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5 Financial Mistakes to Avoid

  • May 23, 2017
  • By Grace
5 Financial Mistakes to Avoid

Whether you are looking to reduce debt or simply want to boost your savings and have a secure financial future, there are numerous adjustments that you could consider to reduce your spending. Often people will forget to reassess their finances to look at ways they can make savings, and this can lead to huge amounts of unnecessary spending.

These are 5 of the biggest mistakes you need to avoid:

Not comparing utility suppliers

If you are continually renewing your existing insurance policies and continuing with the same gas, electricity, broadband provider, etc. then you could be paying a lot more money than truly necessary. Doing some research at least every year will reveal that there are many other companies that will offer reduced rates or introductory discounts. Use comparison charts and get a number of quotes from different suppliers to see if you could reduce your bills.


 Taking out credit cards with high interest

Lots of people take out credit cards, and that isn’t always a bad thing, but if you are taking out a credit card with high interest and not paying it off each month, you are probably losing money unnecessarily. Credit card companies are so competitive that you will see many credit cards offering 0% interest for certain periods, so if you do have an outstanding amount and you don’t have 0% interest, switch to a company that does.

 Buying a new car

Buying a new car is brilliant but when you see how much the value drops from being brand new to having done a few miles it can amount to thousands of pounds, depending on how much you spend on the car. You are much better off buying relatively new used cars as they hold their value for longer. Take a look at some of the car valuation sites and get a value for a car that is a few months old and compare it to the price of buying brand new to see how much you could save.

 Not setting a budget

Setting a budget ensures that you will closely monitor your spend to check when you are getting close to reaching your budget. To monitor your finances effectively it is a good idea to set up online banking that provides alerts whenever you are close to reaching a certain amount.

Selling or buying a house at the wrong time

The value of houses changes significantly over periods of time. There can be many different reasons for the variance in house values, but it is important to keep an eye on the trends of house values before opting to buy or sell. Over a couple of years, some houses can drop or gain tens of thousands of pounds in value which could have a huge impact on your own financial situation. First-time buyers can often be tempted to buy when the house prices are really high rather than waiting a bit longer for them to come down. Sometimes patience and looking at renting options can end up saving you significant amounts.

By Grace, May 23, 2017
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