Money management is like many things in life. We learn through practice and experience rather than from a textbook, and most of us make our share of mistakes. Here are some common financial mistakes and suggestions on how to avoid them. It is not unusual for families not to know how much they spend for insurance, transportation, eating out, and other routine expenses.
People work hard to earn a living.
Effort should also be put into planning the use of money and savings. Simple arithmetic shows that we must spend less than we earn to accumulate savings. Once a year, itemize family expenses and analyze them. When financial priorities and goals are not established, too much money can be frittered away on inconsequential items that are not financial assets. Your standard of living is that which you can reasonably hope to achieve.