Do you ever look at your bank balance sometimes and think, “Where the heck did all of my money go this month?!” Ha ha! Believe me…been there…said that…more than I’d like to admit. Today I’m going to show you 4 costly mistakes that we make and simple ways to fix them. Timeless financial literacy tips like these can help you no matter where you are in life!
Mistake #1 Filet Mignon Tastes / Ramen Noodle Budget
It’s really easy to get carried away here, isn’t it? If you eat out a lot, or have expensive tastes when it comes to food, that can put a huge drain on your bank account! I remember when I made my first budget years ago, and figured up what I was spending eating out and it nearly blew me away! Solution: First, obviously, limit your meals out. I cut back to going out to eat once a week and there’s nothing to miss! Also, if you eat out less with your significant other, you might find that you look forward to it a little more, and it becomes more special. Next: Prepare your lunches for the week in advance. That way, you’re less tempted to run out and grab something quick. Bringing your lunch is cheaper, and healthier! A $7 rotisserie chicken can feed you for 2-3 days at lunchtime. Sign me up! Finally, consider a membership at a bulk store. I can’t tell you how much I’ve saved buying items in bulk that I’d be buying anyway at the supermarket. Follow these guidelines and you’ll start to see big savings on food costs! I’ve been preaching simple financial literacy like this for years, and I can show you some real numbers and math from an article I wrote years ago about bringing lunch vs. buying it. Check it out here if you have time!
Mistake #2 No Savings
It may seem obvious that everyone needs extra savings or an “emergency fund”, but did you know that you could end up paying extra if you don’t have a stash to dip into? Think about it. If you can’t pay for something in full, you are forced to finance through a finance company or a credit card. You have to pay interest on top of the original purchase price too, which means you’re paying more than what’s on the price tag…that’s bad! Especially if it’s a real emergency! Solution: If you do not have a savings built up, make that your top priority. It’ll keep you out of trouble! Forget investing, forget retirement plans, savings MUST come first. It’s a big deal! This is a core value to sound financial literacy and financial wellness. Without a savings, you have no business investing. There, I said it! I personally recommend three months worth of bills as a base savings, but that’s just my personal take. If you’d feel better with more, that’s ok but three months should be your minimum!
Stay tuned for Mistakes #3 and #4, or just click here to watch the full version on video!
If you’d like to schedule a free consultation or find out if you’re on the right track financially, click the scheduling link in the video or visit kyledavisfinancial.com and click the “Schedule Now” button in the menu! I’m available face-to-face, through video chat, or over the phone. Join me on social media and be sure to leave questions and comments! See ya soon!
Kyle A. Davis is a financial advisor and president of Integrity American Group, LLC. He is a Florida native and an advocate for financial literacy and practical money education. When not assisting clients in retirement planning, he creates educational videos on financial wellness and offers free resources on his personal finance website www.kyledavisfinancial.com!