Avoid These Financial Mistakes To Have Good Financial Health

So many people find themselves living from paycheck to paycheck, not looking toward the future, spending their money before they’ve earned it, and so on and so on…it’s a vicious cycle. And once you’re in this cycle, it isn’t easy to get out, you find yourself going nowhere fast.

If this is you and you’re ready to stop going nowhere and start going somewhere, avoiding these financial mistakes will help you jump off the vicious cycle you may be on, and will put you on the road to greater financial success.

Before we begin, remember:  No one is perfect and eveyone can make a mistake now and then…the important thing is to be able to recognize it and make a change. For example, I read this about some very famous people:

• At one point Mark Cuban was too poor to even open a bank account.
• Lady GaGa has been through bankruptcy.
• It is said that Michael Jackson was $400 million dollars in debt at the tiume of his death.
• When Thomas Jefferson died, his family had to sell Monticello to pay his debt.

Get On Track By Avoiding These Financial Mistakes…

• Not planning for the future – The future is going to happen, whether you’re ready for it or not. By failing to plan for such things as retirement, emergencies, families or disasters, you’ll find yourself trying to dig your way out of debt.
• Living on borrowed money – Credit cards are great, as long as you use them wisely…if you’re going to use them for convenience, pay them off every month…you’ll be keeping the interest in your wallet and not giving it to the lender.
• Spending every penny of every paycheck – Develop the habit of saving a percentage of every paycheck (even if it’s a small percentage). You may have to cut out a trip to the coffee shop or a night out to dinner in order to do this, but if you don’t, when unforseen problems occur, such as a missed paycheck, you won’t have any savings to bail you out. One way to do this is to set up an automatic transfer every month from your checking to your savings, this will help you from being tempted to spend it all instead of saving it. Additionally, you will enjoy watching your savings account start growing.
• Not living on a realistic budget – Living on a budget will help you pay your bills, and have money left over at the end of the month, money you can save or invest. Along with your budget, set long and short term goals to help you prepare for the future as well as realize your dreams.
  • As you plan your budget, don’t forget the small things you spend on a regular basis, such as your morning coffee or that ice cream cone on your way home from work…if you don’t include them in your budget, your budget will literally get “nickeled and dimed to death”. In order to keep your budget, you may have to give up some of these little costs periodically.
• Ignoring your credit score – Credit scores aren’t just for taking out loans or opening new credit cards, they are run for background checks such as when you are applying for some jobs, when you’re trying to rent an apartment, when you’re getting an insurance quote, or when you’re signing up for utilities.

At Whitcomb Insurance Agency, we offer Financial Services, including Long Term Care, Retirement Planning, Annuities and Disability. All of these policies and investments can be customized to fit your personal needs.

We would be happy to sit down with you, answer any questions you might have, whether it’s about auto, homeowners, small business or financial services. You can count on us to be totally honest and upfront with you!

Contact us or give us a call at 425-391-8731.