Ever noticed your bank account going down and are unsure of why? Here are some quick money mistakes to avoid from our team’s financial literacy peer mentors!
- Living Beyond Your Means
Making continual purchases that go beyond your financial means is a common mistake people make with their finances at all ages. It’s critically important to emphasize realistic thinking when deciding what you can afford.
- Living Paycheck to Paycheck
Not having a budget (or even worse – not knowing where your money is going!) can quickly spiral into financial debt. Take time to craft a realistic budget where you track your income and expenses and try to stick to it.
- Ignoring High-Interest Debt
Ignoring credit card debt, college loans, and other forms of high-interest loans can quickly snowball and erode one’s financial health. Taking care to prioritize paying off high-interest debt first helps save money in the long run.
- Lack of Emergency Fund
Accidents and unforeseen events can happen to you. Yes, you! That doesn’t mean one can’t prepare for them the best they can. Aim to have three to six months’ worth of living expenses saved in case of emergencies. Or even $500 to start!
- Not Saving for Retirement
Waiting to save for retirement can hurt one’s wealth because the sooner one begins saving for retirement, the more time the money has to grow. Small, consistent contributions to a 401(k) or IRA can make a big difference.
- Lack of Adequate Insurance
Not having insurance, where it be health, life, or property insurance, can leave one vulnerable to large amounts of financial risk. Protect your assets by making sure you have appropriate insurance.
- Impulse Spending
Constantly giving in to emotional, impulsive purchases can quickly hurt one’s finances. Employ mindful spending practices and distinguish between needs and wants.
- Not Seeking Help
Don’t feel embarrassed about seeking help with your finances! All of us peer mentors are excited and willing to help to the best of our ability. Financial advisors and credit counselors are great resources to help get your finances healthy again or maintain steady growth.