Money mistakes are common. Whether we’re just starting out on our own or trying to manage your finances as we get older, making the most of our money is tricky. It’s not just making the most of our money, either. It’s also protecting that money. It seems crazy, but most of us don’t know enough about one of the most important things to daily life – money. To that end, here are 5 money mistakes that you could be making right now.
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Money Mistakes that Hurt Your Finances
These mistakes are some of the most common and most detrimental. They either contribute to our debt, prevent us from making the most of our money, or put our financial security at risk.
Paying Minimum Credit Card Statements
This is one of the major money mistakes that can also be the most tempting. It can seem like making minimum payments is a great way to lessen the sting of large purchases. After all the minimum is better than paying out a huge chunk, right? Wrong. Over time, paying only monthly minimums on our credit cards racks up tons of extra debt in interest, and it’s almost impossible to actually pay the card off if we need to use it again. Those payments pile up, and before you know it, you’re buried in debt.
Neglecting Your Accounts
This is another one that is all too common. Regularly checking accounts is essential to staying on top of your finances. Check those credit card statements to ensure that there are no unexpected charges. Check those bank statements for any withdrawals or debit charges that you didn’t make. Always be cognizant of what’s going on in your financial life.
Not Taking Advantage of Money
One of the biggest money mistakes we make is wasting our money, and I don’t mean by being a spendthrift. I mean by not taking advantage of it. For example. if you have a large balance, but leave it in a low interest account, what is it doing for you? Not a lot. You could take a portion of that money – not all of it – and put it in a mutual fund that historically performs well OR invest in stocks with support of a financial advisor. You’ll have an investment that will give big benefits in the long run.
Not Seeking Advice
A reputable financial planner can help you make the most of your money in all aspects of your finances. Of course, they will charge you, but that charge is well worth it to ensure that your money is working for you. I have had one working for me for over 10 years now and although there were hiccups along the way, and changes in personnel my advisor is a trusted partner. Last month I sent him a thank you note because he makes me feel smart about investing.
Not Being Proactive
Listen, even if you have a reputable financial adviser and a bank you trust you need to be on top of industry trends and news. I check financial news regularly and I check the stock market too. I don’t trust everything to everyone else. It is crucial to be informed and a partner with your financial helpers. As much as I hate math and financial details I love it when my money makes me money so I make it a habit to watch the Finance pages.
Some Money Mistakes are Easy to Fix Now
Fortunately, all of these money mistakes are easy to fix, and when you do, you can start to take control of your financial future. With just a few simple changes, all of those money mistakes can become money victory. So research a reputable financial adviser in your area, start eyeing those statements, and take control of your finances. It’s easier than you think!