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Even people who think they have a bright financial future are probably missing some important
elements in their plans. If you’re trying to be smarter with your money, you’d be surprised how much
you can get accomplished if you make all the right choices the first time. A combination of long term
thinking and short term thinking can help you secure financial independence.
Today I’m sharing 4 worst financial decisions people make.
1. Getting Bad Credit Cards,
If you have a reasonably good credit score, you don’t need to use a card with no rewards and a high
APR. Pay off your debts and break up with the cards that aren’t treating you right. Credit card companies
love people with great credit histories – they don’t have to worry about whether or not they’ll get their
money from you, and they’ll give you plenty of incentives to choose them over their competitors. They
want your money and you want their perks. Everyone wins.
2. Assuming a Savings Account is Enough
Savings accounts are great, particularly if they’re high yield. Money Market accounts offer more benefits
than traditional savings accounts, but often require a much larger investment. If you want your savings
to grow, you need to put them to work. It might help to learn to trade. Start with smaller investments,
get comfortable, and slowly discover a level of risk that you’re comfortable with. You’ll gain far more
than you will by letting your money sit in savings.
3. Failing to Budget for the Long Term
A lot of people forget about retirement. A shocking amount of people don’t have much, if anything, set
aside. Think about investments that will help you out in the long term, and work towards that goal.
Purchasing a house while you’re still young can set you up for retirement by drastically reducing your
expenses later on. Creating a retirement account is a must – especially if your employer doesn’t offer
one and match your contributions.
Related post: You need a Roth IRA savings ain’t gona cut it
4. Not Spending Wisely
Having a budget and sticking to it is wonderful, but does your budget really need to be as big as it is? Do
you check for coupons before you purchase things? If you spend a ton on groceries you may want to check out Ibotta they have a ton of coupons you can use for your favorite store items and they even offer cash back with just a simple picture of your receipt. Do you sign up for rebates when you shop online?, E-bates is a great place to start earning cash back on your favorite items that you were already going to purchase
Do you purchase high quality second hand items, or do you buy new every time? Trimming a little more
here or there can help you accumulate enough extra cash to take a vacation. Always be looking for ways
to save more and spend less. You’ll have money leftover for luxuries you thought you might have never
been able to afford.
Always live within your means and seek better opportunities for your future. Everyone makes blunders
every now and then, but don’t let but one incident where you couldn’t control your financial impulse control
dictate your whole future.
Guest Post: Alana Downer works at Canadabiz.net and she is an experienced blogger whose main interest lie infinances and new technologies. She might often be found online, sharing her insights into technology trends which shape the way both businesses and individuals function.
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