If your salary has been steadily increasing over the years but you still find yourself living pay check to pay check or even just keeping your head above water then you are probably making the same mistakes many people do. As you get further along in your career your salary should be increasing and so should your savings. There is a large portion of the population that makes a good living but still find themselves feeling poor. You can stop making poor decisions right away and use these tips to help you start keeping more of your salary.
Mistakes that Keep You Poor
The first mistake that many people do as soon as they get a raise is they find a new way to spend that new money. The surest way to keep getting poor even with a good salary is to spend it all away. When you get a raise just revisit your budget and keep your spending the same despite a bump up in income.
Putting off your future needs for your present wants will keep you in the poor house. Instead of impulse buying the trendy things that you want now, think about what your future self will actually need.
If you are always thinking that you will save later in life then you will find yourself poor when you get old. It is never too early to start saving and your future self will thank you for everyday that you saved.
If you are not keeping a budget then you are certainly making financial mistakes. Knowing how much you have coming in and going out is a basic financial practice that everyone should master.
The lack of budgeting is terrible but poor budgeting can be just as bad. Having a close eye on your budget will help you focus on what you can spend at all stages of your life.
If you are not sure of what you really want then you will never get it. You need to be clear about what your wants are and what your needs are and do not get them mixed up.
Ignoring your debts can be a financial disaster. Compounding interest rates on overdue bills will not only ruin your credit rating but will surely put you in the poor house. Make sure to pay off debts as soon as possible.
Upgrading your lifestyle constantly drains funds incredible fast. Being happy with what you have now and finding value in the electronics and gadgets you currently own will keep you from spending a small fortune every year when a new phone model comes out.
You work hard for your money and there is no reason you should feel poor if you have a good pay check coming in every month. So break those bad habits that are keeping you poor and start saving.