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No one likes losing money.
Here are five ways you might belosing your hard-earned cash without realizing it.
Dont let emotions cloud your understanding of your financial situation.
Staying aware and proactive can help get you back on the right track.
This peer pressure can actually lead to increased spending.
Being Financially Ignorant
Another reason to lose money is not havingenough financial knowledge.
Currently, only 35 U.S. states require high school students to take a finance class to graduate.
Even those lucky enough to have learned some personal finance in school can still havepoor financial health.
As of December 2024, Americas average personal savings rate was 3.8% of an individuals disposable income.
Cruze explained that thepersonal savings ratecan differ from person to person depending on their financial situation.
Whatever the final number is, its important to not spend everything you earn.
She said, Getting a $1,000 emergency fund and then becoming debt-free is key.
Once youve done this, it’s possible for you to begin investing money and earning a passive income.
An Empower survey found that 42% of Americans go shopping every month to treat themselves.
Cruze said, Our spending can be so out of control.
And we dont realize where our incomes going.
While this may sound tedious at first, budgeting apps can make this task much more achievable.
Amen Oyiboke-Osifocontributed to this article.
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