‘’Winging it’’– this is the exact opposite of planning and budgeting. Living a life with no clear cut financial plans or goal is the quickest way to go broke. Individuals who fall under this category often indulge in impulse shopping and in the end spend up all their money.
Excessive Use of Payment plans- If you want to win with money, you need to take unnecessary “payment plans” out of your vocabulary. Successful people don’t finance their couches, dining room tables or cars; they make solid investments. If you have to put it on a payment plan, you can’t afford it.
Taking Predatory loans– research has shown that people go broke by taking one too many loans. To repay these high-interest loans in a single payment, the average title loan borrower gives up 50% of the average gross monthly income. A lot of borrowers can’t afford that, so they get caught in a cycle of renewing these loans, which digs a deeper and deeper ditch.
No Savings Plan- A lot of people live on the brink of financial disaster, having little or no savings. So it only takes one unexpected expense, such as a major car repair or leaky roof, to push them over the edge. It is imperative to have a consistent savings plan.