Believe it or not, there are some financial mistakes that almost everyone makes. And some of these may surprise you. If you’re really smart when it comes to financial matters, you may find that you don’t make any of these mistakes. But if you do, now would be a good time to address them.
Spending too much on housing
If you want to get ahead financially, it’s important that you heavy up on your saving. In fact, most experts say that you should try to save one dollar for every three dollars you earn. But this may not be possible depending on how much you’re spending on your housing. Financial gurus used to say you should spend about one third of your income for housing. However, if you’re carrying student loan debts, paying for childcare and carrying other debts, this may be much too much.
Not investing enough in your career
You could earn a promotion faster if you invest in a career coach or some kind of development program. If you elect career coaching – one-on-one – you may have to pay up to $200 an hour. As an alternative to that, you might be able to get good advice simply by meeting with older, more experienced colleagues over coffee, lunch or dinner.
Falling into spending traps,
Do you have rewards credit cards? Then you might be falling into what financial experts call “purchase acceleration ” This is because if you can see a reward in sight there’s a lot of pressure to increase your spending and you could end up spending more than you should. Plus, these credit cards usually carry higher interest rates – like 2% – more than the cards that do not come with rewards.
Not negotiating over prices
Never take it for granted that posted prices are set in concrete. Big-box stores and even department stores will sometimes match their competitors’ prices. Before you buy something – especially a big-ticket item – try to negotiate. Prices are often more flexible than you might think.
Having only one source of income
If you have a job and you think that’s enough, you might want to think again. Given the state of the economy, you may be vulnerable to be laid off. If you can earn money from several different sources, you will increase your financial stability. Part-time jobs you might get to increase your income include a teaching gig at a local school, a moneymaking blog or some kind of freelance work.
Relying on Social Security
If you’re scheduled to retire sometime around 2037, good luck. That’s when the Social Security trust fund is expected to run out. If nothing changes, benefits are going to shrink to about three fourths of what they are now. The reason for this is because Social Security will be able to pay out only money that is being paid into the system. Instead of banking on Social Security, you need to figure out how you are going to fund your retirement with your own savings.
Getting too far (or too little) into debt
If you’re too afraid of going into debt, you may miss out on some good opportunities. However, if you take on too much debt, this can be disastrous. Debt is like a San Francisco fog. It can just creep up on you on little cat feet. Unfortunately, getting out of debt is much easier than getting into it. However, our debt counselors can work with your creditors to get your debts reduced – probably to just a fraction of what you owe – and help you develop a payment plan that can get you out of debt in 24 to 48 months. We understand that might seem like a long time, but it’s actually about as fast as you can realistically expect to become debt free if you have $15,000, $20,000 or more in debts. Call our toll-free number today for immediate help.
