3 Biggest Money Mistakes People Make in 2022
As we find ourselves in 2022, many things have changed compared to only a few short years ago. Yet, one thing will never change, and that’s how people use their money. Regardless of which day and age we are in, people will always make poor financial decisions, and find themselves nearing retirement without a penny to their name.
The great news is that it’s possible to avoid the same fate. By learning from other’s mistakes before you, you can implement the right financial tips into your lifestyle, and have a happy and healthy financial future.
Without further ado, here are some of the biggest money mistakes people make in 2022, and what you can do to avoid them.
Impulsive Online Purchases
We live in the age of instant gratification, where we can simply add to our cart and receive our purchase as early as an hour after adding our payment details. Unfortunately, many of these instant purchases are ultimately frivolous and weren’t necessary in the big picture.
Even though buying a few items each week on Amazon or your other favorite online store may seem like a harmless vice, you may be surprised to find that these small impulsive purchases add up to thousands over the course of the year.
Try to set spending limits for yourself, by creating an online shopping budget. Once you start to keep track of how much you’re spending online each month, you’ll start to understand just how much money you’re blowing on foolish and unnecessary products.
Paying the Minimum Due
While it may seem practical and downright affordable to make big purchases using a credit card or alternative multiple payment agreements, you’re only setting yourself up for more and more debt. If you do make a credit purchase, you’re better off paying as much as you can on each payment rather than the minimum due.
Otherwise, you’ll find yourself in an endless chasm of minimum payments which wind up costing more in the long run than had you paid for something outright. Remember, credit always comes with a price, and the price is interest.
Buying Everything New
It may seem like a smart purchase decision to buy something new rather than used. After all, logic points to a new product lasting longer than something that’s already been used. Yet, this is not always the case.
You can often find products which aren’t just as good, but in some cases even better. Purchasing a used car, for example, can save you thousands of dollars, and potentially last much longer than a new one depending on the make and model.
This also goes for electronics, and furniture. Before buying something new, always look at used options. Not only will your wallet thank you for it, but also the earth!