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Big Money Mistakes You May Be Making

Big Money Mistakes You May Be MakingWe’ve all made money mistakes. I don’t think anyone has ever said “I’ve never made a money mistake in my life.” If so, I’d like to meet that person! :)

Even if you have made money mistakes, it’s never too late to change your life around. Below are a few money mistakes that you may be making:

 

Taking Out Too Much in Student Loans.

I’m guilty of this one. Luckily my student loans are now paid off, but I would have had thousands of dollars less if I wouldn’t have taken so much out when I was in college.

My problem was that I would always take the full amount out each time. With student loans, the money goes towards your tuition, but whatever is left over is just deposited into your bank account as cash.

I never really thought about how taking an extra $1,000 or $2,000 each semester would hurt me, but it did!

 

Thinking You’re Too Good To Save Money.

When I had my day job, I used to always bring my lunch. There were two reasons for this: a) I wanted to save money; and b) in order for me to get lunch it would have meant that I would need to get in my car and actually go somewhere (I was too lazy for that).

Occasionally, I was made fun of for some of the things I would do to save money. Some thought I couldn’t afford to eat and I even had people offer to buy me lunch.

This also applies to coupons. I know so many people who think that they will be looked down upon for using coupons. I just don’t understand that. WHO CARES IF YOU USE A COUPON?

Anyone can save money, and there should be no shame in doing so.

 

Not Thinking About The Full Cost.

I have seen this many times. You buy an item without thinking about the full cost of it – you only look at the sticker price. You may be able to afford the sticker price, but can you afford the whole thing?

Many things have additional costs:

  • If you buy a house, other costs include home insurance, property taxes, utility bills, repairs, and so on.
  • If you buy a car, other costs include car insurance, gas, maintenance, taxes for buying the car, yearly personal property taxes, and so on.

 

Spending More Money Than You Make.

If you are spending more money each month than you make, then you are making a money mistake. You need to figure out what is going on so that you can fix this problem.

Are you trying to keep up with the Joneses? Are you not making enough money each month to support basic life necessities? Do you have too much debt?

Whether you are spending $100 over your budget each month or $1,000, you need to fix this money mistake.

You can start fixing this money mistake by creating a budget. You need to list your income and realistic expenses and see where your problem is.

 

Buying Things Because You Think You Deserve It.

Don’t get me wrong, I think that money is meant to be enjoyed. However, if you are going into thousands of dollars of credit card debt because you think that you deserve to own things, then you may have a spending problem.

Something that you may want to think about is why you think you deserve things. Is it because another person can afford it so you think you should be able to as well? Or, is it because you want to buy things to cure a bad mood?

Also, does buying things actually make you happier? Or does it just lead to you buying even more things?

 

What money mistakes have you made or seen?

 

Do You Spend $12,000 Each Year To Look Good?

Do You Spend $12,000 Each Year To Look Good?The other day I came across an article that said men and women spend around $15,000 in their lifetime to look good.

At first that amount of money seemed like a lot, but when I really thought about it, $15,000 really did not seem like enough at all.

When you include, beauty products, hair cuts, spa treatments, clothing and so on, the number is probably much higher than $15,000 in your whole entire life.

In fact, I came across another article that said the number is actually around $12,000 per YEAR (according to Siren Magazine). $12,000 a year sounds like way too much to me though.

$12,000 a year would be around a third of what the average person makes a year. Maybe people are using personal loans such as from Yes Loans to fund their beauty expenses?

Here is how much I estimate that I spend each year:

  • Beauty products (lotions, makeup, brushes, nail polish, etc.) – $250
  • “Normal” items (toothpaste, toothbrushes, razors, etc.) – $75
  • Haircuts and coloring – $250
  • Fitness – I’m not really sure how to estimate this since we just bought a home gym. The ongoing cost is $0 though since everything is paid for.
  • Clothing and shoes – $1,500.

 

That makes my grand total of how much I spend each year to look good at $2,075. The number is a lot less though if I don’t include my estimate for clothing spending.

