Bang for your Buck: Avoiding money mistakes - Action News 5 - Memphis, Tennessee

Bang for your Buck: Avoiding money mistakes

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If you spend more money than you bring in every month and don't save a dime, it will catch up to you. If you spend more money than you bring in every month and don't save a dime, it will catch up to you.
MEMPHIS, TN -

(WMC-TV) – We all know what we should do with our money. Spend wisely, save some, not go over our monthly income, we've heard it all. But a new report says many people do some dumb things with their money.

So how can you avoid those money mistakes, so you can get long term savings.

A lot of people make silly money mistakes, such as buying a bigger house than they can really afford, spending too much on a car, or blowing a bonus at the slot machines.

The bill organizing website https://www.manilla.com the dumbest mistakes are those we could easily avoid.

Some these mistakes are:

  • Paying a bill late. This hits you with interest fees and penalties.
  • Bouncing a check. This could cause a domino effect of penalties.
  • Carrying a big balance on your credit card. Consumers could pay up to 20 percent in interest and contrary to popular belief it won't boost your credit score.

The dumbest of dumb money mistakes is not having an emergency fund. When the air conditioning or your car's transmission fails and you don't have a $1,000 emergency fund, you will need to put it on a credit card -- at a high interest rate -- or take out a cash advance at an even higher rate.

So, skip that fancy dinner and build up an emergency account first.

If you spend more money than you bring in every month and do not save a dime, it will catch up to you.

If you would like to get a hold of Andrew Douglas on go to his Facebook or Twitter page or email adouglas@wmctv.com.

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