Hi, I’m Sarah, the Tax Associate here at Bette Hochberger, CPA, CGMA. On the side, I work as a Finance Coach, so I wanted to come on here and share how to overcome money mistakes.
We’ve all made money mistakes at some point. Maybe you spent too much on a trip or didn’t save for unexpected expenses. But as a Finance Coach, I’m here to help you see these slip-ups and give you solutions. Let’s look at typical money mistakes and how to fix them.
Living Without a Budget
Trying to handle your money without a budget is like driving without a map. If you spend without tracking, you might end up in trouble. The best way to avoid this is to start budgeting. List your monthly bills, set spending limits, and check them often. Helpful tools are budget apps or simple lists.
Not Having an Emergency Fund
A sudden doctor’s visit or losing a job can hurt your wallet if you’re not ready. By saving a bit of money every month, you build a safety net. Try to save enough to cover three to six months of regular bills. Even a little saved up can help during tough times!
Making Only Minimum Payments
Paying just the smallest amount on your credit card means you stay in debt longer and pay more in interest. To avoid this, always try to pay more than the minimum. Even a little extra can cut down interest and help you pay off your balance faster.
Not Investing Early
Waiting too long to invest means you miss out on growth over time. Start investing as soon as you can, even if it’s a small amount. Learn the basics of investing, think about using simple online tools, or ask for advice from financial helpers.
Ignoring Insurance
Thinking “bad things won’t happen to me” can leave you struggling if something unexpected comes up. Make sure you’re ready by checking your insurance like health, life, and other types. Having the right coverage is key, and it’s a good idea to check your plans each year to make sure they work for you.
Avoiding Money Talks
Not talking about money with your family or experts can keep you from learning and making better choices. Start having open chats about money. Talking about family money goals or asking experts for tips can help you make smarter money moves.
Money mistakes happen, but they’re just part of the journey. What’s important is how you respond and fix them. By knowing and fixing these common problems, you’re on your way to better money management.
Remember, every money story has lessons to learn. Learn from yours, and know that as a Finance Coach, I’m here to help guide you.
