December is the month when you finish all financial tasks and move forward to the next year with new financial plans and goals.
For example, this is the ultimate time when you should complete making charitable donations if you wish to get a tax deduction.
End of the year is also the ideal time to make new financial goals.
This is also the ultimate time when you should leave behind all the financial mistakes you have committed throughout the year.
Because financial mistakes are fatal; they will not let you achieve any financial goal. You should move forward with better financial insights.
Here are 9 financial mistakes that you should leave behind and move forward to see a better financial future:
This is the perfect time when you need to review what you have spent throughout the whole year. By doing so, you will understand your bad money decisions.
Needless to say, you will be able to avoid the same in the coming year.
Holiday time is fun but expensive. You should be prepared for the expenses from 2-3 months earlier.
Many retailers or online shopping portals announce their pre-holiday deals or discounts much earlier.
Thus, if you do not have enough money in hand, you will not be able to buy them.
If you follow this budget, you can easily meet all the expenses without facing money problem.
Some people accumulate quite a bit of credit card debt during the festive season, which is a fatal blunder.
Remember, the first quarter of a year is very vital, you need to prepare yourself for the tax season (April).
Thus, if you have to manage a huge debt, then you will be in serious financial trouble in the new year.
The 529 college savings account plays a vital role in securing your child education. How?
Since education cost is rising fast, you should safeguard yourself from accumulating huge student loan debts to fund your child's education cost.
This account is also tax advantaged in many states.
I bet most of you took a financial resolution to make a contribution to a retirement savings account last year, which is still undone.
If you are one of them, then you may not be able to secure your retirement days; unfortunately it is a truth.
Many people think that they are too young to start retirement savings.
But they don't know that the earlier they start saving for retirement, the more money they can save.
The reality is, there is no right time and age to start saving for retirement.
Since the lifestyle cost will not be the same when you will retire, you should try to save as much as you can to maintain your current lifestyle in your golden days.
If you don't do that, you will lose the benefit.
Remember, you can use the fund for more than basic medical expenses (LASIK surgery and glasses, dental treatments, and Alcoholism treatment).
Most of us love to overspend when it comes to planning a trip.
You don't give a second thought before using a credit card to book a flight or a costly hotel.
This habit is dangerous since you have to pay the credit card bills on time.
So, from now onward, make sure you plan a trip staying within your means. Before using your credit card, make sure you can afford the bill.
If you are one of them who live paycheck to paycheck, then be aware.It could be a sign of falling into biggest financial trouble.
Living paycheck to paycheck indicates that either you are living beyond your means or your monthly income is not sufficient.
Thus, you will be able to build a savings cushion.
And, if your monthly income is not enough, then you have to try to boost your income.
Try to implement this strategy this year to stay away from financial problems.
57% of people in our nation have less than $1000 in their bank account; 39% of people have no savings!
Shocking or frightening!
I think it is frightening because not having enough money in the bank account can lead to major financial havoc.
Some people even use their retirement savings to manage an emergency, which is even a fatal mistake.
So, if you haven't yet built an emergency fund, then make sure you work on this financial To-Do in the coming year.
By doing so, you will be able to avoid emergency like job loss, sudden illness, natural calamity, etc.
As per the Wells Fargo study, 60% of Americans are investing too conservatively for their retirement. They are heading towards an insecure retirement due to lack of knowledge in investments.
Financial experts suggest that people who are doing well with their money should make investments to grow their money.
If you have already tried to make investments that didn't work well, then it is the time to make changes in the strategy to get a better result.