There are certain patterns or money mistakes that Perth financial planners see on a regular basis. Once we have put them on a program, those mistakes usually don’t occur as often as they used to. Remember that all financial suggestions here are general in nature and that we can’t specifically give advice to anyone’s individual financial situation without a consultation.
Settling for What You Get
This is in reference to bills and premiums. Many companies give new customers great deals but won’t extend the same courtesy to their current customers. They are counting on you to stay put and not complain. Meanwhile, it is possible to save thousands just by changing the mortgage on your home. It pays to shop around.*
Spending More Than You Earn
Credit cards make it too easy to spend money you don’t have, putting yourself in debt and paying high credit card interest rates. This is a very common malady.*
Having No Emergency Fund
It is wise to have at least three months’ worth of expenses saved up in an emergency fund. It is better to have six months’ expenses. A lot of Australians are still living week to week, leaving them vulnerable if they can’t earn money for even a month. *
Not Being on the Same Page
If one spouse is fiscally responsible and the other undermines it with irresponsible behaviour, it negates what the responsible spouse is trying to accomplish. Teamwork is everything here.*
Not Realising the Consequences of Lender Offers
With some lenders, even the most “generous” offer can have a “dark side.” If you are ahead on your mortgage, the lender may offer you lower payments. This sounds great, but they are doing it so they can charge you more interest and make up the money you were able to save. *
Going It Alone
In today’s economy, it can be difficult to “go it alone” instead of hiring a professional financial advisor. Call our Perth office today: 08 6462 0888.
*Sydney Morning Herald. 15 September, 2013, “The Ten Biggest Money Mistakes.”