Money management: The three common mistakes you need to avoid
Effective money management begins with a clear analysis of your income and outgoings. It is crucial not to spend more than you earn, and experts recommend planning your monthly budget to achieve this.
A key piece of advice is to save 10% of your income as a financial cushion for unforeseen events or future investments. A lack of a savings plan, uncontrolled credit card use, and neglecting to track expenses are among the most common financial mistakes, warns financial expert Viorica Rumleanschi, a guest on Radio Moldova's morning show.
Financial expert Viorica Rumleanschi cautioned that people often take on loans without properly analyzing their income, simply to buy new items.
“You have to consider your regular monthly outgoings and the amount you must repay the lender,” she said. “This can lead to people being forced to mortgage their homes.”
To prevent financial instability, the expert advises continuously monitoring spending and setting clear priorities. According to specialists, financial management has a practical dimension that is reflected in people’s everyday experiences. The way each person chooses to use their resources highlights both their priorities and their personal habits.
A street survey has revealed that few people are able to save money. Some can only do so with family support.
One young woman, who supports the need for expense planning, said: “I live with my parents, so my living expenses aren’t high. I work and try to put money aside, and if it accumulates, I use it for something important. I believe a lot of saving is needed.”
Another woman admitted: “I pay for utilities and food, and clothing expenses are always dependent on my salary.”
When asked what income was needed for a decent standard of living in Moldova, most interviewees gave similar answers. Most believed more than 10,000 lei was needed for essential expenses alone, while a young man suggested 30,000 lei was required for a decent standard of living.
Financial management is an exercise in responsibility and consistency. Rigorous monthly budget planning, distinguishing between needs and wants, and consistent saving are fundamental to individual economic stability. While people's experiences show a diversity of strategies, the core principles remain universal: prudence, balance, and consistency.
Translation by Iurie Tataru
