Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
adam@debtcliniccanada.ca (905) 970-0439
Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
(905) 970-0439 adam@debtcliniccanada.ca
Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
(905) 970-0439 adam@debtcliniccanada.ca
Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
(905) 970-0439 adam@debtcliniccanada.ca

January 2011 – Some money mistakes many people make.

By:Adam Aspilla
January 25, 2011

Financial independence could not be attained by hefty income alone, but it includes budgeting, savings and avoiding money mistakes many people make.  Some of these money mistakes:

First is failing to negotiate prices. Many people fail to realize that prices are flexible even department stores, their posted prices usually subject to negotiation to match competitors’ prices. Failure to negotiate would mean you are paying more than you should pay especially on big items like: a house, a car, or a boat.

Second is overspending on housing. It is impossible to get ahead financially unless you save a portion of your income. Ideally financial advisers recommend up to 30% of your family income for your housing expenses. If you spend more than 30% you may experience financial difficulty down the road much more if you are paying other debts, like: student loans, credit cards, babysitters or day care. The worst part of overspending on your housing is you may default on your mortgage payments and as a consequence, you may lose your house through power of sale.

Third is short term –budgeting.  Research shows that making a yearly budget instead of monthly budget works much better than a monthly budget. Why? Because monthly budget is usually not reflective of your income and expenses for the next eleven months. As a result, you may understate or overstate your income and expenses.
Fourth is taking on too much, or too little debt. Debt can enable you to pay on things you need like: going to school to pay your tuition fees to acquire skills and knowledge that would enable you to find a good paying job in the future; pay your rent during difficult time; use as a capital for a small business which has a very good potential to prosper. Not all debt is bad. Being so afraid of debt that you avoid it all together, could force you to miss out on opportunities, while taking on too much debt could lead you to financial ruin.
If you want to get ahead financially, in addition to your decent income, budgeting and savings, you should avoid the above mentioned money mistakes many people make.

You could not overcome them overnight, but you could do it slowly but surely with discipline and determination.

Adam Aspilla operates the Debt Clinic of Canada Inc. for more than 30 years.  He was a former financial planner, a former mortgage broker, and the author of the book, You Can Negotiate All Your Debts.  He also writes another column, “Biblical Perspectives” in this paper. For a free initial, expert, professional and confidential financial consultation on your financial issues like: Debt Consolidation, Credit Counseling, Consumer Proposal, Bankruptcy, and securing 1st and 2nd Mortgages, call 905-970-0439 or visit www.debtcliniccanada.ca

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