Making decisions around your finances can be overwhelming, with countless ways to make mistakes along the way. But what are the most common and costly money errors you should avoid?
In this episode, Modearn™ advisors Patrice Bening and Beau Wirick open up about their personal experiences and reveal the three biggest financial missteps they wish they'd never made—so you can learn from their past and steer clear of these pitfalls yourself.
Here are some key takeaways:
- Not having a spending strategy: It's easy to spend unintentionally when you don't have a plan. Many of us overspend on short-term gratification and end up missing opportunities that could've changed our lives in considerably significant ways. Create a realistic spending strategy that gives purpose to your money and aligns with your long-term goals and values.
- Not using credit wisely: Many of us are afraid of debt because no one told us it can be a huge leverage! Using debt strategically (like taking a mortgage on a rental property) can enhance investment returns compared to buying with cash, thanks to tax deductions.
- Not paying yourself first: Did you know that investing $5,000 annually for 40 years amounts to $1 million, but investing the same amount for 30 years, just 10 years less, compounds to only $500,000? Time is your best friend - prioritize investing now. Instead of saving what's left after spending, spend what's left after saving and investing.
