As pumpkin-spiced lattes and ghostly décor begin to hit the scene, one thing is certain: autumn is here! While we may not be feeling the cooler temperatures in Florida just yet, the sights, sounds and tastes of Spooky Season have officially arrived. In addition to ghouls and goblins, there is another fright lurking in the back of our heads at this time: not ending the year on a financially strong note. In this article, we share five scary money mistakes to avoid this fall so that you can enjoy more treats than tricks in your bank accounts!
Not creating a plan.
If you don’t have a budget in place, you don’t have a plan for how to maximize your dollars. Without that budget, it can be easier to make impulse purchases or lead with our “wants” over our “needs,” which can have a monstrous effect on our finances. Creating a budget can help you plan for the future and ultimately live your best life. One way to prioritize your spending is to identify your short-term, mid-term and long-term goals. By crafting your budget with these goals in mind, you can give your money more of a purpose.
Only making the minimum payments on credit cards.
One of the most common mistakes is to only make the minimum payments on credit cards when you are capable of paying those bills in full. There has been a misconception that carrying a balance helps to boost your credit, but that is simply not the case. By carrying a balance and only making minimum payments, you will end up paying much more in the long run, which we think is downright spooky! Because your amount owed makes up 30% of your credit score, you can also negatively affect your credit by carrying too high of a balance.
Not knowing what is on your credit report.
In 2020, it’s easier than ever to keep track of your credit and know what is being reported. Because fraudulent activity has been on the rise during the coronavirus pandemic, you can now request a free copy of your credit report from all three bureaus at AnnualCreditReport.com once a week through April 2021. Keeping an eye on your credit report will not only help you to make better borrowing decisions, but will also help you identify any fraud or identity theft early on and stop it in its tracks. Make sure all of the personal information on your credit report is accurate, and that you recognize all inquiries or accounts on your report.
As pumpkin-spice lattes hit the shelves and spooky décor pops up everywhere, there’s no doubt about it—autumn has arrived! While Florida might not feel cooler yet, the sights, sounds, and flavors of the season are in full swing. But alongside the fun of fall, there’s one fear many of us carry: not ending the year on strong financial footing. To help you turn more “treats” than “tricks” into your bank account, here are five scary money mistakes to avoid this fall.
Not Creating a Financial Plan
If you don’t have a budget, you’re essentially navigating your finances without a map. Budgets help prevent impulse spending and keep your priorities aligned with your long-, mid-, and short-term goals. By identifying what matters most and allocating your money accordingly, you give every dollar a job and a purpose. One helpful approach is to structure your budget around meaningful goals—doing so can increase accountability and reduce stress around spending.
Only Making Minimum Payments on Credit Cards
One of the biggest money pitfalls is paying only the minimum amount due each month. Not only does this cost more over time due to accumulated interest—it can also affect your credit health. Carrying high balances can negatively impact your credit score and keep you stuck in a cycle of debt. When possible, aim to pay your credit card balances in full to avoid unnecessary interest and keep your credit utilization low.
Not Knowing What’s on Your Credit Report
Your credit report plays a major role in loan approvals, interest rates, and even some employment decisions. Reviewing it regularly helps you catch errors early and spot signs of fraud or identity theft. You can request free credit reports from all three bureaus through AnnualCreditReport.com. Once you receive your reports, confirm that all personal information is accurate and that you recognize all accounts and inquiries.
Not Saving for Emergencies
Unexpected expenses happen—and without savings, they can be frightening. A common guideline is the 50/30/20 rule: 50% of your income for essentials, 30% for lifestyle choices, and 20% for savings and debt repayment. If 20% feels too steep at first, start smaller and build from there. Even modest, consistent contributions grow over time. Automating your savings, whether through an automatic transfer or paycheck split, makes building your emergency fund much easier.
Not Monitoring Your Accounts
Mobile and online banking make it easier than ever to keep tabs on your accounts. Checking your balances and recent transactions regularly helps you avoid overdraft fees, stay aligned with your budget, and catch fraudulent activity quickly. The sooner you notice unauthorized charges, the faster you can act to protect your accounts and limit potential damage.
Want more helpful financial insights to stay on track this season? Explore additional resources from Addition Financial at resources.additionfi.com.
Valerie Moses is a Senior Relationship Manager at Addition Financial Credit Union, where she manages public relations and key Central Florida partnerships. Outside of work, she explores lifestyle and travel topics on her blog, Wellness & Wanderlust, and hosts the podcast of the same name.
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