You are aware of financial sins that you’re making or maybe you’re not so in this video I’m gonna go over five different popular financial sins that a lot of people do and a lot of people get caught in a lot of people don’t even know that they’re doing so let’s go over them they’re not in any particular order but if you are doing any of these sins it is time to end them flip them around because they can really hurt your personal finances. The first sin that I see is no emergency fund you know so many people are living that paycheck-to-paycheck lifestyle and they can’t set aside any money or maybe they just don’t even think about it you know they think that nothing bad can happen and unfortunately bad things are inevitable and things will happen expenses will come up.
So it is so important to set money aside for those emergencies and just prepare your finances in such a way that they can deal with any big issue that may come up whether it be a health scare you know some extra expense that just comes up or maybe a car repair something happens in the house or something that needs to be repaired and you got that emergency fund for those expenses that you weren’t prepared for because if you don’t have money set aside and you got to go find money somewhere else then you might have to take out a loan and that that just it runs into a whole bunch of other issues so set money aside for the emergency fund.
The second financial sin that I see all the time is credit card debt now credit card debt is something that kind of creeps up on you because oftentimes it starts small a little $10 here a little $5 there that you don’t can’t quite pay off right away and it gets slowly it starts to grow more and more to the point where it’s big enough that it’s getting a whole bunch of money is added to it all the time because of that interest rate you know credit cards have a huge interest or interest rate on it and you know you do not want to get caught in that snowball of debt that just keeps getting bigger and bigger and bigger and bigger so definitely do not want to runs that you know if you find yourself running down that kind of credit card spending more you just got to cut up credit cards only use debit from there on out until everything is wiped clean.
The third financial sin that I see a lot is living above one’s pay grade and this is just an instance of maybe you’re not making that much money but they’re going out to eat all the time you know they’re always going out on the town they’re always visiting new places and therefore things like that and you know their Instagram photos look fantastic but as far as the budget behind it it’s not looking so great because they’re living above their pay grade you know they can’t afford to live the lifestyle that they’re living if you’re honest with yourself to know the lifestyle that you can live and sometimes that is a humbling thing but if you want to make more money there are different ways you can look in the hide side hustles or different things like that and if you want to make more money but just know what you can’t afford you know you don’t want to go into debt trying to live an extravagant lifestyle that that’s just that’s not a good thing to do.
you’re kind of just running around just spending money with really no objective or kind of goal with your finances that you can run into trouble so this one is all about planning and budgeting you really got to do it it can be simple it can be a quick thing that you do on the weekend or it could be a detailed budget if you like whatever you like just at least have some form of it the fits in that I see is they go into college debt with no plan this is the kind of thing where you know they have this degree and I meet a lot of people like this you know I am a college student I actually go to UCLA so go Bruins but this is an instance where I meet people and they’re going on a complete loan meaning you know they didn’t really get a scholarship and you know they’re just taking money out spending it on every dollar of tuition it’s just it’s rough because I kind of know how much they’re gonna make when they graduate you know I know what an entry-level position is and what’s gonna make for them and I just don’t see any way they can pay it off can they don’t really have a plan for it.\
If you’re going into debt and you have a plan you know you’re like all right this is how much I expect making this is how many years it’s gonna take to pay off then you’re good you know I don’t worry about those people what is people that go in with really no plan as far as the rule for college debt goes you know there’s really no perfect number of how much you should kind of take in I like to say that the amount of college debt that you should all in all take on is should be less than or at least equal to would be your cap the salary that you expect entry level for year one into the real full-time job so that should be the max you take and that should kind of your limiting factor now for me I kind of did college a little bit more of an unorthodox route you can actually see the video I made about how I saved forty thousand dollars with one decision in that video I talked about my decision and how I did college a little bit differently Hinton’s I was a community college before I transferred to university.
I now go to UCLA so that’s kind of a little bit of a spoiler video but I go into a little bit more detail there if you’re interested in anything like that I highly recommend watching that video you can learn a little bit about that process but ultimately that will wrap it up so those are five financial sins that I see all the time and often times people don’t even know that there are sins you know they may see it as a little mistake but they can be very detrimental to your finances in the long run that’s the crazy thing with finances a little mistake can cause a rippling effect throughout your finances and can cause a lot of issues later on so if you’re doing anything like these you know if you see yourself sitting like this I highly recommend you know just changing in some way or just trying to get out of it as soon as possible putting a plan in place hint plan plan plan putting a plan in place to kind of negate or keep this from happening and if you see any others you know there’s a bunch of financial sins out there.