Smart Finance Moves

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  • Top Financial Mistakes

    Financial Mistakes   

    Personal finances can be challenging. While many external factors influence financial health, the individual can still engage with finance in an informed manner. We want to give you some insight into several everyday personal financial mistakes to look out for and survive trying times.

    Unnecessary Spending

    Every indulgence, like a latte or pay-per-view film, adds up. If times are tough for you, show restraint on the unnecessary.

    “Unnecessary” is the vital word here; the little joys that some might call “frivolous” may be the only things keeping you going. Healthy finance includes a healthy mind; if you can plan for and afford something, enjoy it.

    Recurring Payments

    Assess your monthly purchases and multiply that cost by 12. Are these purchases more “nice-to-haves” or “necessities?” Are there cheaper alternatives?

    Living on Credit

    Using credit to buy niceties is common but not always wise. While the “sticker price” might make credit appealing, the story changes once interest starts the next month.

    A New Car

    While people buy cars all the time, few do with cash. You could finance, but it is tricky; payments may be affordable but you do not own the vehicle until it is entirely paid for. You would also borrow money on that vehicle, thus paying interest on a depreciating asset. If you need a vehicle loan; then consider a cheap, fuel-efficient vehicle model, that’s a few years older than new.

    Overspending on the Home

    For housing, focus on your needs and consider the many supplementary costs and possible amenities you may not consider.

    Misusing Equity

    Refinancing and buying off of your home’s value means handing its deed to someone else. While it may still be sensible if you can lower your interest rate or prioritize a more intensive debt, consider a home equity line of credit (HELOC) instead.

    Not Saving Up

    Most American households live paycheck-to-paycheck with little evidence of this situation changing any time soon. This means that every dollar matters and missing a paycheck almost guarantees trouble. The common advice is to look at your monthly costs/debts and set aside a bare minimum of three months of that figure as an emergency fund.

    Ignoring Retirement

    No investment in the market could mean working until your dying day. Consider a tax-deferred retirement account or employer plan. Consider all your investments’ risks and growth, then have a financial advisor take a look.

    “Solving” Debt with Retirement Funds

    If you have a greater percentile debt than your retirement account, things are not a simple matter of pocketing the difference by swapping them out. Such an act kneecaps compounded interest, leaves you struggling to restock the fund, and may incur a fee for withdrawing before age 59.5; a saner approach would be requesting a loan out of your 401(k). Use savings to repay a debt and you will be indebted to your retirement.

    Having No Plan

    Relying on credit has long-term, financially stressful consequences that can snowball upon themselves. Overspending on a home (more than 28% of gross monthly income on the home or 36% of the total debt) leads to strained monthly budgets from all of the other incidental costs. Home equity should never be handled like a piggy bank unless you want greater debt and interest.

    Creating a plan means having clear goals that enable you to spend wisely while avoiding financial chaos. A good plan covers all financial aspects and accelerates the achievement of major life milestones.

    Wrapping Up

    While you cannot control every aspect of your financial life, review your situation and make a plan. Most people can make positive changes like reducing spending, easing off credit, careful budgeting, and prioritizing their savings.

            Financial Mistakes

    Personal finance can be challenging. While many external factors influence financial health, the individual is still able to engage with finance in a sane and informed manner. We want to give you some insight into several everyday personal financial mistakes so that you can look out for them and survive trying times.<h2>Unnecessary Spending</h2>Every indulgence, like a latte or pay-per-view film, adds up. If times are tough for you, show restraint on the unnecessary.

