How to Avoid Financial Mistakes

Weigh it out and look for the catch. It never fails every weekend in the circular some store is advertising the "greatest sale of the year". Consumers tend to justify spending money when getting a bargain. The question is though what really is a bargain. Is it worth driving 20 miles to save two dollars on a product? Probably not so try to look at the big picture. Nowadays, with gas prices many people search for the "bargain". The problem is the gas 15 miles away may be 5 cents cheaper per gallon but you are wasting it driving there.

Be smart about phone lines. Ten years ago it was very uncommon for someone to have a cell phone and no landline. However, with technology today many homes only have cell phones. With both spouses taking on financial responsibilities it is likely no one is home throughout the day. It may not make sense to pay for a land line that is barely used. It is a great way to cut expenses, yet on the other hand it can skyrockets costs. Most cell phones have a payment and minute plan. If you exceed the amount of minutes you use your bill can increase dramatically. Be cautious when using your cell phone. If there is a phone call that is going to last for an extended period of time make it during the off hours when you are not charged.

Check and improve your credit report regularly. The better credit rating you have the more discounts you are eligible for. For instance, mortgage rates are lower for homeowners with good credit. The savings on your mortgage alone could be hundreds or even thousands a year. It is worth the legwork to improve your credit to save some money. Other discounts for good credit are car insurance and lower interest rates on your credit cards or loans.

Don't budget too strict. Let me give you an analogy anyone who has ever gone on a strict diet has probably gotten frustrated and cheated a lot. As Americans we do not like to be restricted or told what to do all the time. The same goes for budgeting. If you budget yourself to the penny and allow for no wiggle room your budget will most likely fail. The key to budgeting is the same as dieting allow yourself to cheat every now and then. For instance, leave an extra $60 every week to do what ever you want to do with it. I urge you all to get a daily spending journal for one week. Basically this will give you an idea of every penny you spend. The realization will come that you would have extra money left over at the end of the week if you did not buy the magazine at the supermarket checkout counter 3 mornings last week. Every penny adds up and by keeping the daily spending journal you will see where the "extra" money goes.

Know what your spouse is doing. It is common for one of the spouses to handle the finances in a home. However, it never fails to amaze me how in the dark the other spouse is. I understand we should trust who ever is handling the money, but there may be financial decisions that you have input on that you are not even aware of. More importantly, if something happened to the person in charge of finances someone has to be able to assume that role. Pay your credit cards on time. Letting your bills pile up is going to get you more in debt. Interest and fees will be added to your existing balance if these accounts are not paid on. Be sure to be organized and know when your bills are due. If you are on a 0% rate for a fixed amount of time it is imperative to pay those on time. If a payment is late or missed the interest rate will go up very high.

Got a question? Then contact our Education Team on 561-883-2398 Ex.310 United conducts regular seminars on financial education, including "How to Budget", come along and join us. To reserve your seat contact our Education Team on 561-883-2398 Ex.310