No matter what a financial guru you are, these mistakes can happen to anyone. I even have to watch falling prey to a couple of them still.

1. Impulse Buying: We all have done it from the candy bar at the check out counter to even a car (yes that's why I drive a Fuchsia Challenger). The best way to keep this from happening is to make a list when you go shopping, then make yourself a promise to stick to the list.  Some of you may even need a shopping buddy (and I'm not talking about the kind that will tell you how cute you look in that sweater that's on sale). Take along a partner that will help you keep your shopping in check.  Still can't do it? Then stay out of the problem store and either shop somewhere else or enlist someone to do the shopping for you. If you are using the cash envelope system then just put enough cash in the envelope to cover the needed items and leave your debit cards & checkbook at home.
2. Not Doing Research: When you make big purchases, you should always research the product before you buy it. I'm not talking about walking around the showroom floor looking at the other items on display, but rather in depth research on the computer, books, magazines, friends, etc. Even though my Challenger was an impulse buy, I had actually been researching them for a couple of years.  It just happened that the dealer got a rare color in I had been dreaming of owning and before I knew it, I was driving it off of the lot.
3. Going into debt: When you have to go into debt to purchase an item (house excluded) then chances are you probably don't need the item.  If it's something you do need, then that's a perfect example of why you should have an emergency fund in place. We live in a society of "hurry up and have it". Most of people's money problems could be lessened if they would practice a little self control (me included).
4. Not Having A Plan: When you don't have a plan, a budget, you have no idea how much money you have, how much you need, or how much you've spent.  When you have a plan, then you know where you were, where you are, and where you need to be. A budget will tell you where you need to cut back or spend more. It will show you where your problems areas are and where you are doing good. If you don't already do a budget every month, you need to start.  Visit me over at Lifeway Personal Financial Coaching and I can show you how.
5. Cosigning On A Loan: Think about this for a minute.  If the bank doesn't think that this person is worthy of the loan on their own, it's because they don't think they will get their money. What makes you think they will pay if you cosign for them? Because it is your child? Your parents? If anything, that will make them even more likely to default and leave you holding the bag for the payments. By cosigning you are telling the lender when (not if) this person doesn't pay on the loan, you will pay off the loan for them. Do you really want another bill to pay?
6. Not Having an EF: If you don't have an emergency fund then you need to start one NOW!!  Ready, Set, Go!!!!  Almost all debt for middle class America could be eliminated with just a simple $1000-2000 emergency fund. This would cover most car repairs, most household repairs, medical emergencies, etc. I'm not talking about a total overhaul of the engine, a new roof, or a heart transplant.  I'm talking about every day stuff like, the fuel pump, water heater, or broken arm. Think about how many times you've laid plastic down to pay for these types of items and how long it took you to pay it off.  I've used my EF many times.  If I have to use it, I stop all debt repayment until it's built back up again and then restart debt reduction.  Doesn't have to be anything fancy.  Even hiding $1000 somewhere in your house will work......so long as you don't consider the pizza delivery an emergency!!

There ya go! Are you guilty of any of these? If so, just recognizing you need to work in that area is a major step. Think about what action steps are needed in order for you to correct the problems and then just start doing it. Don't expect to be perfect all the time because nobody is, but if you slip up pick yourself up and start at it again!



Brought to you by Lifeway Personal Financial Coaching

These are the 5 verses that have changed my financial life. Each one of them has had a strong impact on many decisions in my life. I hope you will let them do the same to you as well.

1. Philippians 4:19: And my God will meet all your needs according to his glorious riches in Christ Jesus.
God, is always faithful. That is why we should always be trusting Him as our supplier! It doesn’t matter if there is a financial crisis, if you get laid off, or your if your retirement looses 1/2 it’s value – God will still supply your needs just as He promised as long as you trust in Him.

2. Malachi 3:10: Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,” says the LORD Almighty, “and see if I will not throw open the floodgates of heaven and pour out so much blessing that you will not have room enough for it.”
It is a bold step of faith to start tithing. Some argue that tithing is not required in the New Testament. There is no escaping the truth that tithing opens the door for blessing that can not be opened without doing it. From my own personal tithing experience, I can attest that I am overwhelmingly convinced beyond any shadow of a doubt that tithing increases blessing. As Joyce Meyer says, "If they HAD to give 10% under Law in the old testament, what should be giving under Grace now??"

3. 1 Timothy 6:10: For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.
This verse is so often misquoted that it is almost laughable. Money is not evil. The love of it is. Having a million in your bank account doesn’t mean that you love it. Having $5 in your account doesn’t prove that you don’t. For example, Warren Buffett has billions in his accounts, and he is giving almost all of it away to benefit the lives of others.

4. Acts 20:35: In everything I did, I showed you that by this kind of hard work we must help the weak, remembering the words the Lord Jesus himself said: ‘It is more blessed to give than to receive.’
Giving sets us free, while hoarding entraps us (James 5:2). Giving changes the lives of others (John 3:16). Giving brings blessing back to us (Luke 6:38). Giving allows us to store up treasures in Heaven rather than here on the earth (Matthew 19:21). Giving really can be fun. We also need to be teaching our children at an early age, the joys of giving to others!

5. Proverbs 22:7: The rich rule over the poor, and the borrower is servant to the lender.
The freedom of being debt free has always been so exciting to me that I have been willing to give up tons of material stuff in exchange for it. Getting out of debt is not easy and often requires a fight, but the freedom that comes with it is so worth it!!