Learning from Past Mistakes

Everybody makes mistakes and the important thing is that we always learn from them. Admitting that you’ve made a mistake is one thing but it’s essential that you do not fall into the trap of trying to justify your mistake. Mistakes need to be embraced and never justified or even rationalised. Unless you take accountability of your mistakes then you will never move forward and never learn the necessary lessons.

Many people make countless mistakes when it comes to money management and this more than understandable in a tough economic climate where 21st century living is so expensive with ever mounting costs, however, there’s a way to cut bad spending habits.

Not creating a plan or budget with your money and buying on impulse is one bad habit you need to snap out of. You must prioritise your spending based on what is important to you and once you have determined your goals, whether this is getting out of debt, renovating your house, buying a new car, going on holiday etc. Having a clear goal will help you to stop spending cash on pointless things such as your morning Starbucks trip or dinnertime Nando’s run.

If you are looking to consolidate debt such of that from a credit card then a personal loan can help you. You are able to borrow enough to pay off any outstanding bills or credit balances. You will reduce your bill paying exploits and can even save on interest and finance charges should you choose a personal loan with a lower rate than finance charges and fees on your existing debts, check out this SoFi review for an example. It’s all about being sensible and making wise choices.

Not researching before you shop is another big mistake and you should always do your homework, particularly when you’re committing to a big cost such as a TV, washing machine, microwave etc. Compare prices and select a quality model once you have the most information, this will also help to keep costs down in future as if you buy the quality model, there’s less chance of it packing in so soon after purchase.

You also must realize your spending triggers if you wish to snap out of bed habits and save money. Everyone has those places, people or websites that make us want to spend more than we can afford. Whether it’s the smell of a cake shop, your favorite website emailing you with a discount code or your friend telling you that those shoes would look great with that bag, learn to say no. Try walking a different route so you don’t pass the shop and unsubscribe to the website’s emails so you aren’t tempted and try something other than shopping with your ever so persuasive friend.

When you are bored, try to snap out of the habit of shopping online. A study once found that over a quarter of people who use their smartphone whilst waiting do so to shop. Whether this is in the car park on the school run, in the doctor’s, out at dinner, for the train, stop. Put your phone away, play a game, ring a friend, just do not online shop for things you do not need.

1 thought on “Learning from Past Mistakes

  1. This is definitely the number one piece of advice of all time. Learning from your mistakes is a classic that will never die. Despite that, failing to figure out your finances earlier could set you back for years which isn’t so great. This is why I stress personal finance or financial literacy classes at early stages of education! Could save some trouble if it’s done right.

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