Reflecting & Learning From Your 2021 Financial Mistakes
Everybody makes financial mistakes at some point in their lives. They may feel like the worst situations to be in, but they actually help to guide us in the future. Once the mistake has occurred, we can’t travel backward in time. Therefore, it’s important that we take each misstep as a lesson in order to learn what not to do when approached in a similar situation. Managing your finances and making decisions around them is a skill that is strengthened over time. However, without reflecting, identifying, and learning from your downfalls, you’ll never strengthen it. So, with 2022 right around the corner, here is the perfect opportunity to look back on 2021 and highlight the pros and cons of your finances. This will enable you to recognize what you need to work on in order to progress financially into 2022.
Here are some of the most common mistakes people made throughout 2021:
COVID-19 has resulted in an increase in screen time for many children and adults across the country. Despite this being good for many businesses, it’s definitely not the best for our bank accounts. With the boost in social media sales and promoted items from influencers, many people are more inclined to purchase things they may not be able to afford in order to keep up to date.
Making a purchase every single time something new is trending will definitely dent your bank account. We understand how exciting it is to treat ourselves, especially with something we have really wanted. However, you need to ask yourself if you’re buying it to please yourself or if you’re buying it to keep up to date. No matter how small or large the price tag is, every purchase negatively impacts our balance, potentially harming our finances. After all, these current trends will soon leave the limelight, and you’ll probably regret your purchase.
Living Paycheck to Paycheck
Many Americans are worried about making their finances work and positioning themselves one step ahead in case of any emergency. However, if you continuously try to improve your current situation without any consideration, you could find yourself living paycheck to paycheck. Nobody wants to be struggling and scrambling at the end of the month. But, without any savings, you could find yourself in a very stressful situation. You never know when you’re going to face any unexpected troubles. Therefore, many financial planners recommend putting away adequate savings (roughly 3 months’ worth of expenses) to allow you to stay financially healthy and hopefully avoid living paycheck to paycheck.
If you, unfortunately, don’t have these savings and you’re hit with an expected bill with nowhere to turn, here at LoanPigUSA we can help. We offer payday loans from $500 to $2000 over a short period of time.
Living Without A Budget
Living without a budget is like living without any sort of routine. If you want any kind of financial security or safety throughout your life, you will need a budget. At the moment, the total amount of debt in the U.S. is at its highest. Along with this, the average American debt per adult is over $58,000, with 77% of households having some type of debt. So, if you follow in the footsteps of most Americans, your financial skills haven’t quite been perfected yet. But, that’s ok, there is plenty of time to grow and develop your skill. Creating a budget is something that takes time and effort, it certainly isn’t an overnight process. Thankfully, here at LoanPigUSA, we have provided plenty of information on how to find the perfect budget for you. For more information, click here.
Your specific financial mistakes are personal to you. Therefore, your 2021 errors may be completely different from the ones we have listed above. Identifying the problems within your spending habits or general financial circumstances will allow you to move forward into 2022 and remove all of the negative aspects holding you back.