Money Matters
Do bad money habits constrain your financial progress? Many people fall into the same financial behavior patterns, year after year. If you sometimes succumb to these financial tendencies, now is as good a time as any to alter your behavior.
#1: Lending money to family & friends. You may know someone who has lent a few thousand to a sister or brother, a few hundred to an old buddy, and so on. Generosity is a virtue, but personal loans can easily transform into personal financial losses for the lender.
#2: Spending more than you make: Living beyond your means, living on margin, or whatever you wish to call it- it is a path toward significant debt. Wealth is seldom made by buying possessions; today’s flashy material items may become the garage sale junk of the future.
#3: Saving little or nothing: Good savers build emergency funds, have money to invest and compound, and leave the stress of living paycheck to paycheck behind.
#4: Living without a budget: You may make enough money that you don’t feel you need to budget. In truth, few of us are really that wealthy. In calculating a budget, you may find opportunities for savings and detect wasteful spending.
#5: Frivolous spending: Advertisers can make us feel as if we have sudden needs; needs we must respond to, or ones that can only be met via the purchase of a product. See their ploys for what they are. Think twice before spending impulsively.
#6: Not using cash often enough: No one can deny that the world runs on credit, but that doesn’t mean your household should. Pay with cash as often as your budget allows.
#7: Inadequate financial literacy: Is the financial world boring? Too many people, it can seem that way. The Wall Street Journal is not exactly Rolling Stone, and The Economist is hardly light reading. You don’t have to start there, however. There are great, readable, and even, entertaining websites filled with useful financial information. Reading an article per day on these websites could help you greatly increase your financial understanding.
#8: Not contributing to retirement plans: The earlier you contribute to them, the better; the more you contribute to them, the more compounding of those invested assets you may potentially realize.
#9: DIY retirement strategy: Those who save for retirement without the help of professionals may leave themselves open to abrupt, emotional investing mistakes and other oversights. Another common tendency is to vastly underestimate the amount of money needed for the future. Few people have the time to amass the knowledge and skill set possessed by a financial services professional with years of experience. Instead of flirting with trial and error, see a professional for insight.
-Bill Dowell
Vision Financial Group, Inc.
4505 Pine Tree Circle, Birmingham, 35243
205-970-4909, www.vision-financialgroup.com
Investment Advisory services offered through Investment Advisors, a division of ProEquities, Inc., a Registered Investment Advisor. Securities offered through ProEquities, Inc., a registered broker-dealer and member of FINRA & SIPC. Vision Financial Group, Inc. is independent of ProEquities, Inc. Copyright 2006-2018 Broadridge Investor Communication Solutions, Inc. All rights reserved.
