Failing to Stick to Your Budget : You’ve made your budget then what? Your tire blows, or the pair of shoes you’ve been obsessing over just went on sale. These purchases that you make that you don’t plan for can cause your budget formula to be derailed. In order to reach a financial goal, you have to consistently stay on track. Separate your wants from your needs. Save for what you want and pay now for what you need.
Failing to Diversify Your Savings : Don’t only have one savings account that you allocate your funds into. Global banks such as Bank of America and smaller credit unions have different types of savings accounts with different interest rates. Create a savings account that you will never touch and one account for savings goals, such as vacations or a car down payment. The account with the highest interest rate should be account that you never touch. In the long run, this is the account that should have the highest sum.
Failing to Invest : Small investments that you make now can rescue you in times of disaster in the future or eventually pay for your child’s college tuition. Investing can be confusing and risky. Ask your bank broker, research tips for beginners, read a book and join ETrade. Choose to include investments into your monthly budget, even if it’s only $100 per month. Try these apps to begin small investing mobile applications like Stash
Failing to Accrue Interest : Sally Mae charges us interest for the large purchases that we need to make, including school loans, car loans, and home owner loans. When you give your money to banks, you are giving them permission to loan out your money to others. You are also giving them permission to charge others interest on the money that you are loaning to them. This is why it is important to place your funds into accounts that give you interest as a thank you.