Finances are a constant learning game, and it is difficult to know exactly how to handle your finances ahead of time. Due to this, you are more likely to make mistakes with your money. While it is important to learn from these mistakes, it is even better to avoid making these mistakes all together. Here are a handful of tips on how to avoid the most common financial blunders:
Not Dealing With Debt Early On
It is far too easy to drag out dealing with debt. After all, it takes time to pay off credit cards and other loans. However, the longer you drag it out the more money you’ll end up paying, and the more problems you’ll end up running into.
Not Having a Budget
One of the biggest mistakes you can make with your finances is not having a budget. You need to know where your money is going, and how you’re spending it. By knowing where your money is going, you’ll become more financially responsible with what you’re buying and spending money on. Having a budget gives your finances direction, which will help you avoid a number of other financial problems.
Waiting To Start Saving
You might not have an abundance of money coming in now, but that doesn’t mean you can’t start a special savings account now. Maybe you can only put $20/month into a hands-off account now. Maybe you can work one side-gig per month, to stow away a little extra cash. A little bit put away now can do a lot, down the road.
Withdrawing Retirement Early
One of the biggest mistakes you need to avoid is taking money out of your retirement account early. Yes, you might find that you need money sooner rather than later, but withdrawing money now will cost you. The financial penalty associated with the early withdraw is far too high. You’ll be mortgaging your future to pay for the present.
These are just a few of the most common monetary mistakes that people make. By educating yourself ahead of time, you’ll be able to cut down on making these mistakes, and learn from them when they do still happen.
As a Business Banking Professional, Kim helps businesses providing commercial loans specifically meant to provide a business with the capital needed to start-up or expand. In her role, she interacts with entrepreneurs and business owners concerning future financial investments in an effort to help the business find the strategies that would work for them.
Vice President • 770-515-7028 • [email protected]agebank.com