20 Common Mistakes People Make With Money
By: Bruce Mills
I am sure everyone can say they have made mistakes in the past with money. I know I hope I can share with my kids mistakes I made so they may avoid them. The below list of some mistakes people commonly make with money are good to take a look at where you are and were you are going. I know with my dad passing away this year really showed me the importance of a Will and about informing family members of your financial affairs.
Common Mistakes People Make With Money
1. Failure to establish clear financial goals.
2. No specific plan to accomplish financial goals.
3. Not periodically updating their financial plan.
4. Procrastinating about making financial decisions.
5. Unwillingness to make necessary changes.
6. Making financial decisions based on emotion rather than logic.
7. Failure to draft a will.
8. Not informing other family members about financial affairs.
9 Not taking advantage of methods to save taxes.
10. Failure to consider inflation in their planning.
11. Inadequate or inappropriate insurance.
12. Spending too much money on low priority items.
13. Not keeping track of how their money is spent.
14. Failure to plan for major purchases.
15. Improper use of borrowed money.
16. Lack of a disciplined savings program.
17. Being too conservative or too speculative with their money.
18. Failure to diversify their investments.
19. Failure to keep good records.
20. Failure to seek professional financial advice.
CFP1/90
Expense Tracking
In the future of our blog we can discuss each of the above mistakes in more detail. I would suggest if you do not currently track your expenses you should start now. I believe the first step in becoming Financially Free is knowing for sure where you are at.
Planning and Goals
Then I feel you should make a plan on being Financial Free. List out what your goals are and a plan. We do have Consulting Serviceto help you with this if you want it. I am not a Professional planner or Lawyer, but I can provide help with budgets, goal setting, expense tracking, debt management and more. I feel you should have a team of Professionals that you work with at times like a Lawyer, Accountant, Financial Planner, Insurance Agent, Banker. If you are married it is best to set your goal and plan together. If you don't it will be harder to reach your goals and could create strife in your marriage.
Please share with us your thoughts and suggestions. Also let us know more common mistakes with money that isn't on the above list so we can help others. Have a great day.
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