Four Typical Financial Mistakes
Our journey toward building wealth and seeking financial independence begins when we accept a simple truth: we are responsible for our beliefs and our financial condition. Even when outside events have contributed to our current challenges, it is still up to us to take action that changes our future. That statement may rub some people the wrong way—but it’s the truth.
While we are not responsible for everything that happens to us, we are responsible for how we respond. Do we seek guidance from people with wisdom and experience? In the Star Wars© movies, Luke Skywalker was the hero—but it was Yoda’s wisdom and experience that guided him toward success and helped him avoid costly mistakes.
Mistake #1: Not Creating Financial Security
Can you honestly say you’ve never made a financial decision that negatively impacted your current security? We live in a world of instant gratification—we want the best, and we want it now. When you spend as much as (or more than) you earn each month, it becomes impossible to grow and build financial security.
Even if you are a disciplined saver, are your savings invested in the right vehicles for your future?
Changing our circumstances requires accepting ownership of our beliefs and actions. While money can’t buy happiness, the lack of it can certainly buy stress, unhappiness, and regret. Money itself has no heart—it is neither good nor bad. That is determined by our values and how we use it. Money is much like food: our choices today impact our health tomorrow.
Are your beliefs about money based on facts or opinions? For example, some believe wealthy people are greedy or selfish. While that can be true, many wealthy individuals also create jobs, support churches, and contribute generously to charities that help those in need.
Mistake #2: Not Having Long-Term Tax Strategies
You don’t have to be great at math to understand this: the more money you lose to taxes, the less you have to spend on what you want or need. The key word here is long-term.
A large majority of people have all their savings in retirement accounts where every dollar withdrawn is taxable. This lack of tax diversification can potentially affect the amount of your retirement income.
Mistake #3: Not Having a Legacy Plan
None of us will live forever. Most of you reading this have people you love and care about deeply. If something were to happen to you, have you made plans to avoid placing financial stress and hardship on them?
Have you done what you can to minimize family conflict and uncertainty during an already emotional time?
Mistake #4: Not Seeking Help
This could be the biggest mistake of all—because help is available.
Have you taken advantage of the experience and wisdom of professionals who can provide clarity and help you create a plan to address the first three mistakes?
We are only a phone call away.
*Thomas Herlong is Financial Adviser offering investment advisory services through Eagle Strategies LLC, a Registered Investment Adviser and a Registered Representative offering securities through NYLIFE Securities LLC (member FINRA/SIPC), 424 Calhoun Street, Johnston SC, 29832, 803-275-5090. A Licensed Insurance Agency. Eagle Strategies and NYLIFE Securities are New York Life Companies. Thomas Herlong does not provide individualized tax or legal advice. Please consult with your tax advisor or attorney regarding your individual circumstances.
