Financial mistakes to avoid.
Avoid these financial mistakes
Spending too much
Spending beyond your means can have serious consequences for your future finances and lifestyle.
When you can't say no to the temptation to spend for that instant hit of consumer satisfaction, you're really going to struggle to build the strong financial foundations you need for a successful life.
Living life without a safety net
If the unexpected happens and you don't have savings, insurance or a generous family member to help out, you may end up taking on expensive personal debt just to cover your living expenses. With a decent savings balance, you can keep paying your bills without loading up your credit card.
Making decisions based on emotions
Unfortunately, following the herd or making investment choices based on what's comfortable and familiar rarely brings the best results. Professional advice from a qualified financial planner is a good way to make sound choices that will help you build wealth in the long run instead of jumping on the latest hot tip and regretting it later.
The perils of property
In recent times, property values in many parts of Australia have been rising fast, leading many to see their property as a personal goldmine. By investing more in your home -- through upgrades and renovations -- you could end up missing out on chances to get better returns from your money elsewhere.
Adapted from the Financial Planning Association of Australia’s Money & Life eBook and reproduced with permission. Please also read the RACQ Band disclaimer below.
RACQ Financial Planning Pty Ltd is a Corporate Authorised Representative (Representative No. 293929) of Actuate Alliance Services Pty Ltd, AFSL 240959, ABN 40 083 233 925 (Actuate). Actuate is a wholly owned subsidiary of IOOF Holdings Limited ABN 49 100 103 722. This document contains general advice and/or information prepared without taking into account any persons’ investment objectives, financial situation or needs. Investors should consider whether any general advice is appropriate having regard to their financial objectives, situation or needs.