We all have financial choices we regret. I have a big one. Several years ago a friend and I purchased a condo together in California. The housing market was at the peak of the bubble and we purchased just before it burst. With where both of our families were we had to sell. When we did, we lost all of our original investment. It was a terrible mistake and to this day I wonder if we missed something or didn’t do the proper research.
I don’t want you to make a financial mistake like I did or like the other 7 listed below. It seems with money there are two different perspectives on opposite ends. It is difficult to be in the middle, this list can help you be in the middle.
On one end of the money spectrum is allowing it to run and ruin your life and family. On the other end is a complete lack of concern for how money affects your present or future. These 7 financial choices will bring money into the right perspective.
Not Creating An Emergency Fund
We all will face an emergency at some point. These emergencies can cost 100s to 1000s or more to handle. If you have a high deductible insurance, these emergencies can crush your bank account.
Saving enough money for 6-months expenses is a great starting point.
Not Sharing Your Bank Account
I’m sure many people will have a hard time with this one. When couples share a bank account they share their money. There is no his and hers or questions about purchases made the other doesn’t know about.
A shared bank account creates transparency and accountability. It also simplifies the budgeting process.
Not Having A Budget
Budgets can be simple or can be super detailed. My wife and I simply have ballpark dollar amounts for our budget categories. We also have several categories that get automatic deposits sent to them monthly. Without a budget, it is difficult to create a healthy financial future in both the short-term and long-term.
Not Investing in Retirement
Even if you aren’t making a great wage, putting a little away into your 401K or an IRA is vital. There is no way Social Security will be bank rolling your retirement.
With many companies matching, (with varying rules of how they match) your basically getting free money. Simple math tells me free money is a good thing. If this isn’t available, an IRA is a great option.
Not Paying off Your Credit Card
Carrying a balance on your credit card is a bad call. With the average interest rate on cards being at 15 percent, carrying a balance makes no sense. Pay off your debt as fast as you can!
Having a Car Payment
The average car payment is…. drum roll please, $479 per month! According to Edmunds.com. This amount of money per month for many families is not worth it.
Just think, if you shave $200 off this payment what would happen. You could put it towards credit card debt, your retirement, or an emergency fund.
Ultimately, as long as the vehicle can get you from A to B safely, run from a car payment of any kind. Save up to buy.
Not Shopping For Insurance
Every year we all should go shopping. It would be wise to revisit that 10-year old car policy or your home owners insurance. Shopping for better rates can save you hundreds and over time can save you thousands.
Which Financial Choices Do You Need To Work On
Which one of these financial choices can you start working on? Changing your patterns now will make a huge difference for your future. Try and take on a few of these tips to make 2017 your best financial year ever.