVER try and rectify this by paying one credit card off with another. The cycle will only continue, and soon you will be up to your eyeballs in debt. Be sure to deeply pour over the terms and conditions of any credit card you sign up for, and you’ll be sure to be in the best position to justify possessing one.

Payday Loans

As with credit cards, payday loans can quickly turn into fast recovery methods that can backfire on you quickly. There are going to be times in your life where your finances don’t stack up, and life feels like you’re moving too slowly. Maybe there are financial interests that you’d like to invest in right now, and the payday loan could help you do so. In these circumstances short of an emergency, it’s always best not to request one.

The interest terms on payday loans are usually quite high, and if you’re already struggling financially, you’re on dangerous footing to recover. Try and find other methods of income before you settle for this, no matter how flashy the television advertisements might declare themselves to be.

Ignore Debt

Ignoring debt is the single most destructive force on your financial and credit health that you could have. The debt will pile up, and you might be forcibly removed of your assets and potential financial future if you have too much debt. It’s important during this time to be as up-front and honest to your creditors about your situation as possible. It’s usual that if you communicate this effectively, they will allow you to begin a payment plan or similar through a collection agency. It’s also important for you to learn the benefits of debt consolidation. With it, you could even reduce the interest rate percentage, there’s more online here if you’d like to understand how.

Social Spending Pressure

Everyone wants to live like a king. Not everyone can live like a king. When you’re out with your friends, the sheer social pressure to keep up with proceedings can make you spend more than you otherwise would like to. It’s never nice feeling like the tight on in the group, so making bad financial decisions is raised here like no other time there is. Keep an eye on this and ensure that you don’t overstretch yourself to stay financially happy.


There are many scam artists around the globe whose sole intent is to separate you and your money through a set of devious means. These always spike when a new technology is introduced, or when a new and ingenious method of scamming is devised. It’s important to stay in the loop and ensure you keep a lock on your financial and identity security.

Making sure you shred important documents with your identity on them, having adequate antivirus protection on your phone when you’re logging into your online banking, using safe and secure passwords to access your financial accounts, or only using good, reputable services to spend your money with can all help you keep on top of your financial safety.

As well as keeping on top of your online financial security, it’s important that you stay safe in the real world. Never keep too much cash on you at one time, and always check the card entry slot at an ATM to make sure a false card reader hasn’t been installed.

A search of the internet can reveal the devious contraptions that creative scam artists construct to swipe your details without you knowing. This is important to stay on top of. Every month or so, search online for the latest scams so that you know how to react if one does approach you. A little financial awareness and intelligence help your hard earned cash stay in your pocket and bank account.

Never Budgeting

Repeated impulse buying, bad tax calculations and never putting money towards your priorities are often the most efficient ways to get yourself in a financial rut. It’s important to be aware as early as possible because you’re going to be managing your finances for most of your adult life. Setting up good budgeting habits as soon as you can will allow you to allocate money in the places you’d most like to place it, and give yourself a happy financial progression that encourages, even more, financial wisdom. Getting into this positive financial growth is much better than it’s opposite. Consider using specialty budget tracking applications like YNAB (You Need A Budget) to stay on top of everything.

Duly followed, these tips are sure to help even the most financially reckless person change his/her ways and proceed on the path to a higher financial understanding.

Leave a Reply

Your email address will not be published. Required fields are marked *

17 + 11 =

This site uses Akismet to reduce spam. Learn how your comment data is processed.