From operating without defined financial goals to putting your kids’ college savings before retirement, you’d be surprised at the common financial planning mistakes most people make without realizing it. Avoid financial planning mistakes and get on track by learning how to implement our method with Alpha Omega Wealth.
Common and Costly Financial Planning Mistakes You Didn’t Know You Were Making
When it comes to providing clients with guidance on how to live within their means, our Infinite Banking advisors often focus on savings and sustainability. That is, are you saving enough or spending little enough to be able to live comfortably through retirement? Establishing well-rounded private wealth management and retirement strategy will require forethought, research, and at least some degree of financial education but it is well worth it.
Common financial planning mistakes to watch out for
- Leading an unsustainable lifestyle
- Not keeping enough working capital to protect both your business and your personal expenses in case of emergency
- Ignoring your business’s finances or the need for a succession plan
- Ignoring the need for a long-term private wealth management plan
- Lack of diversification of your invested assets
- Owning too much property
- Overextending financial capacities to help children or grandchildren
- Skipping estimated tax payments throughout the year
Although getting ahold of your finances may seem like a daunting task, working with a financial advisor will not only make the process easier, it will empower you with the financial education and investment strategies you need to make informed decisions about your own finances.
Excuses for Common Financial Planning Mistakes
From lack of time to lack of knowledge, avoid making these excuses for financial common planning mistakes:
“Estate plans are only for folks with a lot of money.”
While an estate plan sounds like a pretty big deal, and it can be, for most people, having an estate plan can be as simple as having a will in place. Putting an estate strategy in place with the Infinite Banking method ensures that the laws of your state don’t interfere with your wishes for your estate.
“My credit card is my emergency fund. What’s wrong with that?”
Saving for the future to offset any emergencies is crucial not only to long-term financial planning strategies, but it’s also important to your short-term security. Instead of falling back on a credit card that could damage your credit score, start stashing away between three and six months of living expenses in an account you can easily access.
“I have too much debt to pay more than the minimum.”
Although significant amounts of debt can feel daunting, paying only the minimum is the kiss of death to your bank account. Paying the minimum on credit card or student loan debt keeps you in debt longer and ensures more of your income gets consumed by interest rates.
Stop Making Excuses and Start Making a Financial Plan
Learning how to avoid common financial planning mistakes is easy with a team of financial planners and educators. Connect with Alpha Omega Wealth financial advisors today to see the prosperity our method and the Infinite Banking concept can bring to your financial future!