3 Financial Mistakes You Must Avoid
There are three major money issues you want to carefully consider in today’s economy. The first one, you should always think twice when someone says, ” trust me” with your money. Always do your due diligence when it comes to working with a financial adviser or taking financial advice from someone you’re you’re not familiar with. The second issue, is planning and saving for a college education. The third one is, if and when to buy a house.
A financial adviser should be a licensed certified financial planner (CFP). A financial planner advises their client on the best way to save, invest, and grow their money. Some planners will charge you a set fee for the plan for you to implement, others will guide you through the process. If you want to check the qualifications of a planner go to National Association of Personal Financial Advisors (NAPFA).
There are many factors to consider before you go to college: stay home or go away; state university, local or private; career plans; and of course finances. Should you take loans, financial aid or pay as you go. Parents would start saving for college as soon as possible, in a 529 college savings fund. Students should apply for scholarships and federal funds. Carefully plan your career goals.
What you should know before you buy a house. With interest rates so low and rents so high, it may make sense to buy a house instead of rent. But, before you buy there are a few things you should know before you make your final decision. How long do you plan to live in this house? The longer the better. Do you have a secure job and will it affect where you live in the future. Compare homes and make sure that you buy something within your means.
Suze Orman gives a clearer account of these and other financial issues you should carefully consider in an Oprah money issue.
Bad financial information doesn’t come only from scammers; even our loved ones can unwittingly steer us wrong. That’s why knowing what not to do with your money is often your biggest asset. In general, there are two little words that should set off everybody’s suspicion meter: Trust me. Anyone who gives you this line—whether a financial adviser or your significant other—is disrespecting you. You should never entrust a money decision entirely to someone else. I know, I know: Sometimes you’d rather pass the buck. But remember, we’re talking about your security, your future, your peace of mind. It’s one thing to hire an investment adviser to help you choose funds for your IRA, or to cheerlead a spouse as he or she sets up a 529 plan to help pay your child’s college tuition. It’s quite another to tune out completely.Find an hour or so a month to peruse a personal finance Web site or a magazine like Money or Kiplinger’s, which will keep you up-to-date on the basics. The blog at Mint.com is also a great resource, with posts on everything from choosing a mortgage to spotting medical bill errors. By educating yourself in these simple ways, you’ll sidestep all sorts of traps. Here’s some common advice you should disregard—and more profitable leads to follow instead.
There are many ways to save money on financial planners, college savings and buying a house. These are major money issues that should be researched, planned and thought out carefully before you venture into them.
Do you have a plan B?
A way to make residual monthly income?
Click Here to discover a way to pay for college, a home or retirement.