Money Mistakes You Might Be Making
I really enjoy helping people with their money. I love to talk about money and wealth. I love talking about my experiences, good and bad. Knowing how my advice has changed people’s lives is heartwarming. However, to every happy story, there are also sad stories. Stories where you cannot believe what you are hearing. This is especially true when hearing people tell their story of their financial decisions or indecision. I am going to give you a short list of some of the things I hear from people, read on the internet and have experienced myself. If you are doing any of the things below, you are doing things wrong! Just as wrong as the color combination in the picture above.
Are you doing money wrong?
You do not have life insurance! – Unless you are a single person with no family and no real personal assets, you need life insurance! Even if it is just enough to cover your burial expenses. My mother passed this June and she did not have life insurance. Not that I am complaining about spending $5000 to take care of her final arrangements, but if she had life insurance, I would not have had to burden that expense. Think I am wrong about insurance? Take a look at gofundme.com and see how many people are asking for money to bury their kin. It is sad. Do it right! Get life insurance and lessen the burden on your family and loved ones.
You do not have a will! – Again, unless you are single and without family or assets, everyone needs a will. People who are married especially need a will. Tell your heirs how you want your assets distributed. Do not let the local or federal government dictate where your assets are going or who will have custody of your children. Do not place any further burden on your family as they grieve your passing. Again, my mother did not have a will and it is a big headache to settle her estate. Enough said. Do it right and get a will! You are going to pass one day, either with a will or without.
You have do not know what you are invested in! – I am honestly shocked at how many people do not have a retirement account, or they have a 401K, but have absolutely no idea what it is invested in. They have no idea when they can retire. Don’t get me wrong. If you are not a plumber, then don’t fix your plumbing. Call a plumber! So if you are clueless about retirement, talk to people who know finance! Do not talk to just one, talk to several. Find someone that seems to care about your best financial interest and has a heart of a teacher. Do not wait, do it right now and get your retirement on track! Don’t be the guy or girl that looks at the calendar and realizes they are 70 years old and still has to work to make ends meet.
You choose lifestyle over retirement! “I don’t have the money for retirement. I can barely pay my bills as it is….” Says the person that pays a $300 cell phone bill, $200 cable bill, a new air conditioner and $1000 in automobile payments…and you wonder why… Don’t be this person! You have to find balance in your financials! I hear some of the dumbest excuses in the world why people continue to over pay for products and services. I personally cut the cable and save over $60.00 a month! Over 20 years, I could have over $35,500 additional in my retirement account! Make little sacrifices now and enjoy your life later. It is called balance, just do it! Thank me later.
You are the grasshopper when you should be the ant! – Remember the fable? You chose now, instead of later. You live in the now with no regard for the future. The best plan you can make is what you are having for breakfast that day. You are not investing in your children’s college education, because you are counting on a scholarship. You are making big purchases because you should get a bonus or promotion soon. If the bank will loan you a certain amount, it surely means you can afford it, right? Does any of this sound familiar? If it does, you are doing it wrong! Prepare for the future while enjoying your life. Have balance, have purpose.
If you are making any of these mistakes, don’t fret. You can make changes and be more financially responsible. Don’t be that person, working until they are dead and don’t be that person who’s family posts a link to a gofundme account because they do not have the money for your financial arrangements. Also, don’t be that person who let’s their children take on massive amounts of student loan debt for a college degree. Be smart, make good financial decisions, plan ahead and most of all have balance in your life! Leave me a comment and tell me about your experiences, good and bad. Ask a question, I have an answer! I would love to hear from you.
Until next time…KCMO…Keep Calm and Money On!
The Angry Millionaire
Not know what you’re invested in is a personal bug bear of mine. As an accountant, friends and family often turn to me for advice on money matters. I’m regularly asked if this fund or that fund is a good investment. However, whenever I ask for more detail, they’re light on detail or don’t really know. This is a travesty – don’t put your money anywhere if you don’t know what’s happening to it.
I think if more people were financially aware of what they were doing with their money, it would benefit the entire world. I make it a habit of not telling people what to do with their money, but more so what I would do if I was in their shoes. My pet peeve are people that invest year after year in a cash only investment because they don’t want to “lose money.” When I try to explain how inflation is killing their principal, they don’t get it. I have offered people to look at their investments for them, but no one thinks it is important enough right now. When it becomes important, it is too late and their compound interest days are limited. Thanks for stopping by.
Hello Jonathan, I agree there are people who doesn’t care retirement plans. Or if they do, it’s already late for them to start and can get little amount of money to sustain their retirement life. It is very strange that others does’t make this a priority for their elderly life. That’s why I often tell my family members and friends to save, invest not only for today but also for the future until they will retire. It is also very important to educate them even if you’re not financially expert. Just by sharing your experiences is enough!
I agree and it is sad. I think we all have made our fair share of financial mistakes. In my humble opinion, I feel life should be balanced in all aspects. This includes money. Enjoy the profits of your hard work and smart decisions, but also save some for later. Too many people have this idea that when they are ready for retirement, the government is going to be there and is going to take care of them. It does not work like that. You have to be smart and save for a rainy day as they say. 🙂 Thanks for stopping by and commenting.