Trap #1 — Not saving enough money. Ask yourself what you would do if you lost your job or experienced another significant life change such as a major illness or the loss of a loved one. This should help give you the motivation you need to start new saving and spending habits.
Trap #2 — Living on the financial edge. Many people have to borrow money when a financial crisis occurs. Motivate yourself to spend less and save the difference for emergencies and future financial goals. When you have a goal, spending less doesn’t seem like deprivation but more like moving toward your goal—and that is very satisfying.
Trap #3 — Spending on impulse. Before you buy something, ask yourself if you really need the item or can get along with something that you already own or could borrow, rent, or buy used. For costlier items, do research and compare at least three vendors to make sure you’re getting the best value.
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