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These are major financial mistakes that many make at the start of the year

Controlling financial affairs is one of the basic tasks that must be succeeded with the beginning of the new year, but there are mistakes and omissions that many fall into at the beginning of January every year.

Hector Camizo says, in a report published by Business Insider in its Spanish version, that when a new year arrives, people feel the desire to renew and develop different financial strategies, in order to overcome their financial problems and improve their situation.

The author warns that there are some fatal errors that may make the new start in the current month doomed to failure, which causes complications that may continue throughout the rest of the year.

Therefore, it is very important to identify these mistakes related to home economics, so that you get the standard of living that you desire, and do not overstock your savings and your future projects. And here it comes to healthy habits in the disposition of money, which are learned and acquired on a permanent basis.

The writer adds in this context that saving money is always the most prominent goal set by many when entering a new year, but at the same time it is the first test that abandonment or failure occurs after a few weeks. What are the reasons that lead to this financial failure?

Hobby costs

The writer says that everyone has a hobby that he prefers to spend his time in, and he has been attached to it and used to it for years, but limits must be set for this hobby at the beginning of the year, especially since the cost may witness an increase in the next stage.

Clinging to reading or music, for example, does not mean buying all the books and albums that you want. The same applies to sports and electronic games. Therefore, you must avoid spending too much money on these hobbies so as not to lead to an imbalance in financial budgets.

Some do not know how to take advantage of the sales period and buy things they do not need (Shutterstock)

Drowning in debt

Another mistake many make, the report says, is the lack of careful monitoring of financial accounts. The biggest mistake that may occur is drowning in a sea of ​​debt, as many credit card purchases are made during Christmas, without paying attention to the balance.

Therefore, the author advises to avoid burdening the credit card with excessive or unnecessary purchases and expenses, because this will mean having to pay off debts later, while paying a lot of fees and interest.

It is advisable to plan well the budget, in order to avoid falling into trouble by the end of January, to follow up on bank accounts continuously, and to evaluate the price of the goods in comparison with your balance before making the purchase decision.

Cuts trap

A sale can be a good opportunity, but it leaves a lot of inconvenience. In general, people do not know how to benefit from the period of sales, as they buy things they do not really need, and often they do so with money they have not earned yet.

The period of offers and discounts can be an opportunity to achieve financial benefit and buy your needs at the cheapest prices, but this must be planned in advance and set the list of needs strictly, and not to be led by the attractive offers and to exceed the allowable spending ceiling.

You should try to profit from your savings by investing in stocks or deposits (Shutterstock).

Bad decisions

You should try to make a profit from your savings, as money should not remain stagnant, and this is one of the mistakes that some people make at the beginning of the year.

The writer is advised to search for the appropriate investment to make a profit, and those who are not good at making these decisions should seek advice from specialists, or obtain training in financial management.

There are many options represented in investment funds and deposits that offer different degrees of profit and risk, in addition to entering the stock exchange or buying shares in a small company.

Small may become big

The writer points out that drinking coffee every day may seem easy, but when you multiply the price of coffee by 23 days and 12 months of the year, the amount will become huge. Therefore, the small sums when combined, it is a large sum.

Therefore, the author stresses that the first month of the year is the best time to sit at the table and find a way to manage these small expenses and take action on them, such as reducing transportation expenses, getting rid of some household machines that consume electricity a lot, and looking for cheaper insurance contracts.




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