No one is perfect, and that’s ok! This is especially true when dealing with personal finances. We all make financial mistakes, but you can correct them and even avoid them. Are you falling into any of these traps? If so, don’t fret. South Suburban Currency Exchange can help you identify and avoid them.
Mum’s the Word
It’s no secret that talking about money can be difficult. Whether it’s with a spouse, family member, friend, or employer, people tend to walk on eggshells when it comes to finances. Unfortunately, ignoring your financial obligations won’t make them go away. This is especially true for engaged couples, who can spend more time planning the wedding than planning their finances. Here’s a checklist courtesy of Edward Jones to help you tackle those hard-to-touch money topics.
Living Outside of Your Means
Do you spend frivolously? Perhaps you pick up a drink from Starbucks every other day or order delivery a few nights a week. These might not seem like large purchases, but they certainly add up over time. If you are struggling with money and coming up short on monthly bills, consider cutting these small expenses. A $5 latte every other day might seem minimal but three lattes a week is $15 less in your wallet. That can add up to $60 every month! What would you do with $60 a month? You might want to put it towards your emergency fund.
No Emergency Fund
Do you have an emergency fund? An emergency fund is for, well, emergencies! Don’t rely on a credit card to have your back in case of a financial emergency. You should have three to six months of expenses saved in an easily accessible place. No, we don’t mean under your mattress. Start by opening a savings account specifically for your emergency fund and contribute a small amount every paycheck. Remember how small expenses can add up over time? Small contributions can add up as well! Make it a habit of adding to this fund and you’ll have a comfortable financial cushion in no time.
You Aren’t Saving for Retirement
Time moves fast. Depending on your age, retirement might seem like a distant possibility. However, it will be here before you know it. Take care of yourself and start saving now! It’s not as hard or daunting as you might think. Talk to your employer. Many companies offer 401(k) matching programs, meaning more money that you can use for later. Always try to contribute the highest amount your employer will match to make the most out of your retirement plan. Feeling inspired? Visit your closest South Suburban Currency Exchange to get yourself back on the right financial track.