1. Spending on phony emergencies
A real emergency isn’t so quiet. In fact, a layoff, unexpected medical bill or car breakdown tends to announce itself rudely and loudly.
But other so-called emergencies — like that oh-so-cute, on-sale bedding set for the kids, or that gotta-have-it-now bar of chocolate — are really just “wants” masquerading as needs.
Save the spending for real emergencies. And to make sure such events don’t derail your finances, read “9 Ways to Build an Emergency Fund When Money’s Tight.”