Halloween is approaching. You're probably busier on buying candies and Halloween costumes to celebrate the most happening event of the year. But what about your financial planning? Did you think about the festive season that is yet to come along with expenses?
Remember, the planning you make today can lead you to experience either a safe or a frightening financial future. Some hazardous money mistakes can make your financial state stressful.
So, plan carefully and make sure to avoid these 8 fearful mistakes.
1 The horror of not following a budget
It is important for you to follow a budget so that you can track your spending and monitor your savings as well. A budget is the best way to control your personal finances so that you don’t incur debt.
Also, evaluate it after each month and keep space for improvements.
2 Spooky habits of using credit cards
The more you use your cards, the more you’ll incur spooky debts and dig yourself deeper into the debt hole. So, whenever you go shopping, make sure that you take cash and leave your credit cards back at home.
3 Ghostly late payments and due dates
As a responsible credit card user, you must be aware that the credit card companies charge you huge fees for making late payments on your cards. If you accumulate a huge amount of late charges and penalty fees, you will find yourself in serious financial trouble; in turn, it’ll increase your monthly payments.
4 Having weird savings
Start saving money as early as possible so that you can support yourself during a financial emergency. Open a savings account and try to automate your finance to become consistent on saving. Once you get your monthly paycheck, go online and transfer money into that account.
5 Mysterious investment ideas
If you want to boost your income resources, you can try your luck in investing money. Since the investment market is a risky one, you need to take watchful steps towards your finances before putting it on a stake.
You can hire an investment broker who can guide you throughout the process of investment and make sure that you gain huge returns without committing a blunder.
6 The creepy habit of hiding cash under the mattress
Stacking money under the mattress is a big blunder. If you have the habit of hiding it under your mattress, then you’re practically wasting them.
7 Spine chilling retirement saving
Americans prefer to plan their vacation more instead of giving priority to their retirement saving. It is a wrong strategy, and this may drown you in stressful financial condition later in life. If your workplace offers a retirement fund, try to contribute money to that account so that you can build a cushion for your future.
8 Terrible idea of borrowing from the retirement fund
The most tempting option must be borrowing from your 401(k) as this is the best way to get easy access to cash.
If you do this, not only will you remove your pre-tax money, but you also have to repay it with after-tax earnings. So, don’t choose to play with your 401(k) as this will cost you dearly.
Finally, right money moves that you make will determine how good will be your financial future.
So, gain financial knowledge to become a money wise person and to minimize money mistakes.