5 Ways to Damage Your Financial Standing

Are you really in control of your money? If you’ve fallen into any of these patterns, you could actually be hurting your financial status.

1. Having nothing saved at all. If you routinely spend everything you bring in, start easing into a saving habit with an automatic transfer or direct deposit of 5-10% of your income. It’s a great way to build up an emergency fund.
2. Paying the minimum on your credit card balance. You’ll wind up paying more in interest and taking longer to pay off your debt. For example, it would take almost 10 years to pay off a $1,000 credit card balance at 14% APR if you only paid the minimum.
3. Not having an emergency fund. Without a cash “cushion,” you’re more likely to slide into debt at the first unplanned expense – such as car repairs, medical bills or a lost job.
4. Operating without a budget. Not having a budget means you don’t know what’s going on with your money. You may not be sure how much you can really spend each week, and you probably don’t track what you do spend. Set aside 30 minutes to create a budget and reap the financial benefits.
5. Not having insurance. Without insurance, you leave yourself and your family financially vulnerable. The added security of insurance leaves you feeling more in control of your life – and it could make all the difference for yourself and your family should tragedy strike.