Stop Making the Same Money Mistakes!
Are you making the same money mistakes year after year – without realizing it? Read on to discover the mistakes you might be making – and the steps toward lasting change.
Mistake #1: Emotional Spending. In a recent study, people who had just watched a sad movie were willing to spend more than those who had just watched other type of movies. So before you head to the mall, take a note of what you’re feeling. Are you sad? Frustrated? Lonely? There are other ways to make yourself feel better.
I personally used to be an emotional spender. After a stressful day on my way home I would stop at the mall and buy something to get that self satisfaction. I don’t want to say that is bad, the negative effect comes in when you spend on credit or you spend a lot. If a little (maybe a $5.00-$10.00) purchase will lighten your day, then go ahead and lighten up your mood, if this is not a daily habit it will not negatively effect your financial situation, but stay in control.
Unfortunately, many people when disappointed and depressed will go ahead and over spend and over eat to give them a short satisfaction. This is not the way to treat your problem. If you want to spend for self satisfaction, go ahead and buy a gym membership and learn to work out the tension from your body by exercise or having a hot bath at the end of the day. This would be well spending money to really treat your problem.
Mistake #2: Ignoring retirement. Are you planning for retirement? If not, you should be! Currently 53% of those in the workforce have no pension, and 32% have nothing set aside for retirement. Planning to rely on Social Security? The current average payout is just around $970 per month or $11,640 annually – and could be even less, depending on your work history.
Ask me for an update Financial Analysis, that will help you determine how much you need to start saving in order to reach your goals.
Mistake #3: Not preparing for the unexpected. Still using the “It could never happen to me” excuse? Get real: Tragedy can strike anytime, anywhere. The attorney who distributed federal founds to the families of 9/11 victims found that fewer than 25% of the victims had wills. Make sure you have an up to date will! And don’t neglect income protection: if you have young children, many financial experts now recommend life insurance equivalent to eight to 12 times your annual income.
Mistake #4: Paying too much for your debt. How much are you paying to “borrow” money from creditors? If you have revolving credit card debt near today’s average rate of 13%, pay it off as soon as possible. Why? As the years go by, that debt could cost you thousands. The average North American family carries $9,312 in credit card debt. If they pay only the minimum 2.25% on the balance each month at 15% interest, it will take them more than 27 years to pay it off – and cost an additional $11,120 in interest, for a total of $20,432.
If you would like information on consolidating your high-interest debt into a single, fixed, lower-interest loan just send me a message on Contact Us page and I will contact you.
Mistake #5: Not earning what you’re worth. Are you among the 40% of population who are eager to start their own business and earn what they worth? What’s holding you back? Identify your real goals and create a plan for reaching them. Determine how much money it will take to get started, and create a savings plan to reach your goal.
Related posts:
- Have You Made These Life Insurance Mistakes?
- Holiday Spending – without Holiday Debt.
- Tips for Making a Wise Insurance Purchase
- Bank of Canada Lowers Interest Rate
- Begin again in 2010!
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