As you continue to grow financially, you may begin to realize just how much there is to learn about budgeting, saving, debt, investments, and retirement. At certain stages of life, a person is working on each of those pieces differently. As you make money moves, mishaps are bound to happen, which is why Banterra Bank wants to offer some suggestions on common money mistakes to avoid.
Unnecessary Spending
Believe it or not, a few cups of coffee each week or that takeout you get when you don’t want to cook adds up. Just $15 in coffee each week adds up over the course of a year. If you purchased three $5 cups of coffee each week, that totals $780 in just one year. That becomes quite a sum of money over time. If you add on takeout and other similar expenses, you are easily spending thousands of dollars every year that you could be saving or investing. It is always good to support local small business, but also consider managing some of these expenses so that you can better save or invest.
Multiple Loans And Debts
You will have student loans, a mortgage or rent and, most likely, a car payment as well. However, when you add in an additional car payment, credit card debt and other payments, you can start to go under quickly. Living on borrowed money can get out of hand easily, so it’s extremely important to calculate how much money you need to pay your debts each month. Do not forget to account for the other monthly costs such as groceries, utilities, gas, and savings. This will help you see if you can even afford anything else or where you need to cut back quickly before going under. Banterra’s Digital Banking has a great budgeting tool and the Banterra Mobile App makes it even easier to track and manage your expenses.
More House Than You Can Afford
This is a very common mistake that happens all too often. Even though you love the home, you won’t love the monthly mortgage payment after a few years. It is crucial to scope out your budget prior to making such a major commitment. This will help you understand what you truly can afford to continue living comfortably, as well as consider how your lifestyle will change over the years.
Missing Out On Retirement Funds
Only contributing 4% to your 401k may not go very far in the multiple years you have to live once you are retired. You should strive to contribute the maximum amount that your company allows and that you can manage with your budget. Are you planning on having a vacation home, traveling, or taking care of medical expenses? This increases the amount of money you will need to live comfortably in retirement. Be sure to have other options in line and look into other accounts such as an Individual Retirement Account (IRA).
Not Consulting Professionals
Working with a professional to figure out how much money you should be saving, investing, and/or putting away for retirement and spending is important. A big mistake individuals make is not consulting a professional on financial planning matters. Our Wealth Management team is here to help you plan for retirement and help you to avoid these common money mistakes.
Budgeting Financial Education General
February 7, 2022 by Banterra Bank
By clicking the links above, you are now leaving Banterra Bank's website and are going to a website that is not operated by the bank. Banterra Bank is not responsible for the content; availability of linked sites; does not endorse or guarantee the products, information, or recommendations; and is not liable for any failure of products or services provided by the linked website. Please be advised that Banterra Bank does not represent either the third party or you, the customer, if you enter into a transaction. Further, the privacy policy of this site owner may be different than that of the bank and this site may provide less security than the bank's website. We encourage you to read the privacy policies of websites reached through the use of links from the Banterra Bank website.
