People make dumb mistakes with their money all the time. When asked in 2019, approximately 126 million adults in the United States admitted to Finder.com that they had made at least one money mistake in their lifetime.
Aim to save at least three months of living expenses in your emergency fund. You could lose your job and still fund your lifestyle for at least three months. You’ll have ample opportunity to find a new job.
When automating your monthly bills, have enough in your account to avoid overdraft fees. In addition, always check your statements. This is true even if they are automatically paid every month.
Many companies will match your contributions to a certain percentage of your salary. This is free money. If you aren’t contributing at least enough into your 401(k) to get the full company match, you are leaving money on the table.
“Lifestyle inflation” is when spending increases along with income. In other words, the more you make, the more you spend. It is a trap that many people find themselves in.
Automotive loans make the numbers look even worse. Not only are you paying full price for a car losing value, but lenders charge an interest rate on the amount borrowed. This means you’re paying even more than the sale price.