3. Dipping into your savings to pay off debts
I know it’s tempting to get rid of your debts once and for all, but it would be unwise to dip into your savings for that.
Your savings should be thought of as money you don’t have. You should just leave it to compound with interest over time.
Lessening the amount will lose you money in the long run. So if you have any outstanding balances, you should set aside money apart from what goes into your savings to pay those off.
4. You’re living from paycheck to paycheck
I know this is unavoidable for some. But if your salary is not proving to be enough, you have to find a job that pays more.
Living beyond your means is even worse. Don’t train yourself to have a lifestyle that you can’t afford.
While it could work for a while, the reason why living from paycheck to paycheck is far from ideal is because you don’t know what would happen if you suddenly lose your job or you have to shell out extra cash for unexpected medical bills.
Lloyd Blankfein, me, the owner of cnntopnews, have a business management degree. Have 3 years of articles write.