Avoid simple financial mistakes
by FruGal on Mar 7,2011
Sometimes people can end up in a financial mess because of a series of small mistakes or bad decisions. One of the most common ways people can find themselves in difficulty is by accidently overdrawing their account and being hit with interest charges and fines. These can easily snowball into a sinificant amount of money in a short time.
Although you might think that with a little bit of common sense it’s hard to ‘accidently’ overdraw your account, anyone can forget something every once in a while. Especially if your direct debits and bill payments don’t all come out of your account at once, and are spread over the whole month. It can be easy to overspend a little in the month and then forget a payment late in the month that will send your account overdrawn, especially if you don’t keep a cushion of cash in your current account to protect you against things like this.
A simple way to avoid this is to schedule all your direct debits for within a few days of when your paycheque hits your account. That way, you pay all your bills, (and transfer savings) at the start of the month so that you don’t wind up with an unpleasant surprise at the end of the month should you forget one. Simples!
FruGal
Contributor
