#DoYouKnow: Some Money Mistakes Could Make Managing Your Investments Much More Arduous
Did you guys know that financial planning is so overwhelming that it actually makes Americans sick? Unfortunately, the latest Merrill Edge survey found that more than half of all survey respondents recording their physical and/or mental wellbeing are impacted by financial hardship.
While exhaustion on financial matters is widespread, some errors can make money management more complicated than it needs to be. It is important to avoid such mistakes if you want to reduce the negative effect of financial activities on your mental wellbeing.
- Not to have an emergency savings
When you’re residing a paycheck, money worries are likely to be at the forefront of your mind. After all, you don’t have a safety net if you have unexpected costs or a drop in revenue. An investment portfolio with many days of living expenses can give you the security of knowing that you’re prepared for whatever disappoints life sends your way.
- Take too much from the loan
When you borrow a lot of money, you take on a whole lot of financial stress. Not only do you need to worry about interest, but you also have to handle the logistics of making payments. The payments will also tie up some of your income, giving you less cash to spend on other essential purchases or to save for retirement.
- Living with no spending plan
A budget may seem to be constraining at first glance, but the reality is that it can make managing your finances a whole lot easier. When you set a budget, you’ll be able to make sure you’re doing the right things with your money. You won’t have to worry about whether you’re overspending or whether you’ll end up with enough cash to accomplish financial goals because you’ll know exactly where your dollars should be going.
- Not streamlining any of your payments or savings
When you have to pay bills manually and transferring money to investments each month, it can take time and contribute to your pressure. Unintentionally missed payments will mess up your score. And you may realize that you don’t have the cash to do whatever you want or need to do, such as keeping to your debt payment schedule or covering your bill every month in full.
Automation of your expenses and pension accounts will eliminate a lot of these issues. Once you have set a budget, you can know how much money is free to use for different purposes, and you can simplify the transfer of funds to get the cash where it has to go. This can make a profit largely hand-off, and you’ll need to do very little, but periodically review your accounts to make sure all your payouts and payments have gone through as scheduled.
Unless you can stop such pitfalls, then handling your finances will be simpler for you, and it won’t be a huge source of anxiety for several Americans. Although it may seem difficult to save for emergency situations, avoid debt, and live on an expenditure that allows you to streamline savings, it’s much easier than ever to worry as to whether you handle your financial situation responsibly.
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