Bad financial decisions that you have to avoid
Has it ever happened that you have opted for a choice reasoning related to money, was it correct and after a while you realized that it was not right?
Surprisingly, it is undeniably more typical than we might suspect.
Bad money decisions cause unwanted results.
The problem is that many people don't understand the error until the point of no return is passed.
To summarize, here are four extremely terrible and routine money options that you should avoid no matter what.
These financial decisions are absolutely never made
Buy a house you can't stand
Buying a home is one of the most important financial choices we will make in our lives.
Not surprisingly, we sold our future by granting ourselves the reimbursement of a large amount of cash that we do not have today.
Also, in case we don't, we will have problems.
Many people contract thinking about the measure of spending from month to month. In case that figure fits you, the mortgage loan and the purchase of the house are also coordinated.
The problem is that to understand that the number is moderate, extend the mortgage loan payment for 30 or 40 years and ignore the risk that the dividends on obligations multiply by themselves.
Therefore, the house ends up costing significantly more than it seems.
For example, for a 40-year mortgage loan of 180,000 euros with a normal enthusiasm of 4%, we would end up paying 361,098 euros. In fact, just double. Amazed?
Renew your vehicle a lot.
Another erroneous and very normal option related to money is to recharge the vehicle from time to time.
Vehicles lose an incentive after a while, a large number of people choose to transform it every 4-6 years to keep the remaining incentive for the store at zero.
So to speak, they seek to "beat" the old vehicle so that they can buy another vehicle.
The problem is that they spend their entire lives paying the vehicle obligation. Please transform into a fixed cost from month to month, a cost that should have been extraordinary and convenient.
Remember what we told you once: it is your vehicle's fault that you are still poor.
Don't start saving as soon as possible
There are people over 30 without having a single euro saved. There are even those who live so up to date that the crisis of the 40 with the current account passes to a minimum.
This is a mistake and a very serious irresponsibility. Living without savings means living with a single payroll of homeless people.
The excuses for not saving are several. From "I am a milurista and my salary does not give more" to "I have a lot of expenses due to children" or "It is still early, I will save when a few years pass".
All are excuses as a result of the little culture of savings that exists in our country.
Not knowing how to manage day to day
We leave for last the most common mistake of all: poor economic management on a day-to-day basis.
There are people who do not know exactly where the money is going.
They come to the third week of the month and wonder, what happened to my money?
In this case, we are not talking about a single bad economic decision, but a set of small economic decisions that are made daily and that make the family economy a disaster.
To prevent this from happening, two tricks: write down each of your expenses and make a monthly budget. There's no more