Financial Mistakes
The first million is made quickly. Keeping them is the art. At least, that's what financial experts say. On the other hand, we don't reach for the stars straight away, but look into our wallets: Tips for the correct handling of money - because the next taxes are coming soon, friends!

He wants to save or invest money and has his finances under control simply has to spend less than he earns. No matter if woman or man, young or old. That sounds simple and logical; it works in everyday life, especially as a young person, but unfortunately, not always.

The new vase was too tempting, the short trip to the sea had to be easy, and the money for the three glasses of wine in the bar seemed well invested. After all, with investments of this kind, you know where the real wage has gone. But even those who pull themselves out financially are not always immune to red numbers on their account. Why is that? Elementary: Small, hidden mistakes. We'll show you which ones they are.

Invest, invest and save money correctly? Then don't make any of these 10 financial mistakes.

Underestimate taxes

This is where the most common financial mistakes happen because, while it's the expense we least want to see, it is also the least we can avoid. Taxes affect everyone. And the fatal thing about it: Especially young professionals are often surprised at how high their tax burden is. If you want to be on the safe side, you save 20 percent of your monthly wages for any taxes. If the actual tax burden is lower later, it is gratifying.

Do not create reserves.

Unexpected car repairs, high costs for a move or insurance bills can quickly tear our finances into the red. We can only avoid this with a simple tip: Put a specific part (ideally 20 percent) of your income back every month until your account has a cost reserve of three months' income. Then nothing will throw you off course so quickly. Or you can also set up a separate savings account into which you deposit a certain amount of money every month.  Moreover, you can think about passive income and get tips from financial advisors like Sleepy Money. So you run no risk of spending the money elsewhere.

Forgot credit card bills

Such a credit card is a great thing. When shopping, you just hold out the little card, and you're done. The wallet is as complete as before, and the account is not strained either - at least not initially. Because we are so deceptively safe, the credit card statement is soon waiting in the mailbox. The delayed billing does not make it easy to allocate and invest our money correctly. A tip: It's best to use your credit card as rarely as possible to avoid this financial mistake.

Buy instead of share.

Sharing is caring: this is the motto of the hour in various areas of life. Sharing is not only social but, above all, an economically valuable act. Regarding mobility, sharing offers makes a lot of sense - and our finances are a pleasure. Most large cities have long offered car-sharing options. In some regions, scooters can also be rented. But even on vacation, sharing systems (e.g. Airbnb) offer cheap and uncomplicated alternatives to the classic (and expensive) hotel.

Don't think about retirement.

To get some of your money later in life, you must make provisions at a young age. Sounds stuffy. But it is the truth, dear people! How about, for example, investing in a condominium? So you basically pay the rent in your own pocket. Or maybe you are interested in trading stocks on the stock exchange? Sounds complicated? Do not worry; Shares and all other investments are not rocket science.

You just have to take the time to look at it and find the right concept for you and your finances. Banks and individual coaches offer financial advice to provide the best information about financial planning, asset accumulation and investments. Because investing money is already worthwhile at a young age, even without millions in the account!

Paying too much rent

Yes, it's true: today's rental rates are hell. But they are the bitter reality. What can we do? Either we get upset about it and make the big mistake of paying way too much money for rent every month, or we protect our finances by trying to live cheaper.
How it works? Quite simply: Either by using a sharing concept here and moving into a good old flat with other loved ones. Or we don't look for an apartment in the city but a little further outside; here, the rental prices are usually still affordable, and we don't risk spending all of our wealth on an overpriced roof over our heads.

Nasty financial mistake: always wanting to have everything the same

We live in a consumer society. It's not a secret. Consumption is over-present and seductive, and it is admittedly fun. But do we really need all the acquisitions and spontaneous purchases? Does it really have to be the newest cell phone? And do we have to eat out all the time - or doesn't a classic slice of bread taste suitable for dinner?

We actually don't need half of all that consumer stuff; we know that. So let's reduce our expenses and consider what we want to invest. What is the best way to do this? With one tip: try to sleep on it for a night before each purchase. The following day you forgot many things that seemed essential yesterday anyway. Consumption is fleeting. However, investments or a large sum of money do not save!

Underestimate small costs

Small cattle also make crap. Our dear grandpa said that. And she was right. The paid app that we download out of boredom. The coffee-to-go at the bakery because we didn't feel like taking a coffee with us at home or the T-shirt from online shopping, which we don't like, but we missed the return period.

All of these small amounts may not weigh much in isolation. But overall, it looks different and is probably one of the nastiest financial mistakes. To save money and invest it properly, you must learn to avoid such unnecessary "small-scale mistakes".

Take out loans

The interest rates are cheap, the terms are convenient, and the temptation is great. Nevertheless, we must warn: credit is not a bad thing per se. But the risk is high that they will lead us into a financial and debt trap. In particular, the long-term nature of the financial burden is underestimated by many.

It is only even more dangerous when you have taken out a large number of loans and get into a so-called credit loop, So you lose track of the running costs. Therefore, in the end, we argue for grandmother's simple rule: Just don't spend more money than you earn. Then you are safe!