• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

HeroRat

herorat

  • Home
  • About
  • Family
  • Lifestyle
  • Traveling
  • Beginners
  • Technology
  • Blog
  • Contact Us

Fix These Simple Mistakes & You’ll Save Your Finances

May 16, 2018 by Maya

Correcting a mistake isn’t always simple, especially when it comes to your finances. You may know there’s something wrong with the way you’re spending your money, but the solution sometimes is not so obvious. If you’re scratching your head over your budget, you could be making two of these simple mistakes. Keep reading to learn how you can solve them, quickly and easily.

Living without a cushion

No, this mistake isn’t related to the couch cushion you sit on each night as you binge-watch the latest Netflix original. Though the butt groove you’ve created is comfortable, it doesn’t affect your finances one way or the other. Living without acushion usually means:

  1. You live paycheck to paycheck. Spending as much as you bring in each month (or more thanks to credit cards) means you have no cushion between your income and your expenses. You break even after you’ve paid for everything — or you go into debt a little bit more each month —despite bringing home regular paychecks.

 

  1. You have no safety net.A safety net is your savings. Whether you call it a nest egg or an emergency fund, it’s a necessary feature of your finances if you expect to survive financially trying times.Experts say a robust safety net has anywhere between six and twelve months’ worth of wages sitting in it.They recommend such a large amount in case you face an extreme financial crisis, like a sudden loss of job or medical emergency.

Having no contingency plan

Living without a cushion often leads to living without a contingency plan. If you live paycheck to paycheck or you prioritize other expenses over your safety net, you won’t have the luxury of a cushion to protect you when emergencies happen. You need to correct this by living within your means. If you aren’t sure what that means, you should:

  • Check in with budget guides and money management apps to help you track expenses
  • Distinguish your needs and wants, then eliminate unnecessary spending on frivolous things
  • Consider your career and how you can boost your income with a new job, a raise, or a side hustle
  • Target debt if these bills cut into what you can save

Use these techniques to start building your savings from scratch. In the meantime, have a backup plan in case you encounter an emergency before you have a robust safety net. Online installment loans are perfect for urgent, short-term issues that happen while you’re creating your emergency fund — like when you have to replace a broken furnace or take your cat to the vet. These bills often require immediate repayment, and only direct lenders like MoneyKey offer fast installment loans online that work within that timeframe. In some cases, you can receive your cash loan in as little as one business day after you’re approved, making them ideal for unexpected bills you can’t delay.

Nobody’s perfect. Everyone slips up from time to time, so don’t be too hard on yourself when you inevitably get it wrong. Though you may not be able to stop yourself from flubbing, what’s important is how you go about fixing your mistakes. Remember these tips and refer back to them whenever you feel like you aren’t making the most out of your finances.

Filed Under: Lifestyle

COPYRIGHT [:copyright:] 2018 herorat

Primary Sidebar

About Us

Welcome to our family blog! We are the Newmans and our site HeroRat is all about family, home and pets. Myself (Maya) writes most of the articles, but sometimes the kids and hubby help too. We have 3 adorable dogs and 3 adorable kids! We do a lot together as a family, so it's pretty busy in our house on a regular basis.

Follow Us Online

  • Facebook
  • Instagram
  • Tumblr

GET UPDATES!

Recent Post

  • GPS Fleet Tracking for SMEs: Important Things to Consider
  • Pets’ Well-Being And More
  • How to Celebrate the New Year in Style: Some Great Ideas for a New Year’s Celebration
  • 3 Tech Devices For Sleep
  • The Best Contact Lenses for Australia

Follow Us On Facebook

HeroRat

Footer

About US

Welcome to our family blog! We are the Newmans and our site HeroRat is all about family, home and pets. Myself (Maya) writes most of the articles, but sometimes the kids and hubby help too. We have 3 adorable dogs and 3 adorable kids! We do a lot together as a family, so it's pretty busy in our house on a regular basis. Read More…

Maya: View My Blog Posts

Recent Post

  • GPS Fleet Tracking for SMEs: Important Things to Consider
  • Pets’ Well-Being And More
  • How to Celebrate the New Year in Style: Some Great Ideas for a New Year’s Celebration
  • 3 Tech Devices For Sleep
  • The Best Contact Lenses for Australia

Follow Us On Facebook

HeroRat

Copyright © 2023 · Magazine Pro on Genesis Framework · WordPress · Log in