These are actions you should NOT take when planning your finances

We are already close to another turn of the year and this is the moment when most people start making their plans for the following year. Furthermore, many take advantage of the impetus of something new to seek to organize their finance. However, we should pay attention to common mistakes when doing financial planning that get in the way of many people.

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What not to do when planning finances

Certainly deciding whether to plan financially is the first and most important step when it comes to balancing accounts. However, we cannot forget that it is important to make a plan that is coherent and that actually helps us to organize our resources. Therefore, it will be essential to avoid the errors that we mention below.

Plan without considering inflation

The things you intend to buy next year won't be at the same price as they are this year. This is a reflection of inflation: the common rise in product prices over time. However, many forget this basic step in financial planning and only realize it when there is money missing in the future.

Not setting a goal

What is your main goal in trying to save money or have more money left over? To answer this question, you can say that it's just to get out of the financial “tight”. However, it is necessary to define the goals to reach this objective, in order to create an efficient strategy to achieve what is most important.

Not creating emergency funds

We cannot predict the future in any way. In fact, the only thing we can actually predict is that we will always have unforeseen events in the future. However, these unforeseen events usually interrupt the flow of financial planning, being one of the most common mistakes. So when saving money for anything, also consider emergencies.

Being in default with debts

Unfortunately, more and more people are finding themselves with credit card debt. These debts are very harmful, as they prevent us from having access to buying the installment on the market. Therefore, the most important thing is to try to pay all debts in the shortest possible time and avoid getting on the restriction lists.

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