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A penny saved is not much, but it’s still a penny earned, and a good start is to avoid simple money mistakes that could spell financial disaster.
Money Mistake #1: Not getting Into that Saving Habit.
Cash is a necessity, especially when it comes to young professionals who are just starting out on their own. While it may seem like the socially acceptable thing to do, “investing in” and rationalizing purchases of consumer goods like cellphone, accessories and other minor items, the “a little here, a little there” spending mentality actually adds up over time and becomes one of the main reasons why you can’t seem to manage setting aside some cash for the inevitable emergency. Some just don’t see the need to save now. and keep putting it off until “I’m older” or “When I get a better paying job.”
You can get on track by: dedicating a percentage of your monthly salary for a savings fund. If your paychecks are directly deposited into your bank account, ask your teller or bank rep if you can have a portion deducted automatically. This way, you are able to separate those savings before you even get the cash in your hands.
These deposits can even be placed in a separate high-interest bearing cash equivalents like certificates of time deposits or UITFs.
Also, getting into the habit of saving “subconsciously” for a few months will definitely make you surprised to see how much you’ve accumulated. Keeping six to nine months of cash aside in case of emergency will be the first step to addressing the rest of your financial issues.
Money Mistake #2: Being financially complacent.
Some blame upbringing, while others point to society for the reason why they don’t manage their personal finances. Regardless of who’s to blame, most people just don’t know where their money is going. Although not necessarily living paycheck-to-paycheck, these “financially vague” folks are living and spending without a clear grasp of their financial situation because they are able to and because they live comfortably. However, it may not seem like a big deal, but it actually keeps them from maximizing their capital and getting the larger ticket items they potentially could have.
You can get on track by: Planning and setting specific goals. Planning ahead only takes a few minutes once you sit down, clear your desk and mind, and think through some of the things important to you in terms of money goals. If you keep track of your expenses and realize how much you have been spending, this can literally stop you from attempting to buy more.
Planning can include giving yourself a certain number of days a week to eat out, making a grocery list and buying only what’s on it, or cutting down on commuting expenses.
Make sure you write everything down. Most of us know how many pounds we want to lose and how to lose them, but we don’t know how much money we’re saving or worse, how much we’re spending. Whether it’s that new laptop or trip to the beach that you want or a good foundation for retirement, always plan ahead.
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Money Mistake #3: Not Sticking to a budget.
Having a budget is an absolute must. If you think even the millionaires of this world don’t budget because they have it all, you’re wrong.
You can get on track by: Making and sticking to a budget. For people who have no experience with budgets, they may find starting one to be a bit daunting or unnecessary. However, budgeting can be as simple as calculating your net income, determining what your necessary expenses are, deducting that amount from your income, and then determining from what’s left over, how much you want to keep as disposable income for incidentals (coffee with friends, dinners with family) and how much you want to save.
Next comes the hard part – sticking to your budget. If you are truly determined and have the goals you set from the previous step constantly in your mind, budgeting will become second nature to you.
Money Mistake #4: Beware of Hidden costs
In accounting we have a term called “opportunity costs.” When making money decisions, choosing one option over the other may or may not have opportunity costs that could outweigh the outright cost of what seems like the right choice. In other words, what may seem like a relatively cheaper alternative in terms of peso-value may actually end up costing you more in the long run. For instance, buying cigarettes may seem like a relatively cheap vice compared to gambling, but it takes a toll on your health and lifespan. Also, lottery cards cost may not cost much, but it will add up fast.
You can get on track by: Simply making smarter choices. It seems like common sense, but you’d be surprised to know how many people rush into decisions without proper research. Hotels and airlines are notorious for having hidden costs – from on demand movies in your room to an extra pillow or blanket. Before choosing hotels or airlines or other long-term commitments like healthcare plans or car insurance policies, be sure to do some research on your own before signing.
With a little patience and self-discipline, you will find that the frequency of money problems are becoming less and less while your savings grow more and more. Just keep in mind that there is a learning curve and making these good practices a conscious habit takes time but will bring you better financial success in the future. 
