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Common Financial Mistakes

man frustrated with his finances.

Are you making some common financial mistakes?

What you do with your money can get you into a financial mess, but it can also get you out.

Face it, we buy things – and that can mean trouble if we spend too much and donโ€™t leave enough to save or pay bills each month.

In this article we will cover:

  1. How your spending can make a difference
  2. The secret to avoiding common financial mistakes

Your spending makes a difference.

Taking out a loan for a new SUV or a bigger house can mean bigger payments and higher interest costs each month.

Think about it: The difference between a top-model vehicle and the entry-price model can cost you hundreds of dollars more in payments each month. The same goes for the amount of interest youโ€™ll pay over the life of the loan. Thatโ€™s money you could be using to pay off credit card debt or add to your savings.

Even the seemingly โ€˜little thingsโ€™ can add up. Expenses like a gym membership, a new smartphone, or dinner out on a regular basis can add up.

Expert Tip: Cutting your spending by only $50 a week will save you $2,600 year โ€“ enough to pay down loans or even sink into an emergency savings account to help you cover unexpected expenses down the road.

Whatโ€™s The Secret to Avoiding Common Financial Mistakes?

The key to staying ahead of spending problems, follow a budget. Knowing how much you owe and what your income is will give you a good picture of your monthly finances.

Expert Tip: Assess your needs and cut back wherever possible.

The concept is simple, spend less than you make. Then with the extra money, you can come up with a plan to put the rest into savings or invest for the future.

It can feel overwhelming. Maybe you arenโ€™t sure where to start. Getting help from a financial professional is a great place to start. They will be able to take a fresh look at things for you.

Beware and donโ€™t let your savings or having a little extra money in your checking account at the end of the month tempt you.

Expert tip: Set up an automatic transfer from every paycheck to go into a savings or separate account. If itโ€™s automatic you wonโ€™t see it! Start small with $5 and grow from there.

Ready to get started on the right path with your finances? Meet with a banker today!