Extreme Financial Mistakes We Can Learn From

We don’t wish bad things for anyone.

 

But sadly, some people make huge financial and legal mistakes.

 

This article explains some of these extreme financial mistakes, then explains some best practices for better personal finance results.

No Awareness

Some problems happen gradually.

 

The problem of adding debt to our already strained finances can happen gradually over time. Lenders are partially to blame for this problem, because some debt marketing can be misleading. Phrases like “no payments for 18 months”, or “zero percent interest for 90 days” don’t tell the borrower the whole story.

 

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Before you know it, a consumer may have far more debt than he or she can reasonably pay off.

Dishonesty

When people are in financial trouble, they may be tempted to cut corners on tax reporting.

These taxpayers assume that, with everyone filing returns, a small reduction in reported earnings will be easy to get away with. The tax man can afford it anyway, can’t he?

In reality, though, sites like www.forbes.com prove that just isn’t the case. There are many ways to spot tax discrepancies, particularly with improved technology with banks, lenders, and investment firms. It’s much easier for the IRS to verify financial activity, and that’s how these consumers are caught.

If you’ve had a financial setback, this article can help.

Exaggeration

Many people exaggerate when filing insurance claims. Their thought is: “I paid into that policy, after all, so can it really be considered as theft?”

 

Exaggerations like these could leave you facing the cost of legal proceedings with the help of lawyers like those found at klgdefense.com. Even after that, losing your case is sure to mean again facing severe fines. All because you claimed for a television which was never stolen.

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The Workplace

Some workers are tempted to file for expenses that aren’t worked, or fail to clock out until an hour after the working day ends. We convince ourselves that we’re owed these little extras. The trouble is, your employer is already paying you a wage.

 

Steps to Get on Track

 

Here are some useful steps that every consumer can use to get on track financially:

 

Changing

“To improve is to change; to be perfect is to change often” – Winston Churchill

In 2017, Trinidad and Tobago (a country of slightly less than 1.4 million people) beat the US Men’s Soccer Team (325 million people) to eliminate the US from the next World Cup soccer tournament. Every few years, we Americans get all jacked up about a new coach, new team members- and we don’t seem to make much progress in Men’s soccer.

 

Sounds like someone needs to make some serious changes.

Commit to making changes in your personal finances.

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Take Action

 

Here are some easy improvements you can make:

 

 

• Create a budget, even if that budget is simply on notebook paper.
• Separate your expenses between fixed and variable, and take a hard look at your variable spending.
• Take steps to cut your variable expenses each month, and put the amount you save into a separate savings account.

You Got This

 

Making the shift into good financial habits takes planning and self-discipline, but it’s worth it.

 

You got this!

This post is for educational purposes only.

Ken Boyd

Less search time, more answers, better content.

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/

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