Posted on January 8, 2010 - by Aaron Lau

Personal Finance Mistakes To Avoid

Personal finance often is about the things you should do, but it is actually the things that you do not do that are easier to carry out. Some mistakes those just starting out to work should avoid.

1. Build any sort of consumer debt (credit card & credit line debt)

This is an absolutely killer. We all have unlimited “wants” and we want it now. So money is spent on ’something’ you wanted. That ’something’ didn’t bring happiness, so you bought other ’somethings’. It’s a vicious cycle.

2. Wait on saving for retirement

The common mentality is “I’m not worried, I have decades to save for retirement”. But any small amount set aside will enjoy the effects of compounding. Think twice between spending and saving.

3. Buy a car that you do not need

It is a liability, once purchased there is no going back. It will depreciate the next day took the keys and drove it home. Consider carefully if it is such a necessity. Read more…

Related posts:

1. Personal Finance Part 12 – Indebtedness
2. Matrix for Personal Finance Planning
3. Personal Finance Part 13 – Differentiating Between Needs and Wants