The Top Money Mistakes

Managing your money can be difficult. You may want to save money, but an unexpected problem occurs that you have to resolve, thus meaning you're unable to put extra funds away.

If you have taken out a loan or have several on the go, it can be tricky to keep up with what's going out and when. That's why it's important to have direct debits set up with your bank to ensure everything goes out at the right time.

Budgeting is a great way to keep on top of your monthly payments. Planning and working out your expenses before you've been paid, should help keep you on track from overspending.

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In this day and age, it's simple to keep on top of your credit score. Knowing this and keeping an eye on it every month is a good way to ensure that you're on track.

When buying something, it's worth comparing prices before going ahead with a purchase. When buying a car, for example, if you know which make and model you would like, view prices being charged by several dealers.

Forgetting to save

Saving is a great way to keep money aside for a rainy day - if something goes wrong unexpectedly - but also if you're planning a holiday, a wedding, or want to buy a new car.

No matter how much you can put away per month helps, and even a small amount of your monthly salary could make a big difference over several months.

If you're able to save money each month, the best thing to do would be to put money aside as soon as you're paid, rather than anything leftover at the end, as you'll be more likely to spend any money sat in your main account than savings.

Not only could you put a chunk of your salary away per month, but you could also cut out extras that you don't need. For example, if you grab a coffee on the way to work every day, maybe you could cut that out, and the money you would have spent could be put into savings.

Missing payments

When you start missing credit payments, you're already on a slippery slope that could not only affect you now but in years to come, as missed payments show on your credit history for six years.

They also impact your credit score and could prevent you from being approved for a future loan. You may also incur late payment fees from your lender, which is additional money going out of your bank account that you could do without.

To ensure that you make payments on time, you should set up direct debits so that the payments go out at the same time every month. Alternatively, you could make sure all your bills go out on the same day to help you remember when things need to be paid.

Not keeping a budget

If you're someone who doesn't like to be restricted by money, you may be against keeping a budget to track all your monthly outgoings and updating as and when you spend money.

You may also be the type of person who dreads looking at their account because you're unsure what you spent and how much money is going to be left in there for you.

However, keeping a budget is great to keep you on track each month, and stop you from overspending on things you may not necessarily need.

You are then able to prioritise what is most important - rent/mortgage, energy bills, car finance, food shopping, etc. It can help you get a better understanding of what extras you can afford that month.

Not keeping tabs on your credit score

It's easy to keep an eye on your credit score these days due to the number of online companies that do them. While it's easy to forget - or ignore - your score, keeping on top of it should be as important to you as keeping on top of your budget.

Many factors make up a credit score, and if you check yours monthly, you may be able to identify what caused your credit score to go up or down.

You can also use credit platforms to ensure your details are correct and up to date, including your address, employer, income and more. For example, being on the electoral roll is a simple way to keep your score healthy.

It can also be a good indicator of what credit cards and loans are right for you, helping you save money on getting into loans that aren't suitable for you or your budget.

Not shopping around

Whether it's when buying a car, shopping for groceries or getting the latest iPhone contract, shopping around will help you save a considerable amount of money.

It can be easy to get into a habit of going with what you know. For example, if you've been with the same car dealership for a length of time, you may automatically go back to them when you want to buy a new car without considering others.

The internet makes shopping around so much simpler, and in just a few minutes, you can compare the price of a three-year-old Ford Puma between several dealers in and around your area.

By doing your research, you could reduce your monthly outgoings, thus giving you extra funds to put away into savings each month and more disposable income for you to play with.