Here’s how to avoid these three big and costly financial mistakes in 2016.
Financial mistakes can take one of two forms. The first is something you notice relatively quickly and correct with little impact. The second is a mistake that can go unnoticed and can impact a budget or relationship for years. No one is perfect, and we’re all prone to mistakes. We all want to correct mistakes as soon as possible and be in the best financial position possible. Following are three such money mistakes, how costly they can be and how to reverse their course.
Leaving Someone in the Dark
Managing finances as a couple can be a challenge at times. Both individuals come from different backgrounds and have different expectations when it comes to money. It’s not surprising that a recent survey shows that 13 million Americans have accounts kept secret from their partners – otherwise known as financial infidelity. There very well may not have been sinister motives, but it can be ruinous to a relationship. (For more, see: The No.1 Reason Why Couples Fight.)
In nearly every instance communication will help bring both parties to the same page. “The biggest thing couples can do to avoid making major money mistakes is to communicate. I often recommend that clients set a time every week, away from distractions, to talk through their finances. Make a habit of talking about it,” says Aaron Hatch CFP, co-founder of Woven Capital.
As Hatch points out, set up a regular time to discuss your finances. Make it personal in order to set yourself up for success. Also, remember to share responsibilities, so each partner feels a part of the team and knows what’s going on within the bigger picture of the family’s finance. If you’re single, you can accomplish the same thing – which is regularly staying on top of your finances to ensure you’re still on track to reaching your goals. (For more, see: Top 6 Marriage-Killing Money Issues.)
Read more: 3 Big Financial Mistakes to Avoid in 2016 | Investopedia http://www.investopedia.com/articles/personal-finance/031916/3-big-financial-mistakes-avoid-2016.asp#ixzz43SUacqoc
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