Itâ€™s making them at the right time, says Stephen F. Lovell, a financial professional and president of Lovell Wealth Legacy (www.lovellwealthlegacy.com).
â€œDoing the right thing at the wrong time makes it the wrong thing to do,â€� Lovell says.
April is National Financial Literacy Month, a good time to take stock of where you are money wise and explore how you can improve.
says that by asking the right questions or taking the right precautions, you can sidestep these common financial mistakes:
â€¢ Becoming infatuated with the latest hot investment.
Itâ€™s easy to be seduced by whatever is creating the greatest buzz.
After all, you donâ€™t want to miss out while everyone else is reaping rewards.
Resist the temptation, Lovell
Momentary sizzle doesnâ€™t guarantee long-term success. â€œHot investments are like ice cubes,â€� he
says. â€œTheyâ€™re solid when you get them, but they soon liquefy and when you liquidate, your gains trickle away.â€�
â€¢ Neglecting to consider all the options.
Savvy investors use different kinds of investments to satisfy different financial needs, Lovell
Donâ€™t neglect the full array of available investments. â€œRelying only on stocks, bonds and cash puts you at a disadvantage,â€� he
Too many people let their income level set the ceiling on how much they spend each month, Lovell
Such spendthrift habits leave people living paycheck to paycheck and when the inevitable emergency arises â€" a car repair, a medical bill â€" the bank account is short and they need to take on debt just to survive until the next payday.
Your budget, not your income, should dictate spending limits, Lovell
If you donâ€™t have a monthly budget â€" and many people donâ€™t â€" now is a good time to create one, he
Just make sure the amount you budget to spend is less than your net income, and then stick to your budget.
Otherwise, youâ€™ll soon creep into the realm of deficit spending, a place best avoided.
â€¢ Trying to go it alone.
Most people, whether they want to admit it or not, need investment advice, Lovell
Without reliable guidance, they can end up lost in the financial jungle and succumb to numerous hazards that await the unwary. â€œYou need someone who understands all the upsides and all the pitfalls,â€� he