Do You Make These 22 Mistakes With Your Personal Finances?

If you are worried about your financial future, you do have reasons to be concern. There are people in this world who put in over 20 years of working for someone else and cannot write a check for $5000 when they retire. You have been plague with high interest rates, consumer debt, credit cards, adjustable and interest only mortgage loans without any thoughts for the future.

I have outline 21 mistakes we make that is bringing disaster to our finances and our future. Look at the list below, if you fall into one of these situation, seek help now to fix it. Some of these mistake you can fix yourself, others you may need the help of a financial professional.

Mistake 1. Cash advances from your credit cards to pay bills and making just the minimum payment every month.

Mistake 2. Paying your bills after the due date, accumulating late fees. Your creditors loves you for this. It increases their yield.

Mistake 3. Refinancing your home to consolidate your debt just to find yourself back in debt again.

Mistake 4. Borrowing against your tax refund in the form of a (RAL) Rapid Refund Loan. This is highway robbery.

Mistake 5. Borrowing from your credit cards to pay another.

Mistake 6. You frequently borrow from friends and family, swearing you will pay them back and never do. You might be closing this door forever.

Mistake 7. You are one pay check away from being broke or homeless.

Mistake 8. Suffering from the something for nothing disease. You want to benefit without putting anything in.

Mistake 9. Taking disposals income spending it frivolously, playing the lottery or gambling, instead of investing it.

Mistake 10. Married couple working, both qualify to purchase more house, one lost a job or got sick, no savings and now both are facing foreclosure and contemplating bankruptcy.

Mistake 11. Not having a savings at all and writing bounce checks.

Mistake 12. Involved in get rich quick scheme. Giving money to investors without conducting a back ground check on the individual or company.

Mistake 13. Never establishing an emergency fund.

Mistake 14. You consolidate your bills into one payment and go out to apply for more credit.

Mistake 15. Not reviewing your credit report every six to twelve months.

Mistake 16. You frequently pawn your jewelry, DVD‘s, electronics, car title and use those payday advance loans.

Mistake 17. Not having a financial plan or speaking to a financial advisor.

Mistake 18. No tax planning to maximize tax deductions

Mistake 19. Not trying to increase your knowledge base to increase your wealth.

Mistake 20. No life insurance planning or protection (life, health, auto, home and disability)

Mistake 21. Not starting your business that you been thinking about for years.

Mistake 22. Having a negative attitude and being around negative people.

Now that I have outline these mistakes to you, make a plan within the next 30 days to see how you will correct them. Do not allow your personal finances to explode to a point that you could lose everything you have.

Copyright 2007, Bobby Johnson - All rights reserved

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