Mistakes are a part of life. Unfortunately, financial mistakes can be expensive, so it’s best if we can avoid making them. Here are a few common money mistakes that we all ought to aim to avoid.
Living beyond our means. If we spend more than we earn, that’s a recipe for financial disaster. Living within our means is much better, but even that isn’t best. Living below our means is one of the key financial success principles mentioned in the best-selling book, The Millionaire Next Door.
Not having an emergency fund. Emergencies occasionally happen. It’s not a matter of if one will occur, but when it will occur. The big question is: will we be financially prepared when it does? For example, your car tire gets ruined and you have to buy another one. Having that $200 or so is a relief. We don’t have to go without, and we don’t have to put it on a credit card and rack up credit card debt.
Only making the minimum payment due on our credit cards. Credit card companies absolutely love it when we only pay the minimum due on our cards, because of the interest that we end up having to pay. Paying only the minimum due each month could cause you to be in debt for many years and could easily cost you thousands of dollars in interest. Always aim to pay more than the minimum.
CCOA’s financial professionals can help you create financial stability and a plan to reach your personal financial goals. For a free appointment, just call (479) 521-8877, or fill out our easy online form by clicking here.
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