When we discuss retirement planning, we often focus on what to do: Save as much as you can, take advantage of this tax strategy, consider that insurance product, and so on. But it’s equally important to focus on some “don’ts” such as the following bad financial habits. If you’re practicing any of these, make an effort to break them now, and you will thank yourself in the future.
Keeping up with the Joneses. Social pressure affects all of us, and we often don’t recognize when we’re giving into it. But chances are, you are not Bill Gates. There will always be someone who has a faster car, a bigger boat, fancier jewelry or a swankier vacation. Try to set aside your drive to compete, and ask yourself what you truly want for your life. Making better financial decisions now can lead to a more comfortable retirement later. At that point, you might be the one who is the envy of the neighborhood!
Giving in to impulses. Buying things is fun, but shopping is an awfully expensive form of entertainment. Retailers understand the lucrative pull and addictive rush that some of us get from impulse purchases, and they use sneaky strategies to push us over the edge into “Debtland”. Remember that these thrills are temporary, but sound financial planning can bring you decades of enjoyment.
Neglecting to research large purchases. Speaking of impulse purchases, some of the worst ones involve big-ticket items! Right now you are using a powerful form of technology to read this blog; you can also put it to good use by researching big purchases online before you buy. Shop around, search for sales, and compare finance rates. You can save hundreds or even thousands of dollars by exercising a bit of patience.
Avoiding “the talk”. Which discussion is more uncomfortable: Teaching kids about the birds and the bees, or talking to your spouse about money? Most people say the money talk is worse! But if you don’t discuss your financial goals and priorities, you could find yourself having The Divorce Talk or The Bankruptcy Talk in the future. Yikes! Take the time to have this discussion with your spouse now, and be ready to make some compromises to pursue a more financially stable future.
Indulging in unhealthy habits. It’s okay to have a little fun sometimes. But many people spend hundreds per month on items like cigarettes, alcohol, coffee, candy, and so on. Think how much more you could save for retirement by cutting back on unnecessary indulgences. Consider, also, the future medical bills that could result from these habits!
These are just some of the bad financial habits many people practice. Set an appointment with us, and we can help you review your budget, identify areas of savings, and revamp your retirement plans to pursue a more stable future.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.