Whether you are making the wrong money moves or you know you are but continue to put off, you are hurting yourself in the long run when it means going into debt and taking away from retirement. Even though it may be decades away, the earlier you start saving, the more your funds will be able to grow over time, and by the time you walk away from work you don’t want to be in a mountain of debt. If you can stop ways you could be going broke now, it can really save you in the future.
Putting Everything on a Credit Card
Using a credit card for every purchase can actually be financially smart due to the fact that credit cards can come with fraud protection as well as have really great rewards. By using the card for purchases that you would be making anyways, you could be earning points, airline miles, or even a check back every year. The only problem with that, is with a credit card you have virtually no stopping you when it comes to making purchases, except for the credit limit, which depending on how high that is, you could be in real trouble if you hit that. If you are unable to pay the statement balance by the due date, that’s when the interest kicks in.
Trying to Keep Up
We all make different amounts of money, have expenses that don’t add up the same, so when it comes to spending, you shouldn’t try to go dollar for dollar. Take the bar for instance, if you are trading off rounds of drinks, throwing shots in there, could really throw off a budget for someone who doesn’t make as much as the one with no trouble ordering and paying. When it comes to finances, you need to spend what you can afford, otherwise you could be in real financial trouble down the road, if you aren’t already.
Not Seeking Advice
As much as we think we do, we don’t have all the answers, and there is always someone more knowledgeable than us, so if you have someone in your inner circle, whether it’s a family member or friend that you can trust, that has been successful with money in all areas, why not seek out their advice. Whether it’s spending, saving, investing, it’s worth a listen if it will save you in the end, say if the money moves you are making now are setting you back from retirement.
Living Beyond Your Means
Speaking of ways that could be setting you back from retirement is living beyond your means. Whether that is making purchases that you cannot afford, living in a house that has a mortgage payment that takes away most of your paychecks, or a car that, with insurance, could be a mortgage payment, you may be living beyond your means and taking away money that could be best used elsewhere, such as paying off debt or saving for the future, both extremely important if you are trying to get ahead.