We read an amazing post yesterday, and just had to share it here on our blog. Shark Tank’s Kevin O’Leary, known as “Mr. Wonderful”, shared the 4 most common money mistakes that people make.
According to O’Leary, the most important question you need to answer about your life is “How much does it cost you to be alive?” If you can’t answer that question, you’ll be in serious financial trouble soon.
Common money mistake #1: Buying crap clothes you don’t intend to wear
Far too many people buy clothes they don’t end up wearing. Most people wear the same 20% of their clothes 80% of the time. Stop buying clothes just to buy clothes – instead, invest in high quality clothes and wear them out.
Common money mistake #2: Know your monthly cost of living
Most people don’t know their monthly nut – what it actually costs for a month of living. If you don’t know what it costs to live for 30 days, you’re really living on the edge. Make sure you keep track of everything you spend, and budget accordingly.
Common money mistake #3: Spending more than you make
If you don’t know what your monthly expenses are, and you’re not following any budget, you’ll likely find yourself in the position of spending more than you make. The solution is simple – spend less and save more.
Common money mistake #4: Racking up credit card debt
O’Leary says that credit cards are evil things – and you should never have one unless you’re able to pay it off every month. You should pay off your cards and cut them up as soon as possible.
If you’d like to read the full article, head over here.