Armchair Millionaire Community Bulletin: Fabulous Fixes for Bad Behaviors
Who hasn’t made financial decisions that they’ve later regretted? We all make mistakes now and then. The good news is that there’s a way to set nearly every misstep right again.
New York, New York (PRWEB) October 26, 2005
You’re human, which means you’ve made mistakes. And chances are very good that at least some of those mistakes involved money.
Members of the Armchair Millionaire community are no exception. They recently shared some of their financial regrets:
“When I got an inheritance I thought I knew it all. Paying a CPA to do my taxes would have saved me thousands of dollars.” --is24
“Using my credit card to maintain my lifestyle when my commissions were low, instead of drastically cutting back. I was $1,000 away from being free of credit card debt. Now I owe more than 10 times that just from utilizing that card for one year while subsidizing my cost of living!” --Teej
“Investing in individual stocks instead of index funds. I lost several thousand dollars during the dot com bust in 2000 and 2001. If I had invested regularly in a couple of index funds instead, I would be way ahead of where I am now.” --Brett
You’ll never be able to navigate your financial life without mis-stepping now and then. But you can correct the worst financial mistakes that do the most harm to your long-term economic health. My guide shows you how.
The Armchair Millionaire’s Guide to Fixing the Most Common Financial Mistakes
Failing to start investing. The longer you wait to start investing for the future, the more you’ll have to save, and the less you’ll end up with down the road. What goes wrong: You feel like you’ll be young forever, so investing can wait for later. Or, you’re not sure how to invest, so you do nothing. How to set it right: Start investing today. The easiest way is through your employer’s retirement plan. Go see the folks in your human resources department and sign up for your company’s 401(k). And if your company doesn’t offer a 401(k), don’t use that as an excuse. Any brokerage or mutual fund company will be happy to help you set up an Individual Retirement Account (IRA).
Living on borrowed money. Nothing is easier--or more foolhardy--than living beyond your means by plunking down plastic. What goes wrong: You’re a little tight on cash, so you start charging everyday items. How to set it right: Put away those credit cards now. If you want to buy something, save for it. Then focus on paying down your highest-interest credit cards first.
Staying too safe with your money. Nothing ventured, nothing gained. In order to realize investment gains over time, you must be willing to see some short-term downturns. What goes wrong: You put your money only in “safe” investments--CDs, money market funds and the like. As a result, your investments barely keep up with inflation, never mind providing you with a decent return. How to set it right: Set your fears aside and set up an investment asset allocation that makes sense for your goals and time frame--and then stick with it. If in doubt, see a qualified financial planner.
Buying too much house. Ah, here’s the kicker, and one that’s all too common these days: buying a house that you can’t really afford. What goes wrong: The low monthly payments of an interest-only mortgage look just too good to pass up. But when those interest payments finally start to come due, you find yourself in over your head. How to set it right: When it makes sense, refinance to a fixed-rate mortgage. In the future, never take out a mortgage without being confident that you’ll be able to afford the highest possible payment.
Not having a will. Should you die unexpectedly, do you really want the state to decide where your money goes? What goes wrong: You’d really rather not think about dying, so it’s easy to put off getting your will made. How to set it right: Schedule an appointment with a lawyer today (get a reference from a friend, or just look in the phone book under “attorneys”). Most people can expect to pay less than $500.
THE BOTTOM LINE: Who hasn’t made financial decisions that they’ve later regretted? We all make mistakes now and then. The good news is that there’s a way to set nearly every misstep right again.
THE ARMCHAIR MILLIONAIRE WEEKLY SURVEY: When it comes to buying a used car, how do you avoid getting taken for a ride? Log on to www. armchairmillionaire. com and let us know.
Lewis Schiff founded the Armchair Millionaire Web site in 1997. His first book, The Armchair Millionaire, was published in 2001. Schiff's newest report, "How to Know When You Are Rich," is now available at www. armchairmillionaire. com.
CONTACT INFORMATION:
Lewis Schiff
Armchair Millionaire
877-833-2823
Http://www. armchairmillionaire. com (http://www. armchairmillionaire. com)
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