Lifestyle

7 common financial mistakes that are making you poor

Here are seven financial mistakes that can negatively impact your financial health and make you poorer over time

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Living Beyond Your Means

Spending more than you earn leads to accumulating debt, which can snowball with interest, making it difficult to escape a cycle of financial strain.

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Ignoring Financial Education

Not studying personal finance might lead to bad financial decisions. Long-term financial health requires understanding compound interest, diversification, and tax ramifications.

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Impulsive or Uninformed Investing

Poor research and investing decisions based on market hype might result in huge losses. Investment strategies must be well-planned.

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Not Having an Emergency Fund

Medical crises and auto repairs may need high-interest loans or credit cards, worsening financial problems.

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Neglecting Retirement Savings

Failure to contribute to retirement funds might leave you unprepared for retirement, requiring you to use Social Security or work longer than intended.

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Carrying High-Interest Debt

Credit card debt and payday loans often come with high interest rates. Paying only the min amount due each month can result in paying significantly more over time due to interest.

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Lack of Budgeting

A lack of a budget makes tracking expenditures difficult, leading to overspending and missed savings opportunities. Budget helps you manage finances and prioritise spending.

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