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The current economy can strain any budget. The feeling of ‘not knowing’ what to expect certainly is a factor. Check out the list of common mistakes that people make with their finances courtesy of Equifax.
- Spending more than you earn. Consider reducing spending on nonessential expenses and consider renegotiating contracts for your monthly bills like cable, internet, phone, and others.
- Putting off Financial Planning. Make retirement planning and paying off debt a priority. Start with small steps like creating a to do list and checking in weekly on your achievements.
- Failing to save for emergencies. According to Equifax, 60% of Americans don’t have $1000 in savings to cover an emergency. It’s suggested that you save at least 10% of your net income. Try starting with as little as 1% and increase until you can achieve that goal.
- Postponing Retirement Savings in Life. Having the available income is the key. Save early so that your money will grow over the years.
- Taking a long time to pay off high interest debts. Eliminating high interest debt saves money eventually.
- Always buying new cars without considering used options. The value of new cars drop 25% as soon as you drive off the lot.
- Not buying enough insurance coverage. Review your insurance yearly and evaluate your needs based on past life experiences.
- Not monitoring your credit scores and credit reports. Knowing your credit scores help you to know what lenders see when you are borrowing money.
- Lacking an investment strategy or not sticking to one. If investing, create a strategy and stay with it.
- Not having a will. Create a legal document that defines what you want to happen to your money and assets.
