How to Recover from Financial Mistakes
As new students start to enter college they will make mistakes. But forgetting to study for the mid-terms is small compared to the horror stories of people that have plummeted into credit card debt during college. These mistakes, if not dealt with properly, can cost thousands. Dealing with mistakes and setbacks is an important part to mastering your personal finances.
The best way to deal with financial setbacks is by being prepared and educating yourself about money. The best defense is a good offense after all. Unexpected medical bills and car repairs are usually the main culprits when it comes to that unexpected slide into debt. An emergency fund can be a lifesaver when those unexpected bills pop up. Make sure to put a little aside every month into a separate savings account. Make your money work for you by opening a high-yield savings account instead of a regular one. Also educate yourself on the ins-and-outs of your loans and personal finance. By reading blogs, magazines and other resources you can get some pretty good ideas on everything from easy ways to save money while in college to tips and tricks to save gas.
Being prepared and reading up on finance will only only get you so far. You’re only human and mistakes will still be made. Don’t worry, keep calm and think about your options. Bounce a check by accident? Sorry, but that’s something you can’t fix. But don’t get depressed and learn from your mistakes. Remember to always keep track of your bank accounts. If your bank is larger its likely they have online account access. Sign up (its usually free) to keep track of your accounts and if you like the old-school approach, balance your checkbook.
If you accidently went overboard on groceries for the month, take out the difference from other parts of your budget or look at other options. Make adjustments and stay flexible. And try not to take from your emergency account if you can help it. It only works of the circumstance is an actual emergency.
Maybe the worst way to make a mistake is with credit cards. Never put any unplanned purchase on your card and remember to always pay it off every month. If you follow these two simple tips you should never have any trouble with unexpected or high credit cards again.
I recently bought a camera for a trip but returned it to the store after a few weeks because my credit card bill was higher than expected for the month. If you make a mistake, first try to reverse it. Usually simple mistakes can just be returned. But don’t make the secondary mistake of procrastination. Most stores have only a 30 day money back return policy. A select few have 90 days but don’t take the chance. As soon as you know you made the mistake of buying something, return it right away. It’ll be one less thing you have to remember and give you peace of mind that the mistake is corrected.
To get more tips on recovering from financial mistakes, read the I Will Teach You to be Rich article Don’t Panic! Recovering from Financial Mistakes and Setbacks.
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