There are many ways to make financial mistakes. Many people go about investing and savings the wrong way. If it is hard for you to save money, then this article is for you. We all make mistakes financially, whether it be investing in the wrong companies or loaning money to someone who is known for being in debt. In this article, we will discuss the common mistakes people make and solutions to the problems.
Investing in the wrong products
Many people go wide open into an investment without first doing research on the product. Some consider that financial Russian roulette. If you are not using a financial adviser, then knowing where to put your money can be a tough decision. That is why there are so many investment companies to choose from. Prices vary according to the company, so there is no set price. Choosing the right Investment company can mean the difference between success and failure. The four top investment companies are listed below.
Betterment isn’t only an investment firm but an investment solution. They are the best firm for the green investor as well as the seasoned vet. They handle IRA’s with the option to roll over old 401k’s from other employers to Betterment. When going down this list, this is the best place to start.
This investment company will send you alerts via their app and let you know when action is required from you. Their app is user-friendly even for the novice. If you would like to get into investing and trading, check out their website.
Vanguard is a company that works for individual investors and well as those needing a helping hand. This is more for investors that have been trading for a while, but they do offer help and a great customer service platform. They also handle 401K’s as well as CD’s that you may have invested in the company you are working for.
Fidelity has been around for a lot longer than the first two. They are used to working with the high investors with resources of $100,000 or greater. However, they do have programs for those investing less but unless you have a big chunk to sink in, they are not advisable. For those high rollers, they offer the best in opportunities and a bigger client base.
If you own your own company, this Investment firm is your best bet. They are the ones with advertisements on television that run during the day time. Great for small businesses and large corporations alike, TD Ameritrade handles all the trading for you and sends you monthly progress reports on how your investments are doing.
Another common mistake people often make is choosing the wrong bank and the wrong savings accounts. Research banks before opening a savings account. In the fine print, they let you know their current interest rate. Shop around to find the bank that pays the highest interest per cycle. The biggest mistake people make is choosing just any bank and do not read the interest rate per cycle. Then when the cycle ends, they get less than they were expecting.
Piling on too much debt
Many people today live beyond their budgets. This, in turn, puts them deeper into debt. Before they know it they are overwhelmed, especially when dealing with credit cards. If you have enough money in your checking account to buy what you want, use your debit card instead, eliminating another notch on your debt belt.
David Milberg is financier in NYC.