Financial Mistakes To Avoid in Getting Out of Debt Series

Financial mistakes such as spending too much on unnecessary things, living on borrowed money and buying a new car are all the financial mistakes we covered on the previous page. This time we will discuss how keeping up with the Joneses to keep up with the illusion that one is wealthy can lead us to trouble. So are paying for subscriptions that are not essential and leaving oneself without a safety net.

Keeping Up With The Joneses

Let us see how keeping up with the Joneses can lead us to financial trouble. Competing with other couples to make one appear richer than they are can be such a tiring activity to the point you lose focus on your marriage and on the needs of your partner. This can lead to disastrous result not only financially but to the marriage as well.

Focusing on material things and buying stuff to better what the other people have can lead one to living beyond ones means. It means just living from paycheque to paycheque and it is indeed a precarious situation that some people do not even realize. Why do I say this? It is because we keep buying luxury items judging from the fact that luxury malls are flourishing while discount stores are closing.

Yes many are broke but you can't tell from the long lines to buy iphones. Others still insist on drinking lattes each, one costing $3. Are we going to keep splurging just because we have gotten back the job we lost during the pre-recession? Well, that could just send us back to the bursting of the housing bubble, back to financial ruin once more.

So how do we solve this recurring problem? Easy, if we stop splurging on the $3 lattes and buying luxury stuff, perhaps the money we save could go to an emergency fund. If we can afford buying those unnecessary stuff, perhaps we can also afford to change our habits for what we cannot afford is go below the poverty line. This could be the result of the financial mistakes that can easily be avoided.

This is what can happen if we focus too much on material things. Instead there are many things around your community you can enjoy for free. In fact, the best things in life are free. Be contented and learn to be happy with your family and friends. These are the things that make life rich.

Paying Subscription Fees For Things We Do Not Need

The payment is never ending for Cable TV for example when there is no good TV to watch. Then you don't get good service from the customer service. They make mistakes after mistakes that you have to spend time to get them corrected. I am one to talk when I am guilty as charged. It is a good thing I always get a confirmation number for the call or else I will be left holding the bag.

Here are other services that you pay subscription fees for like pagers and cell phones, video games and radio shows. What is good to do here is to say no to even a thousand things so we do not get on the road to financial problem. Here are some ways you can have TV and not make it cost an arm and a leg without good customer service. This is one of the financial mistakes that could be a drain on the budget.

Here's what we can do to cut off your Cable TV and still get it at the fraction of the cost. There is a software called Playon Software that allows to stream online video from other services straight to your TV. There is a one-time fee of $49.99 that is on sale or an annual fee of $19.99. There is also a 14-day free trial so you can try it before you commit yourself.

There are a lot of online video streaming services for the above like Hulu.com, CBS.com,  Amazon.com Instant, Youtube, ESPN,  Comedy Central, and HGTV that support the Playon software!  Additional channels are coming on all the time as the software also now supports plugins. Some of them are the Food Network, NBA/NFL content, and others! And the best thing is that it is all free.

Leaving Oneself Without a Safety Net

Uncertainty is a part of life and it is up to us to build some kind of protection. We all want lovely things; just don’t let them get out of hand. We know there are many things in the budget are necessary so we keep within those things we cannot live without like food and shelter. Doing this could help us avoid the financial mistakes that people keep making.

Over and above that we should evaluate each expense on the basis of whether it can make our disposable income so low that we will have to scramble at the end of the month to pay the bills and be unable to save. Worst, how about if there are unexpected expenses that will come along? Sometimes this is what force people to go in debt.

This is the reason why all should have an emergency fund, some kind of cash cushion that will take care of emergency situations. Having an emergency fund is like a safety net that will help anyone weather any storm. This is the best defense anyone can have to avoid making financial mistakes. The trouble is that a lot of people still avoid building an emergency fund. If you need help on this, here’s how to build an emergency fund.

There you have three more things we should ponder on so we can build our wealth and security and protect it from harm. We will learn to be content with what we have and save as much as we can for the future. See if this Emergency Money Machine will help you. For the next page we will explore more financial mistakes. Tweet Google +1
Please sign up for our free ezine entitled “Save Money Today” Newsletter. We will publish this once a month where you will read about some encouraging news, positive experiences from others who want to share them with you. And you can unsubscribe anytime.

If you want to make any comments or other feedback, please fill in the contact form below so I can send you my email address. This is to avoid spam.

This Form cannot be submitted until the missing fields (labelled below in red) have been filled in
Contact Us
Please note that all fields followed by an asterisk must be filled in.
First Name*
E-Mail Address*
Please enter the word that you see below.

Refresh Financial Mistakes - Step 3: Build Wealth and Security - Avoid Financial Mistakes

Return from Avoid Financial Mistakes to Debt Challenges Home Page for the Disclaimer.

Site Map of Debt Challenges for Easy Navigation br/>
Where Do You Want to go Next? You didn’t find what you were looking for? Search for it at Google right here:


=

Your first paragraph ...