Are you making some common financial mistakes? What you do with your money can get you into a financial mess, but it can also get you out.
Face it, we buy things – and that can mean trouble if we spend too much and don’t leave enough to save or pay bills each month.
Your spending makes a difference.
Taking out a loan for a new SUV or a bigger house can mean bigger payments and higher interest costs each month.
Think about it: The difference between a top-model vehicle and the entry-price model can cost you hundreds of dollars more in payments each month. The same goes for the amount of interest you’ll pay over the life of the loan. That’s money you could be using to pay off credit card debt or add to your savings.
Even the seemingly ‘little things’ can add up. Expenses like a gym membership, a new smartphone, or dinner out on a regular basis can add up.
Expert Tip: Cutting your spending by only $50 a week will save you $2,600 year – enough to pay down loans or even sink into an emergency savings account to help you cover unexpected expenses down the road.
What’s The Secret to Avoiding Common Financial Mistakes?
The key to staying ahead of spending problems, follow a budget. Knowing how much you owe and what your income is will give you a good picture of your monthly finances.
Expert Tip: Assess your needs and cut back wherever possible.
The concept is simple, spend less than you make. Then with the extra money, you can come up with a plan to put the rest into savings or invest for the future.
It can feel overwhelming. Maybe you aren’t sure where to start. Getting help from a financial professional is a great place to start. They will be able to take a fresh look at things for you.
Beware and don’t let your savings or having a little extra money in your checking account at the end of the month tempt you.
Expert tip: Set up an automatic transfer from every paycheck to go into a savings or separate account. If it’s automatic you won’t see it! Start small with $5 and grow from there.
Ready to get started? Meet with a banker today!