SeaComm Federal Credit Union OFFICIAL BLOG

Four Financial Mistakes and How to Avoid Them

While there are plenty of financial mistakes we can make, these four are common and preventable. Here are tips for avoiding these financial drawbacks…

Mistake #1: Not Planning for Retirement

The only way to make sure that you have what you need to retire is to start planning early. This is probably the most common mistake people make, and it is also the easiest one to avoid. If you start saving for retirement early, even if it’s a very small amount, you will establish the habit as well as start to build savings.

An IRA with SeaComm is a great way to build your nest egg. There are no monthly fees, no minimum balance requirements, and dividends are paid to you on a monthly basis. It’s never too late to start saving. Click here to learn more!

Mistake #2: Spending Too Much on a Car

While it may make financial sense to buy a new car, be careful not to buy more car than you need. A flashy and expensive car may be tempting, but keep your long-term goals in mind and choose a car that serves your current needs without sabotaging your savings. Click here to read our recent blog article for more car buying tips for your wallet!

Mistake #3: Not Using a Budget

There are a number of consequences of not budgeting, including less financial security, out of control spending, and a higher likelihood of going into debt. Having a budget in place can help you at any level of income, and giving every dollar a destination makes it easier to spend mindfully and cut down on unnecessary expenses. Make sure to utilize SeaComm’s digital platforms, NetTeller™ and Mobile Branch, to help track and monitor your spending from your computer or mobile device!

Mistake #4: Having No Emergency Fund

For the same reasons we tend to skip proper retirement planning, we also skip saving for emergency situations. Unplanned circumstances such as illness or job loss can happen at any time. Having a robust savings will allow you to use your financial safety net for these expenses, instead of having to borrow from credit. Your savings should be a fixed item on your monthly budget instead of something that only happens if there’s money left over. Click here to discover a variety of savings options available to you at SeaComm!

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