Financial Mistakes To Learn From

Financial Mistakes To Learn From
In this day and age, there really shouldn't be any reason to​ make certain financial mistakes .​
Do a​ search of​ the internet and you will find that there are thousands of​ articles out there that warn you of​ the pitfalls of​ certain choices .​
Advice for living a​ financially stable life is​ everywhere .​
What are you waiting for?
Here are the most common mistakes that I've seen people make .​
I've even made a​ few of​ them myself .​
These are the financial mistakes that you can learn from .​
You've probably made a​ few of​ them yourself, they are very common.
Mistake #1: Using that little plastic card to​ get what you want.
We'll just start off with the number one mistake out there .​
This is​ probably the most common mistake in​ the country .​
Almost every person in​ the US today has a​ credit card .​
It is​ almost like a​ right of​ passage when you turn eighteen .​
There are even people out there that aren't eighteen yet that have them.
Credit card debt is​ the fastest way to​ ruin your finances .​
It is​ easy to​ acquire and difficult to​ pay off .​
The minimum balance doesn't pay off enough of​ your outstanding balance to​ help you very much .​
You will be paying on your balances for decades .​
Even a​ $500 balance can take you over a​ decade to​ pay off if​ you simply make the minimum payment.
Add in​ the interest rate, which rarely goes down .​
If you miss a​ payment, you will really be paying the bank .​
Thirty percent interest is​ common on a​ credit card once a​ payment has been missed .​
And you only have to​ miss that payment by a​ day -- which can happen in​ the mail or​ processing if​ you don't plan ahead well enough.
Mistake #2: Buying more home than you can afford.
With the real estate market in​ the state it​ is​ today, many people are regretting their housing decisions .​
Adjustable rate mortgages are acceptable loan products for some people .​
But only if​ they can afford the maximum rate that the loan can hit if​ interest rates go up .​
Too many people only consider that introductory rate .​
They stretch and purchase as​ much as​ they can afford .​
Then, when rates go up and their rate adjusts, they can't afford the payment .​
Add that to​ a​ slowing housing market, and you may have a​ foreclosure on your hands.
If you are going to​ buy a​ home, make sure that you purchase what you can afford .​
Take out a​ fixed-rate mortgage so that you know what your payments will be .​
If rates go drastically down in​ the next couple of​ years, you can always refinance .​
If rates go up, you are protected .​
Try to​ aim for a​ 15-year mortgage over a​ 30-year .​
It will save you hundreds of​ thousands in​ interest .​
But if​ you can't do it, a​ 30-year fixed-rate mortgage is​ an​ acceptable loan choice for the purchase of​ a​ home.
Mistake #3: Not controlling your money.
Too many people live paycheck to​ paycheck .​
They have no savings .​
They have no retirement plan .​
They have nothing to​ back them up in​ the case of​ an​ emergency .​
They have no control over their money.
You have to​ take control of​ your finances if​ you want to​ retire someday .​
You have to​ learn how to​ budget, save, invest and spend .​
All it​ takes is​ a​ little time .​
And once you get in​ the habit, you will notice that your life has more control .​
You should say where your money goes, not lenders or​ creditors or​ anyone else.
Mistake #4: Not saving for retirement.
There are more seniors in​ the work place now than there were twenty years ago .​
And even more than there were fifty years ago .​
If you want to​ retire with enough money to​ live comfortably, you have to​ start putting something back today .​
Start an​ IRA .​
Contribute to​ your employer's 401(k) plan .​
Figure out how much you need to​ invest and find a​ way to​ do it .​
This is​ your future .​
You don't want to​ reach sixty and realize that you can't afford to​ stop working .​
There is​ no guarantee that you will be able to​ draw social security or​ other forms of​ assistance then .​
What if​ you become ill and have to​ retire? What if​ you get hurt? Prepare for the future .​
Start saving for retirement today.

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