Earning what you consider to be ‘a decent wage’ does not necessarily mean you are financially secure. If you’re not conscious of your spending, assets, and capacity for growth, you risk falling into negative financial habits that will end up cost you.

Smart Spending

Here are five of the most common financial errors you should be actively avoiding.

1. The “Emergency” Credit Card

Getting an emergency credit card is not a right of passage in your adult life. In fact, it can actually be a recipe for disaster – credit cards can lull people into a false sense of security about their financial freedom only to realize they can’t afford to repay their credit card bills due to high interest. If you find yourself in an emergency situation, opt for fast online cash loans from not-for-profit lenders instead. They provide more flexible terms with no hidden, extra fees so you can stay in control.

2. Not Negotiating For Cheaper Utility Bills…

People shop around for cheaper rates for their petrol, their food or clothes but hardly as many people will do this before settling for their electricity and gas retailers – even though they pay for them every single day!

Exploring the competitors of your energy billers may save you hundreds if not, thousands of dollars at the end of the year. There are even free energy comparison tools online that do the hard work for you, no matter where you live in the country, so there’s really no excuse. You can also call your provider directly, quote a cheaper rate at a rival company and chances are you’ll qualify for a discount “for your loyalty.”

3.  …Or For Cheaper Telco Bills

Follow this same rule of negotiating in as many different areas of life as you can and you’ll be shocked to see how many costs you could have cut sooner without actually changing your lifestyle. Telecommunications is a competitive industry so be sure to check out what other mobile plans are available to suit your call, text and data preferences and your home or work internet and phone lines.

4. Living Above Your Means

From early adulthood when you’re completing your studies years to your early career, you will likely experience a significant jump in your income which may also lead to a rise in your spending habits. The common warning sign of going overboard is if you start to notice your balance becoming rather sparse before payday. Instead, set a proper budget that allows you to live within your means.

The 50/30/20 rule is an easy way to start budgeting. It allows for 50% of your income to cover your needs; living expenses, 30% is your wants i.e. shopping and entertainment and 20% is to be set aside for savings.

5. Not Diversifying Your Portfolio

You don’t want to put all your eggs in one basket. Investing in a diverse array of assets is the safest way to avoid risk and secure long-term growth when it comes to your finances. You can invest in assets like stocks, residential or commercial property, cryptocurrency, art, gold and other precious metals or again, a combination meaning you diversify even further!

Reading and Increasing your awareness is the perfect first step to making better financial decisions that will pay off in the long run. Now that you’re more aware of what you need to avoid, you can actively work stress-free towards meeting your financial goals so that you can achieve your personal goals and still have some savings leftover!