Mistake to avoid.... For better life

Hi reader,

Here is some mistake, we doing continuous without understanding, it's effect on our life. If we avoid this mistake, then you can have better life and better wealth....

Mistake #1: Borrowing Too Much

Borrowing for purchasing unwanted things

There is a fine line between borrowing and being in debt. From a financial point of view, it may seem counterintuitive to say that borrowing money can make you rich, but there are certain situations in which this is true. For example, buying a house or investing in your education is more likely to lead to increased earnings and a higher net worth than renting an apartment or failing to attain an advanced degree. Borrowing money for purchases like these is typically considered good debt.

However, there are some instances when borrowing too much can put you at risk of becoming poorer rather than richer:

Taking out a mortgage on an expensive home you can’t afford

Using credit cards to pay for things you shouldn’t be buying 

Mistake #2: Boring Budgeting

Budgeting—the art of tracking your income and expenses, then using that information to make financial decisions—isn't a new concept. A budget helps you understand where your money is going and predict how much you can spend in the future. Creating a budget is simple, but boring budgets are mistake #2 because they don’t get used consistently.

A simple rule of thumb to live by is the 50/30/20 rule: half of your income should go toward needs such as shelter, food, transportation and debt payments; 30% should go towards wants like entertainment or vacation; 20% goes toward savings or retirement contributions. This rule can be helpful for getting started with a budget, but it’s important to remember that everyone's circumstances are different so there isn’t one ideal budget for everyone.

You can create a budget by listing out all of your fixed monthly expenses (rent, car payments, insurance) and all other expenses (food, travel) from the previous month. Then estimate how much you expect to spend each month on these categories in the future. You can use this estimate as an easy way to see if you're spending more than expected on variable expenses like eating out or commuting costs and adjust accordingly. If you're struggling with variable expenses, it might be more effective to start tracking them daily instead of estimating them monthly since small overspends every day can add up over time. Spending too much on clothes? Consider taking public transit instead of driving every day—it reduces gas costs while making your commute feel shorter as you sit back and relax instead of fighting through traffic!

Mistake #3: Paying Too Much in Fees

Your investments, bank accounts, and credit cards all have maintenance fees. These are ongoing costs that collect monthly, quarterly, or yearly. They’re often small in the scheme of things (often less than $10 per month), but it adds up to real money over time.

The solution is simple: Avoiding these fees is as easy as shopping around. When you pay for a service or product you need, make sure that the price is reasonable. Every dollar counts when you are trying to build wealth!

Here’s where these hidden costs typically show up:

Investment accounts - investment companies charge an annual fee for every account you have with them (e.g., your 80c and your HRA). You can easily see what this fee is by researching online before opening an account. If yours charges more than 1.00%, it’s probably too much!

Credit cards - credit cards always charge a maintenance fee each year to keep the account open; in addition, they also charge interest if you carry debt from one month to another (anything above 40% annual interest rate should be considered too much here). The way around paying any of these fees would be using cash or debit card instead whenever possible; otherwise try finding better deal online because some banks offer zero-fee/low interest rates options here so there’s no reason not do little research first!

Conclusion:

Did you relate to any of these mistakes? I hope you learn something new. If you need advice then talking to supportive friends or family can help when going through a difficult time in your life. Seeking professional help like a counsellor for your financial situation or financial growth

Leave a comment down below about your encounters any of this, if you'd like. Please feel free to share any thoughts your mistake have as well. If you like this blog, then share it with your friends and family.