Five Of The Biggest Money Mistakes In The New Year

Five of the Biggest Money Mistakes in the New Year

By N.Lothungbeni Humtsoe New Delhi Dec 7 (IANSlife).Financial disasters – We all have experienced them.Some regret.

 Five Of The Biggest Money Mistakes In The New Year-TeluguStop.com

Many people see the beginning of the year as a time to resolve, set new goals or embrace the “New Year, New You” mentality.It will take planning and a shift of mindset to make this year a year of financial success.

In this article, we identify the five biggest money mistakes people make during this time of the year and what you can do to avoid these pitfalls!

Summer Watson, MHS, PhD and Jen Fontanilla, Certified Money Coach (CMC) from a live show “The Life, Love and Money Show with Summer and Jen” shares five practical steps that will help you avert money mistakes and support your financial success!

Stay away from “Lifestyle Creep”

Many of us have done it – we get a raise and we make a little more money, but rather than trying to figure out how to pay down debt or how much more we can save and put away, we think about “What can I buy”? This is where the journey of living a more expensive lifestyle also known as “Lifestyle Creep” begins.

Take that extra money and prioritize your goals.Are you able to repay consumer debt? Are you saving money for retirement? Are you able to keep a healthy amount in your emergency fund? It can be tempting to say, “Well, this is what I deserve.” It’s mine.I can afford it now.Celebrate your milestones, but don’t forget to make a money plan and prioritize your financial goals.

No emergency fund

A big lesson that the pandemic has taught us is how important it is to have an emergency fund.

Here’s where you take your extra money and work towards building funds that will sustain six months or more of expenses.If you don’t have enough cash, you will need to find other ways to support your lifestyle.This could mean that you are unable to make simple purchases or take out cash advances with high-interest rates.

And, if you don’t have a great credit score, this could cost you even more!

Consider taking any bonuses, tax refunds, or any money that is left over from your budget and put it into an emergency fund.

Paying the wrong debt first

With debt being one of the most stressful financial problems that people have, sometimes we don’t know what we should pay off first.

Do you want to pay off your house and put extra money towards your mortgage? A mortgage typically has a lower interest rate.You might consider first tackling consumer credit cards which typically have a higher rate of interest.

Be strategic about the debt you are trying to pay off.

By getting rid of your debt, it will improve your credit score and free up money, which will allow you to put more money towards your other financial goals, such as savings and investments.

Not monitoring your credit

Sign up for a free credit monitoring service that alerts you of potential danger.Paying too much attention to your credit score can cause financial problems.

It would also be very time-consuming to fix it.Protect your identity and assets and don’t put yourself in a position of trying to clean the mess up after it’s too late.

Not having insurance

Insurance is one of those things that we don’t like to think about or pay for, but when we use it, we sure are happy it was in place! It can be very costly to not have insurance.To ensure you have the right coverage, make sure to review your current policy with your agent if you already have insurance for your home or auto.

Importantly, do you have life insurance? This is the cornerstone of any solid financial plan.People can experience financial hardship if they don’t have a plan.

Be wise and protect your loved ones by putting a plan in place and preparing for the unexpected.

(N.Lothungbeni Humtsoe can be contacted at [email protected])


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Disclaimer : TeluguStop.com Editorial Team not involved in creation of this article & holds no responsibility for its content..This Article is Provided by IANS, Please contact IANS if any issues in Article .


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