    “Unnecessary” is vital here; the little joys that some might call “frivolous” may be the only things keeping you going. Healthy finance includes a healthy mind; if you can plan for and afford something, enjoy it.<h2>Recurring Payments</h2>Assess your monthly purchases and multiply that cost by 12. Are these purchases more “nice-to-haves” or “necessities?” Are there cheaper alternatives?<h2>Living on Credit</h2>Using credit to buy niceties is common but not always wise. While the “sticker price” might make credit appealing, the story changes once interest starts the next month.<h2>A New Car</h2>While people buy cars all the time, few do with cash. You could finance, but it is tricky; payments may be affordable but you do not own the vehicle until it is entirely paid for. You would also be borrowing money on that vehicle, thus paying interest on a depreciating asset. If you need a vehicle loan, consider a cheap, fuel-efficient model.<h2>Overspending on the Home</h2>For housing, focus on your needs and consider the many supplementary costs.<h2>Misusing Equity</h2>Refinancing and buying off of your home’s value means handing its deed to someone else. While it may still be sensible if you can lower your interest rate or prioritize a more intensive debt, consider a home equity line of credit (HELOC) instead.<h2>Not Saving Up</h2>Most American households live paycheck-to-paycheck with little evidence of this situation changing any time soon. This means that every dollar matters and missing a paycheck almost guarantees trouble. The common advice is to look at your monthly costs/debts and set aside three months of that figure as an emergency fund.<h2>Ignoring Retirement</h2>No investment in the market could mean working until your dying day. Consider a tax-deferred retirement account or employer plan. Consider all your investments’ risks and growth, then have a financial advisor take a look.<h2>”Solving” Debt with Retirement Funds</h2>If you have a greater percentile debt than your retirement account, things are not a simple matter of pocketing the difference by swapping them out. Such an act kneecaps compounded interest, leaves you struggling to restock the fund, and may incur a fee for withdrawing before age 59.5; a saner approach would be requesting a loan out of your 401(k). Use savings to repay a debt and you will be indebted to your retirement.<h2>Having No Plan</h2>Relying on credit has long-term, financially stressful consequences that can snowball upon themselves. Overspending on a home (more than 28% of gross monthly income on the home or 36% of the total debt) leads to strained monthly budgets from all of the other incidental costs. Home equity should never be handled like a piggy bank unless you want greater debt and interest.

    Creating a plan means having clear goals that enable you to spend wisely while avoiding financial chaos. A good plan covers all financial aspects and accelerates the achievement of major life milestones. <h2>Wrapping Up</h2> While you cannot control every aspect of your financial life, review your situation and make a plan. Most people can make positive changes like reducing spending, easing off credit, careful budgeting, and prioritizing their savings.      

    Financial Mistakes       

    Personal finance can be challenging. While many external factors influence financial health, the individual is still able to engage with finance in a sane and informed manner. We want to give you some insight into several everyday personal financial mistakes so that you can look out for them and survive trying times.

    Unnecessary Spending

    Every indulgence, like a latte or pay-per-view film, adds up. If times are tough for you, show restraint on the unnecessary.

    “Unnecessary” is vital here; the little joys that some might call “frivolous” may be the only things keeping you going. Healthy finance includes a healthy mind; if you can plan for and afford something, enjoy it.

    Recurring Payments

    Assess your monthly purchases and multiply that cost by 12. Are these purchases more “nice-to-haves” or “necessities?” Are there cheaper alternatives?

    Living on Credit

    Using credit to buy niceties is common but not always wise. While the “sticker price” might make credit appealing, the story changes once interest starts the next month.

    A New Car

    While people buy cars all the time, few do with cash. You could finance, but it is tricky; payments may be affordable but you do not own the vehicle until it is entirely paid for. You would also be borrowing money on that vehicle, thus paying interest on a depreciating asset. If you need a vehicle and need a loan, consider a cheap, fuel-efficient model.

    Overspending on the Home

    For housing, focus on your needs and consider the many supplementary costs.

    Misusing Equity

    Refinancing and buying off of your home’s value means handing its deed to someone else. While it may still be sensible if you can lower your interest rate or prioritize a more intensive debt, consider a home equity line of credit (HELOC) instead.

    Not Saving Up

    Most American households live paycheck-to-paycheck with little evidence of this situation changing any time soon. This means that every dollar matters and missing a paycheck almost guarantees trouble. The common advice is to look at your monthly costs/debts and set aside three months of that figure as an emergency fund.

    Ignoring Retirement

    No investment in the market could mean working until your dying day. Consider a tax-deferred retirement account or employer plan. Consider all your investments’ risks and growth, then have a financial advisor take a look.

    “Solving” Debt with Retirement Funds

    If you have a greater percentile debt than your retirement account, things are not a simple matter of pocketing the difference by swapping them out. Such an act kneecaps compounded interest, leaves you struggling to restock the fund, and may incur a fee for withdrawing before age 59.5; a saner approach would be requesting a loan out of your 401(k). Use savings to repay a debt and you will be indebted to your retirement.

