When you’re newly married, you’ll probably face some new challenges and might not feel that you’re ready for these new responsibilities. A lot of young couples don’t anticipate how different managing their finances can be once they get married. It’s important to understand how merging your finances will impact the way you spend and manage money. There are common mistakes most couples make, and you can avoid some difficulties by being aware of these errors. These are the five most common money mistakes young couples make:
Understand purchasing power. Purchasing power refers to your ability to buy items such as necessities and luxuries. One of the main issues with inflation is that your purchasing power goes down as inflation goes up. For example, your $1 could buy an item yesterday, but today you’ll need $5 to buy the same item. Unfortunately, interest rates and incomes can’t always keep up with inflation.
They lack financial responsibility. Helicopter parents often have children who are financially irresponsible. They struggle with responsibility and turn to their parents to save them. Do you rescue your children from every financial mistake they make? Parents who act as financial saviors are actually hurting their children’s ability to learn from their mistakes and make more beneficial decisions in the future. Children can become too dependent on their parents and refuse to grow up.
Expecting your first child is a very exciting event and the financial aspect of raising a child is probably not the only thing you have on your mind. However, having a child means you’ll soon have some new responsibilities, including preparing for your new arrival from a financial point of view.
Credit card companies used to market aggressively to college students. Laws now prohibit this type of activity, but getting a credit card is important for college students. Sooner or later, you’ll want to purchase an automobile or home, and you’ll either have to use credit or save for a very long time. However, using a credit card irresponsibly can create a huge financial challenge.
Do you have a favorite hobby that takes up a great deal of your time and money? Hobbies can be fun activities, but they can also have a negative impact on your finances. If your hobby is starting to hurt your finances, then it’s time to reevaluate it: Consider the time you spend on the hobby. How much time do you dedicate to your favorite hobby every week? Do you spend at least several hours on the hobby every day? Hobbies can be fun distractions and can help you explore new ideas. However, hobbies that take up too much of your time can be dangerous. They can affect your job, family, friends, and finances.
If you aren’t lucky enough to inherit a million dollars, you’ll have to create wealth on your own. Relatively few millionaires inherit their wealth, so you’re in good company. Most millionaires didn’t become wealthy by doing anything spectacular. They simply have a useful set of habits that they stick to religiously. Start on the path to becoming a self-made millionaire: Deal with uncertainty. Most millionaires don’t have a “regular job” and are forced to deal with more uncertainty than average income earners. Be comfortable with uncertainty. Pay yourself before you pay your bills. Save at least 10% of your paycheck before you sit down and pay your bills. If you pay yourself first, you’ll adjust your spending to accommodate your bills. If you pay your bills first, you’ll spend the remainder and save nothing. Save your money before you have a chance to spend it.
Are you planning the purchase of your first home? Buying a house is a major decision because the house will soon become one of your main financial assets. Plus, you’ll be making mortgage payments for at least ten years. Take these steps before you buy: Ask yourself if you’re financially stable. Have you had your job for at least five years? Do you have a reliable income? Are you ready to make monthly mortgage payments for at least ten years? Are there any other major expenses in the near future that would make keeping up with your mortgage payments difficult? Do you plan to stay in this house for at least five years? The first five years of mortgage payments usually only cover fees and interest. Are you ready to settle down in one spot?
Business dinners can be an expensive way to have […]
This month, our featured employees of the month are our intern staff. Here at Karla Dennis and Associates, Inc. we strive to give our interns the hands-on experience needed to excel in their careers. Karla Dennis and Associates, Inc. has 5 interns this semester; Nathan, Brianna, and Anthony,