Frich Reveals: Tough money lessons
This week we’re covering all your worst money mistakes because it really does seem like each and every one of you is currently living your best Euro-summer. And for those of us who stayed at home, we’re craving something that could help us feel a bit better for prioritizing our savings over seaside Spritzes.
So, we’ve partnered up with Fizz, our favorite credit-building tool, to reflect on these money mistakes (that btw all of us have made at least once before) & share the best ways to financially recover.
<div class="frich-tip">The first of its kind, Fizz offers a debit card that helps you build credit without the pitfalls of traditional credit cards. Fizz does not charge interest or fees for late or returned payments. Our only fee is our Membership fee, which costs less than a cup of coffee every month. Plus, you can get 10% off with the code FRICH!</div>
So let's get into the questions!
Have you ever maxed out your credit card?
Your credit limit isn't an invitation to spend the whole amount. To keep your credit score undamaged, you should generally aim to not spend more than 30% of your credit limit. If you need to make a larger purchase, definitely use your credit card to get the points & build credit history! But afterwards make sure to pay it off immediately to bring your credit utilization rate back to below 30%.
With that being said though, we know it's not an ideal world, and sometimes oopsies happen. But how often do they usually happen to the people around you? Here's what they said. 45% have never maxed out their credit card (that's amazing!), the rest were pretty split between still maxing out their credit card & maxing out their credit card only once or twice a long time ago.
Which financial habit took you the longest to develop?
Learning good financial habits isn't easy! (That's why Frich exists 😉) And hey - the truth is, most of us struggle with money. There's nothing to be embarrassed about. It's kind of like your workout routine - it takes a while to get into it & tbh it could always be better.
But we're all here to learn together! So here's a breakdown of what others admitted to be the hardest money habit to develop:
31% building up a good savings buffer
30% Intentionally budgeting my income
21% Consistently investing
18% Saying no to impulse buys and plans I can't afford
So if you're struggling with any of these - this is your sign that you can learn & you're not the only one that struggles with this 🫂
What’s your worst money habit?
On that note... Here's a rundown on everyone's worst money habits (guess ours 😜)
26% I keep forgetting to pay my bills
21% Impulse purchases
20% I don't save up for things in advance
17% I can't say no to plans
16% I haven't checked my credit score in months
* it's not being able to say no to plans...
