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How To Go Broke

Published on April 11, 2024

Avoid these mistakes when managing your finances.

You only live once, but living hand-to-mouth isn’t anyone’s idea of a dream life. So, what’s behind America’s obsession with living for the present and risking a financial nightmare?

 Oh, the struggle of separating our wants from our needs! Our brains can easily pull the wool over our eyes, blurring the lines between what we crave and what we must have. And let’s face it, with the constant bombardment of ads pressuring us to keep up with the Joneses, our impulse control can go out the window, leaving us buried under a mountain of unnecessary expenses.

Battling money struggles is no easy feat, but it all starts with getting to the root of the problem. Pondering over things like impulsive spending sprees, mixing up must-haves with nice-to-haves, shoddy financial planning, and insufficient savings can send your finances into a tailspin. Tackling these tendencies head-on can be the first step towards taking charge of your financial future. If you’re aiming to break the cycle of never-ending money troubles, steer clear of these financial faux pas:

1.Ditching the budget is a no-go

Reality check – if you’re clueless about where the cash flows, it’s a risky move. Even if you’re not exactly raking in the dough, a budget is a must-have. And if you’ve got big plans on the horizon, like a cozy new home or a shiny car, then it’s crucial to craft a solid plan on paper. Then, keep tabs on yourself each month to make sure your finances are on track.

  1. Paying Credit Card minimums

Are you stuck in the minimum payment cycle? Brace yourself, friend, that road leads to a long, long journey. But, fear not! A tiny boost in your monthly payment can save you a bundle.

  1. No Savings

Urgent situations have a knack for popping up at the most inopportune times, and they can really take a toll on your wallet. But when you have a stash of rainy-day cash, even if it’s just a little, not only can you dodge those yucky credit card fees, but you can also breathe a little easier knowing you’ve got things under control.

  1. Not Preparing for Retirement

Picture yourself retired, chilling on a beach with a cocktail in hand. Pretty sweet, right? But hold up! Have you actually planned for this magical moment? To make your retirement dreams a reality, start saving now. Every penny counts, and even the smallest contributions can add up over time. Plus, if your employer is offering a match or catch-up contributions, don’t leave that free money on the table. Trust us, future you will thank you.

  1. Low Credit Score

If your credit score is below 600, it’s time to take action because that lousy credit rating is a money-munching monster. You’ll get slapped with higher mortgage rates, steeper credit card interest, and even pricier insurance. Tackling a bad credit score needs patience and commitment, but it’s doable.

  1. Maintaining Pricey Habits

Your pricey latte addiction, smokes, and restaurant binges might be putting the squeeze on your bank account. We’ve all been guilty of splurging, when we know we shouldn’t. But when “one-time” turns into a habit we begin to drastically overspend. What’s the solution? That pesky budget mentioned in #1.

  1. Not Consulting with a Financial Professional

Leave it to the pros! A financial advisor is the secret weapon to unlocking the full potential of your retirement. They’ll dig deep into your investments, predict your post-retirement income, and toss out some game-changing tips to keep your lifestyle in check so you don’t accidentally dig into your retirement well too soon.

Just like visiting a doctor for medical check-ups, it’s crucial to seek advice from financial experts when it comes to diagnosing and resolving financial troubles, rather than going solo.


Securities and investment advisory services offered through Osaic Wealth, Inc. member FINRA/SIPC. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth.

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