DIVINE
  • English
    • Français
  • Fashion
  • Beauty
  • Food
  • Family
  • Health
  • Travel
  • Living
  • Reviews
  • About Us
  • Advertise
  • Contact us
  • Instagram
  • Legal
Stay Connected
Facebook
Twitter
Instagram
Pinterest
DIVINE
  • English
  • French
DIVINE
  • Fashion
  • Beauty
  • Food
  • Travel
  • Living
  • Family
  • Health
  • Reviews
  • Living

4 Money Mistakes to Avoid

  • June 7, 2020
  • 3 minute read
  • Martha Li
Money Mistakes
Photo by Michelle Spollen on Unsplash
Total
1
Shares
0
0
1

When it comes to handling our personal finances, we’re all prone to making a few missteps along the way. But which ones can be most damaging in the long run? Here are four money mistakes to avoid at all costs.

1. Borrowing from your RRSP investments.

The current economic crisis has taken a toll on the personal finances of Canadians, and many people have found themselves in a bind with meeting their financial obligations for everything from phone and hydro bills to mortgage payments. Though it may be tempting to withdraw cash from your retirement nest egg, think long and hard about doing so. Tapping into long term retirement savings accounts to pay short term bills can be extremely costly due to penalties for early withdrawals. There are also tax implications and lost investment income. If you borrow or withdraw from your retirement savings, you’ll also lose out on the power of compound interest (where interest accumulated on your principal investment is continuously reinvested in order to generate more earnings), which over time could add up to thousands of dollars in lost income.

2. Creating a budget but not reviewing it.

If you’re good about tracking your expenses on a monthly basis, then definitely give yourself a pat on the back. Perhaps even more commendable than creating a budget is reviewing it from time to time. There’s no use in recording your debits and credits into a monthly spreadsheet if you’re not taking the time to review it. At the end of each month, be sure to look over your expenses a little more closely. This will allow you to see what areas in your life you may be overspending in and you can then make adjustments. By not evaluating your budget, you’re missing out on a key opportunity to identify ways in which you can save money.

3. Opening store credit for a one-time discount.

It’s a situation you’ve likely encountered—you’re at the department store, about to pay for your items, when the sales clerk asks if you’d like to apply for the store’s credit card to receive an immediate discount. It may be tempting to save that 10% or 15% off your purchase; however, be aware that every time you apply for a new credit card, you could be lowering your credit score. This in turn raises a red flag to lenders who view a person with too much available credit as someone with potential to rack up more debt. Having a lower credit score could, therefore, mean being charged a higher rate by the lender the next time you apply for a long term loan.

4. Making impulsive purchases.

A major reason that people accumulate a large amount of debt is because of impulsive spending. If you want to stay out of debt, it’s important to ensure that your shopping habits are under control. Try to avoid going shopping  when you’re bored as there is often a tendency to purchase things you don’t need or won’t ever use. You might also want to make a list of the essentials you need, and then make sure to not stray from it. While treating yourself from time to time is okay, be sure to use some discipline and distinguish your needs from your wants so that you have money for life’s necessities, as well as some savings squirreled away for the future and any possible emergencies.

Total
1
Shares
Share 0
Tweet 0
Pin it 1
You May Also Like
Supplement your income: Canadian $100 bills in two stacks
    • Living

5 Ways to Supplement Your Income

  • divine.ca
  • February 1, 2023
Small Dining Area: Dining area at Kitchen bar
    • Living

The Main Factors to be Considered in Designing a Small Dining Area

  • divine.ca
  • January 31, 2023
Pinterest Predicts: Woman on a tablet looking at Pinterest
    • Beauty
    • Fashion
    • Living

The Top Trends from Pinterest Predicts 2023

  • Jill Schneiderman
  • January 25, 2023
Managing New Year's Resolutions: Notepad with 2023
    • Living

The Ultimate Method For Managing New Year’s Resolutions

  • divine.ca
  • January 22, 2023
Pet Owner: Dog and Cat
    • Living

5 New Year’s Resolutions That Every Pet Owner Should Make

  • Jill Schneiderman
  • January 3, 2023
Related Topics
  • Budgets
  • financial advice
  • how to save money
  • impulsive purchases
  • money mistakes
  • money saving tips
  • money saving tricks
  • RRSP advice
  • saving money
Martha Li

Previous Article
Sister Dear
  • Reviews

DIVINE Reads: Sister Dear by Hannah Mary McKinnon

  • June 4, 2020
  • Jill Schneiderman
View Post
Next Article
Relationship During COVID-19
  • Living
  • Health

How to Look After Your Relationship During COVID-19

  • June 8, 2020
  • divine.ca
View Post

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search
Featured Posts
  • Best Holiday Cocktails: Festive Old Fashioned

    2 of the Best Holiday Cocktails

    • 2 min
    View Post
  • Casino Lovers: Las Vegas Sign

    Top Destinations For Casino Lovers

    • 3 min
    View Post
  • Parc Avenue: Bartender creating cocktails

    Michelle Levy Spotlights: Toronto’s Parc Ave

    • 1 min
    View Post
Get in on the Fun
Top Posts
  • Festive Season: Woman walking with holiday gifts 1
    Getting Ready for the Festive Season Ahead of Us
    • 3 min
  • Game Night: Monopoly Board With Car Game Piece 2
    How to Have an Exciting Game Night from the Comfort of Your Home
    • 2 min
  • Glam for New Year's Eve Party with 3 Women and a Man holding sparklers 3
    6 Fashion and Beauty Items to Make You Feel Glam for New Year’s Eve
    • 3 min
Stay Connected
Facebook
Twitter
Instagram
Pinterest
Featured Posts
  • Health and Beauty: Woman applying makeup

    7 Ways to Make a Second Income With Your Health and Beauty

    • 3 min
    View Post
  • Best Halloween Items: Woman in Witches Costume holding a wine goblet

    5 Best Halloween Items for Adults

    • 2 min
    View Post
  • Boukan: Outside of restaurant with the three partners

    DIVINE Dines at the Opening of Boukan

    • 2 min
    View Post
about
DIVINE Magazine

Canada's Online Women's Magazine

DIVINE Magazine is the bilingual online destination for Canadian women. Bringing you trending features that are relevant and interesting to Canadian women, DIVINE is the place to visit for useful, practical and entertaining content.
Subscribe
Partner Network
SWAGGER Magazine, North America’s
Online Men‘s Luxury Lifestyle Magazine.Ohlala.ca, Canada’s Destination for Everything You Need to Know About Dating & Sex.
about
Stay Connected

Follow along on Instagram @DIVINEdotca

Kick your feed up a notch with the hottest beauty, style trends, recipes and more! It's not too late, follow along today and you might just catch the behind-the-scenes of our next shoot or even a contest. You can thank us later. ;) #Divinistas
Follow Us
DIVINE
  • About
  • Advertise
  • Contact
  • Privacy
Making your life a little more DIVINE.

Copyright © 2022 Divine.ca · All Rights Reserved

Input your search keywords and press Enter.