10 Financial Choices You’ll Regret in a Decade
We all make decisions that we regret, but a bad financial decision can haunt us for years. You might feel too young to start thinking about retirement, or want to splurge on a fancy new car – but how will your finances look in ten years’ time? Change your spending habits now to secure your finances in the future.
1. Starting Your Budget Way Too Young
Nobody really likes budgeting, but you should know that it’s an incredibly important thing to do. Instead of thinking of budgeting as not being able to spend your money on things you want, use it to recognize areas that you are wasting money on. By having a budget, you can save for your future and break out of the paycheck to paycheck cycle that you might find yourself in.
2. Not Paying Off Credit Cards Every Month
This is something a lot of Americans struggle with. Debts start racking up, you pay the minimum monthly amount to keep the interest at bay – but that’s all. Before your credit rating drops you need to remedy any damage.
First, stop using your credit card for money that you don’t have. If you can’t pay off your balance, it’s an extremely vicious cycle. If you don’t have access to a cash supply that can pay back your debts, transfer the balances to a 0% APR credit card so it’ll be safe from interest. Then, start to pay off as much as you can each month.
3. Blindly Buying a Financial Product without Investigating First
This might sound surprising, but many investors have invested a large chunk of their savings into investments that they couldn’t explain to a friend or neighbor. If you’re planning to take a risk on your money, do as much research as possible and understand how the investment you are interested in works.
Ask yourself, how much is it going to cost? Are there any surrender charges? You need to know the answer to these questions for before making any financial decisions. If you need a second opinion, ask a financial advisor that you trust.
