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Are you guilty of these financial mistakes?

Even people who are great with managing their money have probably made a mistake or two along the way. But like all mistakes, the key is being able to acknowledge them and work out how to ensure you don’t make the same ones again. So, what are the most common ones and how can you avoid them?

Not saving enough was the biggest financial mistake found in a survey by specialist insurers Partnership, with 40% of people citing it as something they have fallen foul of. Interestingly, more 18-39 year olds felt this was the case (50%), than those aged over 40 (34%).

Putting too little into a pension (19%) and getting into debt (15%) were also common choices.

If these mistakes sound familiar, here are some ways to get yourself out of the top three.

Financial mistake fixers

1.Not saving enough

If you aren’t saving enough, but don’t know how to start to remedy it, don’t worry.

The best way to start making savings a habit is to set up a standing order from your current account into your chosen savings account. Do this on payday and it will be easier to make a habit of doing it.

If you find you don’t have enough money at the end of the month, you might be surprised at the places you can find a little extra. Take a look at your outgoings and consider how you could budget better. Using a free online tool like our Budget Planner will help you work out where your money leaks could be.

2. Not saving into a pension

If pensions are your biggest financial mistake, this is easy to change too. Although the State Pension gives you a foundation for your retirement, it is below what most people would like to retire on. So the best thing to do is to save into a pension yourself too.

Workplace pensions are a good place to start to look into this, and the good news is that with automatic enrolment it’s now easier than ever to save into a pension.

3. Getting into debt

Lastly, if debt is worrying you, there are lots of free, confidential places you can go for help. These places are run by trained debt advisors and they can help you prioritise your debts and find out the best ways to deal with your creditors.

If your financial mistake hasn’t been mentioned, our website offers a wealth of information on a range of topics. Take a look on our Money Advice Service website to find advice on yours. 

 

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