Piggy Bank
IN PHOTO: A piggy bank is pictured in this undated photo. Reuters/Jill Kitchener

You might wonder why there are times when you are always running short on cash despite your attempts to save and spend wisely. There might be a number of financial practices that you need to correct to become stable for good. Below are five money handling mistakes that you might be committing and need to fix immediately.

1. Hating math

A lot of people only have a general idea over their finances and are too lazy to actually calculate and find out the specific figures. Forbes reported that many people take out loans without actually computing how much they need to borrow. In effect, you may be paying interest for money you do not actually need. Getting the details down to the last cent will help you manage your finances better.

2. Not talking about money

Especially among couples, it is important to communicate and deal with your money issues openly. Avoid staying quiet about financial problems and instead, face the issue together. You can come up with a practical plan that involves both parties. This way, nobody gets surprised and can handle the situation with teamwork.

3. Handling the problem on your own

CNBC reported that people should get help even in the early stages of their financial troubles. Taking too long to seek expert advice will only result to added expenses. If you are married, seek consultation as a couple and not individually.

4. Not checking your credit report

Some people may ask for their credit score or report but not know what it means. The credit report will serve as a guide for potential lenders and credit companies to determine if you make good on your payments and above your finances. Have an expert teach you how to assess your credit scores.

5. Relying on your credit card too much

You might be relying on your credit card frequently if you run out of cash. Paying on credit is paying with money you do not have. Avoid spending with your credit card and make it a habit to pay in cash.

These common money management mistakes can be solved if you take time to observe your spending habits and modes of payment. Don't be afraid of numbers. By understanding how money works, you will be able to handle it better and, thus, steer you farther away from debt.

To contact the writer of this story, send an email to v.doctor@ibtimes.com.au