– Using credit wisely prevents a majority of common money mistakes.
– Financial stewardship is easier when you have a plan.
– In regards to investing, a little can go a long way.
Money management is about numbers. Not only should you spend responsibly, but you should also avoid these common money mistakes. Continue reading our foolproof guide below.
#1. Being scared of credit
Credit, in itself, is not a bad thing. While several financial gurus advocate a cash-only system, many find starting that type of lifestyle unrealistic. Instead, consider living in moderation and using credit as a tool. You won’t want to put every purchase onto a credit card. However, don’t deny the benefit of placing large ticket items after creating a sinking fund and then earning cash back.
#2. Making payments late
Using credit wisely includes paying bills on time. Additionally, we highly recommend paying back more than the minimum. Just because you can keep a balance for an extended period doesn’t mean you should. In fact, if you take advantage of credit card introductory rates or promotions, you’ll be able to leverage credit in ways like never before.
It’s all about reading the details of your terms and preparing ahead for repayment.
#3. Not budgeting correctly
Budgets are the lifeblood of your financial success. The more you understand how to adjust your expenses, the faster you can work towards saving.
So, what makes a responsible budget? As stated earlier, it’s all in the numbers. Ultimately, you have to make more than you spend. We’ve got plenty of articles on how to categorize your cash flow.
#4. Keeping your lifestyle when you can’t afford it
After everything that’s said and done, you have to be honest with yourself. Does your current lifestyle have you spending every penny? Or is there room for growth? While the cash-only lifestyle may be too drastic to upkeep, a frivolous mindset is as well.
#5. Letting unused items depreciate
Look around your home. Do you have things that you don’t use? Now is the time to sell them if you can. First, assess if the item is still viable to others. Take that dusty corner cabinet, for instance. Next, list it on Facebook Market Place or other selling entity. You’ll flip it into fast cash quickly. There are several other free websites that can help you unload old items for cash!
#6. Forgoing stable investments
Don’t overlook your 401k or IRA accounts. Regardless of your stage of life, contributing towards retirement is beneficial for your financial future. Plus, if you have an employer that will match your 401k deposits, you’ll experience twice the reward.
Quickly fix common money mistakes
– Immediately cut spending. The exception would be for food, rent, healthcare, and utilities.
– Seek additional income. Whether it’s a side hustle or gig employment, think about ways to increase your cash flow.
– Research community support and grants.
– Talk to your creditors about adjusting your terms.
Call on a Wealth Advisor
We’re here to help. For further advice to correct common money mistakes, speak to our Achieva Wealth Advisors. We’ll provide sound advice and options for your money. We can even consult about events like marriage or the loss of a loved one. Click to schedule an appointment or call 727.431.7692 for assistance.