{"id":26562,"date":"2024-01-04T23:27:40","date_gmt":"2024-01-04T23:27:40","guid":{"rendered":"https:\/\/www.lendingstream.co.uk\/blog\/?p=26562"},"modified":"2024-01-07T17:57:44","modified_gmt":"2024-01-07T17:57:44","slug":"common-financial-mistakes-to-avoid","status":"publish","type":"post","link":"https:\/\/www.lendingstream.co.uk\/blog\/common-financial-mistakes-to-avoid\/","title":{"rendered":"4 Most Common Financial Mistakes to Avoid In 2024"},"content":{"rendered":"\n<p>Living life for today is the only way to live right? No, that\u2019s wrong. Spending everything you earn just so you can have what you want today is not the best way to live. Yes, you may have moments of happiness, but they\u2019re short lived when you run out of money. The key is to <strong>stop making financial mistakes<\/strong>. That way your money can still help make you happy but in different ways.<\/p>\n\n\n\n<p>Here we\u2019ll look at the most common financial mistakes to avoid in 2024. And learn how to make your money work for you.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f295ea38258\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f295ea38258\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/common-financial-mistakes-to-avoid\/#1_poor_planning_and_budgeting\" >1. Poor Planning and Budgeting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/common-financial-mistakes-to-avoid\/#2_living_on_loans_and_credit_card_debt\" >2. Living on Loans and Credit Card Debt<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/common-financial-mistakes-to-avoid\/#3_not_having_an_emergency_fund\" >3. Not Having An Emergency Fund<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/common-financial-mistakes-to-avoid\/#4_not_paying_into_your_pension\" >4. Not Paying into Your Pension<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"1-poor-planning-and-budgeting\"><span class=\"ez-toc-section\" id=\"1_poor_planning_and_budgeting\"><\/span><strong>1. Poor Planning and Budgeting<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Do you know where your money goes? Or do you find you run out before your next pay comes in? If you don\u2019t allocate every penny of your income towards an expense or savings, then you\u2019re making a big mistake.<\/p>\n\n\n\n<p>You\u2019ve no doubt heard about how important it is to have a monthly budget , but you hear about it for a reason. When you know how much you\u2019ve got to spend on something, once that money\u2019s gone you stop buying it. For example, if you allocate \u00a3100 a week on food, plan how you\u2019re going to spend that during the whole week. Don\u2019t swap a meal for a takeaway one night if it means spending \u00a320 over your budget. Be strict with yourself.<\/p>\n\n\n\n<p>Having a monthly budget is only any good if you stick to it. If you\u2019ve got spare cash, put it into savings or <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-pay-off-a-loan-early\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>reduce your loans<\/strong><\/a>. Having this level of control over your spending will help you in the long run.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"2-living-on-loans-and-credit-card-debt\"><span class=\"ez-toc-section\" id=\"2_living_on_loans_and_credit_card_debt\"><\/span><strong>2. Living on Loans and Credit Card Debt<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>How much do you owe on <a href=\"https:\/\/www.lendingstream.co.uk\/loans\/short-term-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>short term loans<\/strong><\/a>, <a href=\"https:\/\/www.lendingstream.co.uk\/loans\/payday-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>payday loans<\/strong><\/a> or credit cards? Has borrowing money become a way of life for you? If so, look to change this habit, it\u2019s not good for you.<\/p>\n\n\n\n<p>Whether you\u2019ve got a good or bad credit score, there\u2019s likely to be a <strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-find-out-if-a-loan-company-is-legit-or-not\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-find-out-if-a-loan-company-is-legit-or-not\/\" rel=\"noreferrer noopener\">company who\u2019ll lend to you<\/a><\/strong>. The problem with this is that it gives you something to fall back on. It sends a message that you can have what you want, when you want it. But is the item you want to buy worth being in debt for? The more you owe, the more of your income you have to give up in repayments each month. This leaves you with less and less money to spend. Before you know it, you have so much going out in repayments that you\u2019ve got to borrow just to make ends meet.<\/p>\n\n\n\n<p>Borrowing money to pay for things does give you instant gratification, but it\u2019s often short lived. When you have to save to pay for something, you appreciate it more.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"3-not-having-an-emergency-fund\"><span class=\"ez-toc-section\" id=\"3_not_having_an_emergency_fund\"><\/span><strong>3. Not Having An Emergency Fund<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Life has a way of throwing <strong><a href=\"https:\/\/www.lendingstream.co.uk\/money-worries\/financial-problems\/\" target=\"_blank\" rel=\"noreferrer noopener\">unexpected expenses<\/a><\/strong> at us. They creep up at the worst of times and we have to find the money to pay for them. This often means borrowing the money, which can be at high interest rates. That\u2019s why building up an emergency fund should be an essential part of your monthly budget.<\/p>\n\n\n\n<p>If you\u2019re spending all your money look for <strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/best-ways-to-cut-back-on-expenses\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.lendingstream.co.uk\/blog\/best-ways-to-cut-back-on-expenses\/\" rel=\"noreferrer noopener\">expenses that you can cut back on<\/a><\/strong>. Then set up a standing order to put this money into a savings account. It might feel hard to begin with, but you\u2019ll be glad you\u2019ve got an emergency fund there when you need it most.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"4-not-paying-into-your-pension\"><span class=\"ez-toc-section\" id=\"4_not_paying_into_your_pension\"><\/span><strong>4. Not Paying into Your Pension<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It\u2019s easy to live for today and think that tomorrow will take care of itself. But think how much nicer tomorrow will be knowing you\u2019ve got money there waiting for you. A pension is safeguarding your future life, so you\u2019ve greater choice in how you live in retirement.<\/p>\n\n\n\n<p>The great thing about paying into a pension is that you can get extra money added to it for free. A lot of companies will contribute to a pension you pay into which helps top it up for you. Plus, you get tax relief on your pension payments.<\/p>\n\n\n\n<p>With medical advances people are living longer, healthier lives. This means having a pension is the smart thing to do. Don\u2019t make the mistake of thinking you\u2019ve got plenty of time before you retire. The earlier you start paying into it, the longer it has to grow into a big pot of money for you.<\/p>\n\n\n\n<p>There are always <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-stop-spending-money-on-unnecessary-things\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-stop-spending-money-on-unnecessary-things\/\" rel=\"noreferrer noopener\"><strong>ways to reduce unnecessary spending<\/strong><\/a>. Track where you overspend, look at what you can go without. You can then start diverting your money into paying off debts or building up your savings. Being smart with your money will help you <strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-set-financial-goals\/\" target=\"_blank\" rel=\"noreferrer noopener\">achieve your financial goals<\/a><\/strong>. Look after your money and your money will look after you.<\/p>\n\n\n\n<p><strong>Disclaimer:<\/strong> Please note, we are not providing financial advice. Our blogs are written for informational purposes only.<\/p>\n\n\n","protected":false},"excerpt":{"rendered":"<p>Living life for today is the only way to live right? No, that\u2019s wrong. Spending everything you earn just so you can have what you want today is not the best way to live. Yes, you may have moments of happiness, but they\u2019re short lived when you run out of money. The key is to [&hellip;]<\/p>\n","protected":false},"author":48,"featured_media":26564,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[139],"tags":[],"class_list":["post-26562","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money"],"_links":{"self":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26562"}],"collection":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/users\/48"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=26562"}],"version-history":[{"count":2,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26562\/revisions"}],"predecessor-version":[{"id":27873,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26562\/revisions\/27873"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media\/26564"}],"wp:attachment":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=26562"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=26562"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=26562"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}