Let's talk about what is the common money mistakes of an employee and how important it is to know about it. Because, you know, there so many many employees that are working here in the Philippines, and the problem is, yes we are all earning but the salary is always not enough for them, they always complain that the salary they are earning is not enough. The truth is, income is not the problem, the problem is the attitude towards the income.
Here Is Are Common Money Mistake Of An Employee:
1.)SPENDING MORE THAN WHAT THEY EARN. They spend more than what they earn, income is not the problem, the problem is the person who is receiving the salary, they don't know how to manage their spending. The more you earn, the more you spend, that's the reason why you are having a shortage of your income. In other words, when you see that your income becomes higher, you add your expenses too.
2.)NOT KEEPING TRACK OF THEIR EXPENSES. We are so many expenses that we are not expecting to come and because of that, we don't care to track it and do a list to see how much money you spend on your unexpected expenses. We cannot monitor all of our expenses that is why at the end of the month or the end of the year, we are always asking ourselves, "where does my income go?"Better to list down the expenses even if it's not part of the basic expenses that we are spending, it still counts.
3.)BORROWING MONEY TO MAINTAIN THEIR LIFESTYLE. Since we are not monitoring our expenses, we are having what we call"overspend" that is the reason why we ended up borrowing money to sustain our lifestyle. There is nothing wrong to spend money on our lifestyle as long as you can afford to maintain it without borrowing. It so sad that we are borrowing money to maintain our lifestyle just to please other people that we do not like and hate.
4.)LIVING FROM PAYCHECK TO PAYCHECK. This is a big problem also, we have a different schedule of payroll, an example is the 15th and 30th of the month, you just received your salary for 15th of the month but you are looking for the salary of the 30th of the month because your salary for the 15th of the month will not be enough to sustain to wait for the salary of the next payroll. It is a very difficult situation, it may result to borrow or advance your salary and it will end up constantly for the rest of the year if you do not change your way of managing your money. You got to get out of this situation, find a way, or change how your way of managing the money. If you are an employee now, create what we call "emergency funds"it is your monthly expenses, create it to save for yourself, not for your wants like gadgets, and anything that is not necessary things, you will save for your emergency funds. Why emergency funds is important? because just in case something happens to your income, your income will decrease, you lost your job,etc.you have an emergency that can help you to survive for a while, you don't need to borrow, you will not be stressed.
5.)DEPENDING ON ONE SOURCE OF INCOME. If you only have one source of income, you are in danger of having difficulties in terms of money. Well, whether you like it or not, if you are an employee and notice, income is limited but expenses are unlimited, if ever who lost your job where do you get money to sustain your needs? That is why we have to be open-minded to look for another source of income, don't be contented with one source of income because we never know how long does it take to sustain your needs, your family needs. But if you want to have a sideline, make sure that it will not have a conflict of interest when the present job that doesn't give you the license to open something that has a conflict of interest. We need multiple sources of income.
We should save more instead of spending more. We should monitor our expenses, we should not borrow just to maintain our lifestyle, we should not live paycheck to paycheck and we should have multiple sources of income.