Making money is one thing, keeping it is another. 

Often, there are common mistakes people make that make money management that much harder. Given the stakes involved, if you can understand or resonate with a couple, you can make strides to avoid the same mistakes. Well, here’s hoping! Read on to find out how you can help make your money work for you.

*Please note, we are not providing financial advice, these are just tips for informational purposes.

1. Ignoring Your Credit Score

Whether you apply for a payday loan or a short-term loan which are alternative to payday loans, your credit score matters. Anytime you look to borrow money, your credit score will be checked. And if you want to borrow money at lower interest rates, a good credit score can help give you options.

To make sure your credit file shows a true picture of how you manage your money, check it now and again. You can do this for free with the credit agencies that are used the most. Such as Experian, Equifax and TransUnion. They also give you tips on how you can improve your score too. And if there’s anything reported that’s not quite right, you can ask to get it put right.

2. Not Saving

Whether you’re saving for something big like a house or just a rainy day, savings are important. Even if it’s only so you’ve got some spare cash to fall back on when you need it most, savings can be a lifeline. 

You might say you don’t have enough money to save, but you’ll be surprised. Set up a standing order to transfer some money into a savings account the moment your pay goes in. That way it will be gone before you’ve had the time to use it. 

When and if the day comes that you need to use your savings, you’ll be so glad you’ve got them. 

3. Buying What You Don’t Need

Takeaways, shoes, clothes, many of us spend way more than we need to on things we could do without. 

The trick here is to avoid picking something up just because you fancy it. Instead, get excited about saving for something you really want or need instead. That way, the next time you get tempted to buy something for no real reason, you can ask yourself which you prefer.

4. Not Having a Pension

Paying into your pension may reduce your income now, but it’s a great way of saving for your future. Once you’ve paid into your pension, it grows over the years, and you can’t touch it. This stops you from dipping into it and using the money on something else. But once you retire, your pension will give you an extra income that you’ll need to live well.  

You could also look at your pension payments as if you’re giving yourself a pay rise. 

5. Spending Too Much on a Car

It’s easy to be tempted into choosing a nice-looking car over a more practical one. Driving around with the roof down in the summer could be a dream for some, but do you need it? 

When you’re managing your money, choosing something that gets you from A to B safely should be your priority. And size matters. If you don’t need a lot of space or a big boot, get a smaller car. The small, more reliable cars often cost less to run and insure. With the cost of fuel rising, there’s really no point in paying more than you have to for a car.

6. Buying a House

Most people like to own their own home but buying a house can be expensive business. It’s important to make sure you’re not having to take out loans to pay the deposit and other initial costs. If you are, make sure you’re earning enough to make all the repayments. 

You’ll be surprised how much it costs to furnish a new home too. It’s easy to be tempted by finance offers on furniture, but this just adds to your outgoings each month. Always look at how much you’re left with before you make a purchase. 

7. Not Being Honest About Your Expenditure

People often list all their outgoings and think they’re earning enough money. But then they’re surprised when they run out of money each month. The reality is in your bank statements. Have look over the last few months at where your money’s going. 

When you discover exactly what you spend your money on, you can find ways to change those spending habits. 

So, have a think about whether any of these money mistakes are true for you. By being smarter with how you manage your money, you’ll be better off for it.