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Financial planning 5 money mistakes that you will live to regret in the future

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These financial decisions could haunt you for a long time

We all happen to misuse our money from time to time — whether it’s an impulse buy or just poor planning.

But it is worth noting that making a serious financial mistake that can haunt you for years, maybe even a lifetime.

Speeding toward financial independence is easier when you know which financial choices can slow you down.

We all happen to misuse our money from time to time — whether it’s an impulse buy or just poor planning.

 

So to help you avoid making some seriously bad money decisions and keep your financial life on track,here is a list of some money mistakes that could end up haunting you for a long time:

1.Ignoring your credit

Choosing to ignore your credit reports and credit score for a variety of reasons is one of the gravest mistakes that a person can make. Despite how bad things may be, you will never be able to get ahead financially if you don’t know what you’re facing.

Your credit is one of the most important aspects of your financial life — it affects things like your interest rates (which can cost you a lot of extra money over time), your ability to make big purchases (like a car or house) and it can even impact your job.

It is important to keep tabs on your credit so that you know what you’re dealing with. With that in mind, you can make a plan to start getting things back on track.

2. Spending all your money on your kids

Save for retirement or your kids' college fees?

While many parents feel obligated to foot the college bills for their kids, it is necessary to have sufficient savings for retirement. No one plans to run out of money in retirement, so it’s critical that you plan and save as much as possible ahead of time.

There are tons of opportunities to get help with the cost of college — scholarships, grants etc.

If it comes down to either you saving for retirement or paying for your kid’s college costs, your kid can get a job to help with the bills for school

3. Living beyond your means

Do not bite more than you can chew. If you want to save money, you have to start living within your means — spending less than you make.

Implementing this habit early on will allow you to really understand the power of financial freedom and independence — allowing you to save more money and make better decisions throughout your lifetime.

4. Lending money when you’re already struggling

It can be pretty difficult(not to mention emotional)to lend money to family and friends. This is especially true if you’re already struggling financially.

Before you decide to help a loved one with money, make sure you can cover your own bills.

5. Buying more house than you can afford

Committing too much of your monthly income to mortgage payments is risky — and it’s a bad idea. You only want to spend up to one-third of your monthly income on housing costs, which include mortgage payments, insurance fees and any homeowner’s association fees.

So when you’re figuring out how much house you can afford, make sure to factor in other important expenses besides just bills — things like saving for retirement, emergency expenses (medical, car repairs etc.) and even the cost of furnishing your brand new home. You honestly don't want to be stuck in an empty house for two years because you can’t afford to buy anything to put in it.