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By Eddie V. — Published May 17, 2018
Money matters! While some people are adept at financial management, number crunching is not everyone’s cup of tea. Having a plan that meets your current as well as the future lifestyle is critical given that costs of living or healthcare are set to rise while deposit interests can decline.
Here are some tell-tale signs your behavior and actions around money need an overhaul!
Not having clear goals: If living from check to check defines you, it is time to make clear goals for the future. Think about where you want to be in the coming years with respect to money and make an action plan to get there.
Not comparing before a purchase: Comparison shopping is the buzz word, with 80% of consumers comparing the costs online before they shop in stores. On an average, consumers compare three different websites to make a buying decision. If you are not one of these, it’s time to change! Before you commit to buying something you fancy, take a day’s time to evaluate different options and compare. Doing this consistently can result in considerable savings.
No saving grace! At least 50% of families in the U.S. have not made any retirement savings with the deficit in savings overall being $4.3 trillion. While many people count on pensions or retirement benefits, these may not be enough to match your lifestyle. Invest in pre or post tax savings plans such as 401(k) if salaried and Roth IRAs and other plans if you are a small business owner. The key is to plan on spending the money that is left after investing in retirement funds.
Sticking to the same business decisions: Whether it is an insurance agent or your attorney, it is always advisable to not make a business affiliation based on friendship. Examine all your business associations to see if they have an impact on your financial status and make changes as necessary.
Not being aware of credit card pitfalls: According to Experian’s 2017 data, the average credit card dues per household in the U.S. amount to $5,700. The high rate of interest on credit card compounds the problem draining your resources. The key here is to plan a purchase and save up for it instead of resorting to quick fix credit.
Not seeking professional advice: At times, money matters get complex. If you find that you are stuck in a financial rut despite your best efforts, it is time to consult a qualified financial advisor. Professional advice can also help if the family or spouse needs to join the saving bandwagon.
Succumbing to the pressure to spend: Some people find that they are influenced by social media or peer pressure to spend on things they actually cannot afford. If this is you, it is time to set clear boundaries as to what you can and cannot afford despite peer or social pressure. Keeping up with the Jones’s is not worth it if it drags you down the financial pit. Set up a budget and plan for an indulgence by saving up in advance so you don’t have to deny yourself all of the worldly pleasures.
Not reading up: When it comes to money, ignorance is not bliss. Making a habit of reading books on financial management is important to get a different perspective and expert tips. Make time for reading by limiting your mobile browsing or TV viewing hours.
Not learning new skills: While saving the maximum from your earnings is one way to manage money, the other is to increase your earnings. Research on ways to progress in your career which can include taking up additional courses, earning an advanced degree, and learning new skills.