I used to spend a lot more to “look good,” but I now do many things to lower the amount that I spend. Below are different ways for you to lower the amount that you spend:

 

Go for the natural look.

If you want to save the most money, then staying your natural self will most likely save you the most amount of money. For example, if I wanted to be blonde, that’s going to cost more than if I stayed with my natural brown color because of the upkeep that would be required.

The same goes for if you want to tan, you want to wear makeup, and so on.

Also, if you decide to go completely natural and go without makeup, beauty products, or clothing, your cost would be $0 each year! Haha, that wouldn’t work for most though because clothing is pretty much a necessity for life… :)

 

Find an awesome hair stylist that is in your price range.

I have been going to the same girl for over a year now, and no one can beat her prices. I refer all my friends to her because she is affordable and always does a great job. A cut and color is usually less than $65 if I use her, which is better than what most of my friends pay for their stylists (usually $150+).

It does help that I don’t do much with my hair, I usually only color it variations of dark red and/or brown. I’m not gutsy enough to do much else!

 

Take surveys and/or mystery secret shop.

This is something that I used to do all the time so I could save money on my beauty spending. There were many beauty mystery/secret shops available when I used to mystery shop.

I would sign up for mystery shops for products that I already used (such as Estee Lauder). This way I would get the product for free, and I would also get paid something around $10 to do the shop. It was great and definitely a win-win for me.

 

Try makeup dupes.

I am not the type of person to spend $500 on face lotion. I am also not the type of person to spend $100 on face lotion. There are plenty of makeup dupes out there that can save you money.

A makeup dupe is when there is a cheaper version of an expensive product that almost works the exact same. Here is an article from Buzzfeed that lists 9 makeup dupes.

 

How much do you spend each year to look good?

What do you do to lower your costs?

 

P.S. Lets try to not get into the politics of it all about why people feel the need to spend money on beauty. If you can afford spending money on beauty, then I see no problem with that. People can spend their money on what they want. Also, many people feel more confident when they look good, which is great. Many people also enjoy clothing and makeup, so no need to judge others about that also :)

 

Reader Question: I’m Getting a Divorce

2536358399_c16896768f_zOver the past month or so, I have received quite a few Reader Questions. The readers below asked for my help, but they also asked if I could publish their questions on my website because they want to hear multiple opinions.

I’m not sure if either of these two readers will reply (because they want to remain anonymous), but they just might.

I know that they will read your responses though, so please try to help these awesome readers out. I have changed some of the wording in order to protect their identities and to compact their questions. I have also changed their names.

Past Reader Questions include: How to Split Bills Without Resentment and We have $200,000 in Student Loan Debt.

 

1. I’m drowning in debt. This reader question is from Joe:

I have a lot of debt and I don’t know what to do first. I make around $55,000 a year before taxes. Here are some of the facts:

  • I have $16,000 in credit card debt, and it’s climbing.
  • I have $14,000 in car debt, and it’s not even a new car. I made a huge mistake and the car is already having major problems.
  • I also have $44,000 in private student loans.
  • The interest on everything is high (all above 8%).

 

I guess I just want overall help. What should I do? I have extra time to work, but not a whole lot of time.

 

2. I’m getting a divorce. This reader question is from Katie:

I have a 401K, a small business, and rental properties that my ex-husband and I split. We both put the same amount of work into everything, and we are splitting everything right down the middle.

We have decided to cash everything in and sell it all, so that we can each just get cash and go in our separate ways.

Besides those three things (401K, a small business, and rental properties), I have nothing else saved except for a small emergency fund. I have no debt except for the mortgage on each property, and I will be making money from the sale of each property.

I’m not sure what my very first step should be. Should I invest it all? Look for an advisor to help me out?

 

So what would you do if you were either of these people?

Let us know in the comments below. You can help them both or just one. All help is appreciated! Also, please be kind. Keep in mind that this is a person who is seeking help.

 

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