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Financial Planning Wealth Creation

3 Common Money Management Mistakes to Avoid

Money management continues to be something many individuals struggle with. They believe a pay raise or a new job with better pay will solve their problems, yet this isn’t where the issue lies.

Common Money Management Mistakes plague individuals at every income level, as they don’t know where their money goes or how best to save for retirement. Following are some common mistakes you need to avoid.

Failing To Invest

Many individuals feel they don’t have enough money to invest. Every person needs to be putting money aside, even if it is only a small amount every month.

When it comes to wealth building strategies, this tops the list, as it allows you to earn passive income in addition to your regular pay. Find a way to put money into an investment fund every month.

Not Tracking Spending

When it comes to personal finance, one thing many people overlook is their spending habits. They assume they know where their money goes when, in fact, they truly have no idea. Purchase a notebook and start writing down where every penny goes.

Go back through your last three months of bank statements and see where you spend the most. The large majority of people will be surprised to see where they are actually spending their paycheck, as it isn’t in the places they thought.

Not Planning For The Future

Financial planning involves more than investing. What will you do if you become disabled and need extra income coming in? How will you pay for long-term care for a loved one in need?

If financial planning is something that scares you or you feel you need help, don’t hesitate to turn to a professional. He or she will help you determine all eventualities and plan accordingly.

Create a budget and stick to it. Pay extra on your credit cards each month, and try to avoid new debt. This means impulse buys will need to be avoided, and this may require you carry cash as opposed to a credit card.

Know where the money goes and you’ll find it is much easier to manage it. The sooner you become financially savvy, the sooner you can begin to build wealth and have some peace of mind.

 

Paul Baggetta is the Founder & Principal of Baggetta & Co. Paul Baggetta has been a Taxation Accountant for over 36 years, a Financial Planner for over 18 years and in 1993 qualified as a Real Estate Licensee, holding a Triennial Certificate (currently not trading), and operated his own Real Estate business for property investment clients for over 5 years as a second business.

 Financial planning services provided by Paul Baggetta as an Authorised Representative (No. 261469) of Capstone Financial Planning Pty Ltd. ABN 24 093 733 969. Australian Financial Services License No. 223135. 

Taxation & Accounting services provided by Paul Baggetta as a Registered Tax Agent (No.61487008) and is a Member of SMSF Association, IPA & NTAA.

Disclaimer

The material and contents provided in this publication are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained.

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The information provided on this website, including the material and contents provided in the website publications, are informative in nature only and you should not act specifically on the basis of this information alone. It should not be used as a substitute for legal, business, accounting, tax, financial planning or other professional advice. If expert assistance is required, professional advice should be obtained.

Paul Baggetta is the Founder & Principal of Baggetta & Co. Paul Baggetta has been a Taxation Accountant since 1981, a Financial Planner since 1998, and in 1993 qualified as a Real Estate Licensee, holding a Triennial Certificate (currently not trading) and operated his own Real Estate business for property investment clients for over 5 years as a second business.

Financial planning services are provided by Paul Baggetta as an Authorised Representative (No. 261469) of Capstone Financial Planning Pty Ltd. ABN 24 093 733 969. Australian Financial Services License No. 223135.

 

Taxation & Accounting services are provided by Paul Baggetta as a Registered Tax Agent (No.61487008) and is a Member of SMSF Association, FIPA & NTAA.