Do You Make These Common Financial Mistakes?
- December 17, 2019
- By Sarah Solomon
As small business owners, it is important to be cognizant of your finances.Â Yet as knowledgeable as you are, everyone can make mistakes. REIL is going to take a look at some of the most common financial mistakes that often lead people to economic hardships.Â Steering clear of these mistakes could be the key to security and success. Itâ€™s important to avoid these mistakes with both your business and personal finances.
Â Unnecessary Spending
â€œMoney doesn’t grow on trees.â€Â A popular quote that business owners and people too often underestimate.Â It may not seem like a big deal when you pick up that cappuccino, have dinner out every night, or buy those concert tickets.Â However, these little items and costs add up. Did you know spending just $25 dollars per week on dining out can cost you $1,300 per year?Â This money could go to your mortgage, inventory payments, or most importantly your savings! If youâ€™re struggling financially, cut back. Learn that every dollar counts, and find the happy medium of spending on luxuries every once and awhile.Â Not all the time.Â
Do you know those payments that appear on your bank statement every month?Â Are they really worth it? Do you use your fancy gym membership enough? Do you utilize your cable television? When money is tight, or you solely want to save more,Â eliminate those payments that force you to pay but give you nothing in return. Use your money on things you really need or want.Â
Living off of Credit CardsÂ
Using credit cards has become normal.Â You swipe, and that gadget or gizmo is yours.Â However, consumers donâ€™t realize with the swipe of the card you are paying double-digit interest rates on gasoline, groceries, and other goods. Most importantly, you are spending money you donâ€™t have.Â Create credit limits and make sure to never spend more than you actually earn. At that point, your credit card is more detrimental to you and your business than beneficial.
Financial mistakes are easy to avoid.Â They are even easier to avoid if you are aware of them. If you’re looking for more financial advice or seeking funds, speak with one of our REIL representatives today. Â Business financing has never been easier than it is with REIL.Â