Money Talks News: Money mistakes everybody makes - News, Weather, Sports, Toledo, OH

Money Talks News: Money mistakes everybody makes

(Source: Money Talks News) (Source: Money Talks News)
Money Talks News -

Everybody makes mistakes, but when it comes to money, the fewer bad moves, the better. 

Keeping money mistakes to a minimum are essential, but paying five dollars for a cup of coffee is not something you should worry too much about.

Instead, here are some examples of money mistakes and what you should be doing instead.

Mistake number one: Paying 20 percent on a credit card when you are earning .2 on your savings. Better idea: If your job is secure and you do not need the cash immediately, use low-interest savings to pay off that high-interest debt.

Mistake number two: Buying stuff new when used would do suffice. For example, paying $20,000 for a new car when you could have purchased a used one for $10,000. Save that money! Invest $10,000 for 10 years at 10 percent, and it will grow to $25,000.

Not to smart move number three? Not participating in your company's 401k or other retirement plan, especially if they are giving you matching money. It is never smart to turn down free money or a nice tax deduction.

Another not so smart move? Borrowing to buy things that go down in value. Borrowing for a house is one thing, as it might go up in value later. However, borrowing for clothes, cars or anything else that goes down is not the path to riches.

Final idea: Overspending to get rewards. Sure, it is tempting to try and rack up a bunch of frequent flier miles, but if you cannot pay that credit card off every month, you should not be trying.

We all make money mistakes, and there is certainly nothing wrong with that, especially when we learn from them.

However, there are other mistakes you need to be on the lookout for. There are more examples of money mistakes, and ways to fix those mistakes, available at the Money Talks News website. Just do a search for "dumb money moves." 

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