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5 Financial Pitfalls to Avoid at All Costs!

financial-pitfalls

We’ve all had to make a financial decision at one point or another. There is a big difference though between an impulse buy and a poor financial investment. This article summarizes some of the most common financial decisions and why making them is important to avoid financial regret –

1 – Saving for retirement

This is a simple one really, a lot of people wait until their 40s or 50s to start to seriously save for their retirement. Don’t! The earlier the better, you won’t regret it later in life.

2 – Spoiling the children materialistically

It may seem callous to say, but a lot of people spend their retirement savings on their children. It may be difficult to resist buying them the latest video game or mobile phone every time, but it’s not always financially the best bet. The more you can save now, the less time and money they’ll need to spend later in life accommodating you.

3 – Turning to professional advice when it’s needed

Admitting you’re in a financial struggle can be hard enough as it is, but it only gets harder without help. As soon as the situation where you’re struggling arises, you need to seek the necessary professional advice before too much long term damage is caused.

4 – Paying only the minimum on loans and/or credit cards

If you’ve taken out a loan or credit card, there’s a good chance you’re making monthly repayments within your limit. A lot of lenders offer the opportunity to pay off more than the minimum to repay the debt early. This is an extremely advantageous move, especially for longer term borrowing arrangements. Generally speaking, the quicker you can pay something off, the less interest you pay on that money, helping your finances in the long run.

5 – Avoid silly investment opportunities and ‘too-good-to-be-true-offers’

Whether it’s buying into a time share, or a friend’s business idea, unless you are 150% sure that an investment is going to pay off, don’t even consider making it. More business’s flop than flourish, it’s just a fact and failed business ideas are a large factor in people losing out on thousands of pounds. Your money is hard earned, it’s important to hold on to it unless of course you can near enough guarantee a return.