Everyone can make mistakes with their money. Despite your financial success or overall stability, sometimes we fall prey to common human error. It’s important that no matter where you are in your financial journey to educate yourself on the common financial pitfalls that many of us are prone to such as avoiding our credit card debt or living beyond our means. A financial advisor in Orlando can help you navigate these blunders so you can stay vigilant and feel less alone when and if a financial blunder occurs in your life.

Here are five financial blunders you should avoid.

#1: Lifestyle Inflation

We all wish sometimes that we could live a lifestyle of the rich and famous, but if you indulge in that luxurious lifestyle too soon, it may come back to bite you. Spending more than you earn can slowly push you into debt, and end up leaving you living paycheck to paycheck. While we all deserve to treat ourselves every now and again if we overindulge past our financial capabilities, it could become unmanageable. If your monthly expenses are increasing well beyond your earnings, it may be time to reevaluate your lifestyle and see in what areas may be worth cutting back with a financial advisor. 

#2: Waiting Until Tomorrow to Invest

Sometimes the overwhelming feeling of decision paralysis can leave us pushing off creating an investment or savings account until later. However, with investing, the sooner you begin the sooner can begin to build your financial nest egg and reap the full benefits. Time is your friend when it comes to investing. Building interest over time can help you on your journey to build wealth and become Financially Free.

#3: Not Paying off Credit Card Debt

Your credit score is vital to your financial longevity. Therefore, always paying your credit card bills on time is crucial to avoid hidden fees or penalties from your bank. It may seem straightforward, but many people put off paying their credit card bills if money is tight. While some types of debt can wait, it’s always best to pay off credit card bills sooner rather than later.

#4: Not Building an Emergency Fund

There are many things we can plan for in finance, however, sometimes emergencies may occur out of the blue. While we can’t always predict when we will be hit with a big emergency such as medical bills or car accident repairs, we can work to build an emergency fund to know we will be covered in the case of those emergencies. A financial advisor in Orlando could help you find strategies that will help you build an emergency fund. Ideally, it’s recommended that we have enough saved to cover 3-6 months of our everyday living expenses. 

#5: Planning Finances Alone

We all have the capability to be our own financial pilots, but you should never fully go into your financial journey alone. Confiding in a trusted loved one or certified financial advisor can enable you with the tools and resources for your success. Having honest, objective advice can be the solution to becoming financially literate and building your wealth, one step at a time.