Rebounding from Money Mistakes: 4 Scenarios
We’re all human and no one is perfect. Most of us have made errors when it comes to one of the most important areas in our lives – our finances.
New Era Debt Solutions provides solutions to four common money mistakes:
Forgetting to Pay Bills
Uh-oh…with everything you have going on, you forgot to pay an important monthly bill! Unfortunately, late or forgotten payments often result in late penalty fees. But if you’ve proven yourself to be a responsible person to your landlord, creditor, etc., a brief phone call might help your situation. If your creditor is understanding, there’s a good chance they’ll waive your penalty fee. For next time, set alerts on your phone or email to remind you when your next payments are due.
Overdrawing on Your Account
If you’re always paying with a credit or debit card, it’s hard to think of your money as a physical concept. Therefore, it’s much easier to spend more than you actually have if you don’t know what your limit is. Cushion your spending account with a little extra money so you can avoid overdrawing and getting nailed with an overdraft fee.
Being a Good Friend – at Your Expense
Always be cautious before lending money to a friend. Just because he/she is a longtime friend doesn’t mean there’s an automatic guarantee that he or she will pay you back in full. If you are willing to lend, only loan an amount you’re comfortable with and feel is reasonable to expect back from your friend.
If you’ve already done the deed and are trying to get repaid, your conversation with your friend can go something like this: “Hey [name of friend], this is a little awkward for me, but I just wanted to give you a friendly reminder about the money I lent you last month.” Discuss the terms of your loan/repayment plan you had both agreed on and offer to accept non-traditional forms of repayment, like dinner or childcare.
Living Paycheck to Paycheck
Living paycheck to paycheck isn’t so much of an error as it is a reality for many people. But this way of living can diminish your overall quality of life. Rather than enjoying each day, you may be wracked with anxiety as you strive not to overspend.
Think about where you can cut down in your spending. Do you pay too much for your phone bill, TV/music streaming services, housekeeping, health insurance, or gym membership? Calculate how much you can generate in savings by eliminating some of your everyday expenses.
Prevent Mistakes, Proactively
In general, there’s a few ways you can be wiser in the future. After all, it’s far better to be proactive in your planning than simply being reactive when trouble comes. If you want to be smarter about your finances, educate yourself. There’s a wealth of books, websites, and other resources that can give you the lowdown on revitalizing your financial life.
You’ll also do well to prepare for the worst before the worst actually happens. No one builds an emergency fund for no reason; this cushion money will keep you on track in the event of a bigger money mistake, a job loss, a major home repair, or major disaster.
Remember, don’t panic or fall into any get-rich-quick schemes if you make a poor money decision. And don’t think of your financial setbacks as irreparable sins. Every mistake is a lesson learned and everything you learn makes for a better, smarter you in the future.
New Era Debt Solutions has settled over a quarter of a billion dollars of debt since 1999 and wants you to be our next success story. If you need assistance in achieving financial freedom, contact one of our friendly counselors at New Era Debt Solutions to learn more about finding the debt relief option that best fits your needs and budget. Our counselors are with you every step of the way.