Mistakes are something we are all aware of from childhood. Depending on their type and repercussions they have the power to land us in deep trouble. But we have often observed that life does give us opportunities to learn from our mistakes. If we are quick learners we come out strong and move onto a better life.
Robert Pessemier in his book "The Top 5 Money Mistakes People Make" is trying to make us aware of our "money" mistakes. Unfortunately money is such a domain where mistakes get us into troubled waters very quickly. And often it takes years of toil to straighten them out.
We feel that one of the best ways to keep ourselves safe in the "money game" is to first know about the traps and then keep ourselves away from them in a disciplined manner. Smart people learn from the mistakes of others. So being prudent let us explore what Bob has written about some common money mistakes.
Lack of a plan to deal with life's emergencies. Often, most people are one or two paychecks away from a financial disaster.
No clarity about what is and is not important to us. Impulsive and unconscious purchases land us in deep trouble. They make us spend money on things that we cannot really afford or need.
Biting more than we can chew! Many people buy more wheels than they can afford (car loans or leases). What we often do not realize is the long term price that we have to pay. Bob says that there is a potential for savings (long term) around $575,278 in this domain.
Another deep trench is the fact that most people carry balances on their credit cards for which they have to pay interests. And the worst part is that once we have huge credit card balances we struggle to ever get it completely paid off. Money is drained out of our pockets for life. By paying them off quickly there can be potential savings worth $348,744!
Paying too much for our home loans. 85% of home loans have inflated interest rates. Here there is a creative room for savings to the tune of $369,417 in the long term.
That sums up to a total of $1,293,439 in savings!
Bob not only explains the mistakes but also suggests ways to fix them and hang onto our money. Also, he provides us with some handy workbooks. And the best part is that we can get a feel of the book through a FREE download of the complete book. This e-book can be viewed twice before it expires!