MONEY MISTAKES TO AVOID PART 1
Managing money can often times have just as large, if not a larger impact on your life than the amount of money you make. Here are some money mistakes to avoid in order to keep your finances on track.
NEVER NEGOTIATING SALARY
Salary.com reports that 62% of people rarely or never negotiate their salary. The numbers get higher when you look at factors like race, gender, age and income level as well. The largest fears being the lack of negotiating skills, fear of losing a job offer and general unpleasantness of asking for more money. It’s daunting. Great times to bring up salary are during the hiring process, and then at annual reviews. But this salary will set the salary bar for all future negotiations. It is that serious. It’s never too late to start negotiating.
LIVING WITHOUT A BUDGET
Americans don’t get hip to the idea of a budget until later on in the life when it comes time to save up for something important, like a house, wedding, trip to Europe. etc. Many millennials also forgo budgeting because a record number of them are still living at home with mom and dad who are footing a large amount of the bills. Budgets are important for staying on track with your spending so that you’re A. only spending on what fulfills you most and B. contributing to your financial goals. No budget = higher susceptibility for making further financial mistakes… like more debt, and less money for retirement.
NOT CONTRIBUTING TO RETIREMENT
This is tough. I hesitate to call it a financial mistake and instead prefer to refer to it as a financial circumstance. Retirement saving is often seen as a luxury by multiple age groups. Millennials often are drowning in student loans, while Boomers have mortgages and other obligations. In this survey conducted by the Indexed Annuity Leadership Council in March and April of 2015, 37% percent have no money set aside, and those who do save have little, with 18% having less than $5k in the accounts. The earlier you start the higher the impact on future saving. Do what you can, when you can. Start small, and make sure to utilize any and all retirement benefits your employer gives.