I’m a Financial Advisor: These Are the Worst Money Mistakes I See People Make

Heather Taylor   Wed, May 17, 2023

Throughout the course of their careers, financial advisors see many people make a lot of money mistakes. Some of these mistakes, unfortunately, are repeatedly made over and over again. If they continue to make the same money mistakes, it can have a significant impact on their financial health in the short- and long-term.

Which money mistakes are among the most common? GOBankingRates spoke to several financial advisors who shared the worst money mistakes they see people make.

Spending Money They Don’t Have

Let’s start with a money mistake many people make on a repeated basis: spending even though they don’t have any money.

John J. Chichester, Jr. — CFP and founder and CEO of Chichester Financial Group, said rather than plan and save money for future goods, services or trips, people often run up credit card bills for things they decide they need or want right now. As a result, they end up in debt trying to live a lifestyle they cannot afford. While it does require some sacrifice, the more satisfying approach is to make a plan and budget for future purchases.

Carrying and Increasing Bad Debt

A big money mistake Jamilah N. McCluney, financial specialist at Black Wealth Financial, sees people making is carrying and increasing bad debt.

Debt comes in two forms: bad and good. Bad debt is credit cards and personal loans with high interest rates. McCluney said high interest can make it especially difficult to get out of debt and ultimately delays the process of building wealth.

The solution, for those who carry bad debt, is to create a plan to quickly, completely and permanently eliminate it. McCluney recommends using a few strategic approaches like delaying immediate impulse spending and creating a realistic shopping fund.

Pulling Money Out of the Stock Market

To continue reading, please go to the original article here:

https://finance.yahoo.com/news/m-financial-advisor-worst-money-110017721.html