Money traps to avoid if you want to be rich!

Let's talk about some common money traps people find themselves so that you can avoid them and remain financial savvy!

1. Becoming subject to 'keeping up with the joneses' wanting to live above your means and purchasing things you cannot afford just because you want materialistic items perhaps to show off to other people. This can include signing up to an expensive car on finance when the monthly repayments, insurance, tax, petrol/gas etc is a big portion of your monthly income. Instead get a cheaper non flashy car that is not on finance ad begin saving for a nicer car in the future. If you feel the need to constantly impress others with materialistic items then maybe this is coming from a place of feeling unworthy.

2. Not being aware of long term financial plans and not planning - you don't need to have everything figured out but its a good idea to bare in mind where you want to be financially in 1 year, 5 years, 10 years and so on and note that the financial decisions you make now are likely to somewhat impact your future, especially the big decisions. Thinking you're too young and not planning for the future and retirement etc. Thinking about money in the long term also involves impulse buying and considering whether you actually need/want an item. Not planning for things going wrong (ie car breakdowns), weddings, children, holidays, anything really. Something else that kind of ties in with this one is investing money and saving money from early on. I know in America theres the 401K but you can still invest in stock markets or other stuff. Don't worry about how much everyone else in earning because quite often its about how much of your salary you save not how much your salary is. Being money smart is way better than earning loads and spending loads.

3. Phone monthly payments that are very expensive - getting sucked into having the newest phone every year or so. Also this leads onto another one which is just getting caught in the 0% upfront payment options. A lot of products and companies now offer no upfront payments but paying something off monthly... I think this is obviously fine if you can afford it but you need to be aware of any potential interest and also if you cant afford to buy something upfront can you really actually afford it?

4. Having a too expensive living option. I guess this one ties into the first point of living above your means but specifically with this one I mean wanting to move out so badly from your parents house or whoever and either picking the first place you see to rent that is super expensive and is 70% or more of your monthly income or getting a mortgage on a property you cannot really afford.

5. Opening lots of credit cards and getting into debt that you think 'ill just pay this off soon'. Getting a credit card can seem excited when you can finally open one but it can quickly snowball and get out of hand. I think if you want a credit card perhaps for the purpose of building a good credit rating then have the mentality of paying it off straight away.

6. Not looking for offers and happy hours where possible and not learning to cook. This leads to going out for 3 cocktails costing near on £10 each and ordering takeaway multiple times a week... it all adds up! Of course, socialise and go out but I think being aware that you can say no to having another round or opting to suggest having friends over and all pitching in to cook a home cooked meal to save some money every now and then.

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Thank you for reading,

Hayley