Hey neighbors!!
Great to see you all today! Just wondering how many of you have ever experienced debt and what you have done to get out of debt? Or perhaps you are still in the midst of playing catch up to try and get out of debt. I am going to share 5 Financial Errors many people fall into.
Savings
Most people do not save for their financial future. I know, before you say it, you are going to tell me you can not afford to save. That is what most people think. You would be amazed though to see how easy it is to put just $10 a week into savings. Doesn't sound like much, but at the end of the year, you will have $520 in your account that is normally not there. And it is so easy to save $10 a week, just by cutting back on snacks, the extra meal out, saving your daily change, etc. Just implement a couple of these and you should be able to save $10 a week. Skip that extra Latte or Espresso.
Plan Ahead
Now, planning ahead does not just include saving as seen above, it includes planning your weekly/monthly budget. Many go off willy nilly without any thought for budgeting their finances. This is where you spend money and then that bill you forgot shows up. If you make a budget for each week/month, and stick by it, including your saving each week it will make your life easier. You won't all of a sudden have a regular bill staring you in the face that you forgot to pay. If you don't know how to write a budget, consider taking an online personal finance course.
Credit Cards
Beware of credit cards. It is so easy to see something you want or think you need and then whip out that little plastic card to pay for it. Unfortunately this is what causes many couples financial grief. Now you have another bill to pay and usually once you have started down this path it is far too easy to keep charging. Am I saying credit cards are wrong? No, they serve a purpose, but be sure to use them properly. We found out that we did not have any type of credit report that we could show when we went in for a loan from the bank. SO, we decided to apply for a couple credit cards. Even that is difficult without a credit history. Then just use the cards occasionally to make a purchase and immediately pay them off. Sometimes you have to let what you charged run for a month just to get it to show up in your history. By doing this you can build your credit for the time you need a car or home loan. This is where your planning ahead and budgeting will come in. Never charge more than you can reasonably pay off.
Record All Transactions
You were given a bank book for a reason. It is to record all you take in and all you spend. I don't know how many times I have heard someone say they had checked their account before making a purchase, and now they are under in their account. Normally this is due to a floating/pending transaction. It appears when it is first made, then sometimes disappears until the transaction actually goes through. So, you think you have more available than there actually is. If you keep track of this spending in your bank book or other form of record keeper.
Using a Rent to Own
Many couples and college students fall into the rent to own schemes. Usually for furniture or electronics. I saw my parents do this many times, and they either finally paid it off paying several times what the item was worth, or they lost the item by missing payments and losing all they had already paid. Oftentimes the item you need can be purchased just by saving for a few months. If not, consider looking in the classifieds or online for used items. A much less expensive way to go.
Financial Advisors Like Barron Advisors
Should you find yourself already in debt, you may want to look into debt consolidation with someone like Barron Advisors. They can help you by either consolidating all your debts and working out a payment plan or by giving you other good advice to help you solve your financial problems and hopeful keep you free from debt collections or worse.
Thanks again for stopping by! If you have some other ideas, please feel free to share them in the comments.
Great to see you all today! Just wondering how many of you have ever experienced debt and what you have done to get out of debt? Or perhaps you are still in the midst of playing catch up to try and get out of debt. I am going to share 5 Financial Errors many people fall into.
Savings
Most people do not save for their financial future. I know, before you say it, you are going to tell me you can not afford to save. That is what most people think. You would be amazed though to see how easy it is to put just $10 a week into savings. Doesn't sound like much, but at the end of the year, you will have $520 in your account that is normally not there. And it is so easy to save $10 a week, just by cutting back on snacks, the extra meal out, saving your daily change, etc. Just implement a couple of these and you should be able to save $10 a week. Skip that extra Latte or Espresso.
Plan Ahead
Now, planning ahead does not just include saving as seen above, it includes planning your weekly/monthly budget. Many go off willy nilly without any thought for budgeting their finances. This is where you spend money and then that bill you forgot shows up. If you make a budget for each week/month, and stick by it, including your saving each week it will make your life easier. You won't all of a sudden have a regular bill staring you in the face that you forgot to pay. If you don't know how to write a budget, consider taking an online personal finance course.
Credit Cards
Beware of credit cards. It is so easy to see something you want or think you need and then whip out that little plastic card to pay for it. Unfortunately this is what causes many couples financial grief. Now you have another bill to pay and usually once you have started down this path it is far too easy to keep charging. Am I saying credit cards are wrong? No, they serve a purpose, but be sure to use them properly. We found out that we did not have any type of credit report that we could show when we went in for a loan from the bank. SO, we decided to apply for a couple credit cards. Even that is difficult without a credit history. Then just use the cards occasionally to make a purchase and immediately pay them off. Sometimes you have to let what you charged run for a month just to get it to show up in your history. By doing this you can build your credit for the time you need a car or home loan. This is where your planning ahead and budgeting will come in. Never charge more than you can reasonably pay off.
Record All Transactions
You were given a bank book for a reason. It is to record all you take in and all you spend. I don't know how many times I have heard someone say they had checked their account before making a purchase, and now they are under in their account. Normally this is due to a floating/pending transaction. It appears when it is first made, then sometimes disappears until the transaction actually goes through. So, you think you have more available than there actually is. If you keep track of this spending in your bank book or other form of record keeper.
Using a Rent to Own
Many couples and college students fall into the rent to own schemes. Usually for furniture or electronics. I saw my parents do this many times, and they either finally paid it off paying several times what the item was worth, or they lost the item by missing payments and losing all they had already paid. Oftentimes the item you need can be purchased just by saving for a few months. If not, consider looking in the classifieds or online for used items. A much less expensive way to go.
Financial Advisors Like Barron Advisors
Should you find yourself already in debt, you may want to look into debt consolidation with someone like Barron Advisors. They can help you by either consolidating all your debts and working out a payment plan or by giving you other good advice to help you solve your financial problems and hopeful keep you free from debt collections or worse.
Thanks again for stopping by! If you have some other ideas, please feel free to share them in the comments.
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