1. Don’t focus on your finances The reason most people get into debt is because they don’t spend enough time focusing on their finances. You need to get a grasp of where you’re at financially, keep track of your income in relation to expenses and spending habits.

2. Failure to develop a good financial plan No one would imagine going on vacation without planning for it. Yet when finances are concerned, many people don’t plan. A good financial plan can be difference between comfortable living and struggling to get by.

3. Waiting too long to invest When making investments, time is of essence. Compound interest earns money over time; so don’t wait too long to save for retirement. The longer you wait to invest, smaller your return on investment.

4. Marrying wrong person Who you marry has a huge impact on your finances. Couples with different views on money, create stress in their marriage. Divorce apart from emotional pain and suffering causes financial heartache.

Equity on your home is essentially difference between value of your home and outstanding mortgage. Lot of finance companies today offer good deals on home equity loans, letting you borrow money based on available equity on your home.

This type of loans product basically works on idea that you use amount you own within your property as collateral against a loan. You put it up as a guarantee to your lender that you can repay any loans. This allows you to free up amount you already own within your property and use it as hard cash.

Most lenders will work out how much equity you have for you - but it's simple enough to do it yourself. All you need to do is to work out how much your property is currently worth and then subtract your mortgage from it. If you're not sure how much is currently outstanding on your mortgage, have a chat with your lender and they'll be able to help you out.

A home equity loan allows homeowners to access equity in their primary residence without having to sell property. Equity is difference between what a home is worth and what is owed against it. Traditionally, home equity loans were called second and third mortgages.

You might have heard about using these types of financing products to meet your financial goals. Most home equity loans are simply second mortgages, structured either as a lump sum loan similar to a first mortgage, or as a line of credit.