    Having No Plan

    Relying on credit has long-term, financially stressful consequences that can snowball upon themselves. Overspending on a home (more than 28% of gross monthly income on the home or 36% of the total debt) leads to strained monthly budgets from all of the other incidental costs. Home equity should never be handled like a piggy bank unless you want greater debt and interest.

    Creating a plan means having clear goals that enable you to spend wisely while avoiding financial chaos. A good plan covers all financial aspects and accelerates the achievement of major life milestones.

    Wrapping Up

    While you cannot control every aspect of your financial life, review your situation and make a plan. Most people can make positive changes like reducing spending, easing off credit, careful budgeting, and prioritizing their savings.

  • Personal Bank Account Types

    Personal Bank Account Types

     Most people use a regular bank savings and or checking account for their personal finances. Other personal financial accounts are available to consumers; each with benefits and drawbacks to each account type. You will have to decide with accounts are best for your wants and or needs.

    • Savings accounts are bank accounts frequently used to save money for any financial goals in the future as in a car down payment. Access to savings accounts often limited by the banking institution. Savings accounts are great for funds you want to stash away for any length of time.  These are not great if you need frequent access to your account.  
    •  A Checking Account usually offers easy access to your money through using physical checks or debit cards. This convenience makes checking accounts one of the ideal ways to pay bills and execute your financial goals. It is not the ideal way to accumulate interest from your money, as it were. 
    • Money Market Accounts are a hybrid account with aspects of checking and savings accounts. However, there are usually limits to the number of monthly withdrawals, like with a savings account. They do offer a higher annual percentage yield; however, they do require a minimum balance and limited monthly withdrawals from the account.
    • A CD, or Certificate of Deposit, gives a higher interest rate on your money, but you have limited access to these funds. If you cash the CD out early, there are early withdrawal penalties.

    More information is below about each account type.

    Savings accounts

    Most people start a savings account as their first bank account because they often offer minimal amounts to start and may have low amounts to avoid service fees. A savings account is a good means to set money aside for any reason you may have; uses could range from an account for a vacation, weddings, house downpayment, car downpayment, among many others. Emergency funds are another good use for this type of account for appliance or other types of repairs. Most savings accounts do pay back a small amount of interest, but they often do not pay back high-yield interest.  There are a few strictly online banks that offer a high-yield savings account, which is better than a regular savings account.  One of the drawbacks to savings accounts is that some banks charge fees if you make too many transfers or withdrawals. Many do not have debit cards or checks as part of the restrictions in place.

    Checking accounts

    The most user-friendly kind of banking account. Checking accounts are more user-friendly with easy access to your money, with check writing capabilities, and often the option to connect an Automated Teller Machine card or a debit card. These accounts usually have unlimited check writing and a debit card, most of the time making them a great way to take care of your daily living expenses. They do have a few drawbacks; they earn no or very little interest.  Some banks and credit unions offer interest-bearing checking accounts. 


    These accounts may charge monthly service fees for monthly maintenance, minimum account balance penalties, and ATM withdrawals. There may be additional fees for using your debit card too many times or for withdrawing money too frequently.


    Money Market Accounts

    A Money Market Account is a hybrid account type that has features of both checking and savings accounts. They offer a high annual percentage yield versus a low percentage yield, like some other account types. They require a higher minimum balance to be kept in the account. They are available with check writing and debit card privileges, but they may limit the number of checks written each month without extra fees.

    MMAs are a good financial vehicle to keep a high account balance capable of high interest returns. Access to your funds is limited, and a minimum balance is required.

    Certificates of Deposit

    Certificates of Deposit, or CDs, are bank accounts allowing an individual to financially invest for a definite time period at a fixed interest rate, which is a low-risk financial tool. The time length to CD maturity varies from mere months to several years.  All kinds of financial goals can benefit from the use of CDs, and they often pay higher APYs than other account types. A commitment to keep the money in the account for the duration is a requirement; to avoid penalty fees, Certain banks offer no-penalty CDs, offering lower interest rates in exchange for waived penalties for early withdrawals.

    CDs are good to earn interest at a better rate than other bank accounts in exchange for agreeing to set your money aside for a specified time period.

    In conclusion, deciding on which kind of bank account or accounts will best fit your financial needs and wants depends on your financial goals and strategies. Whichever choices you make, you will have a better idea which account type or types are best for your situation.