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Friday, August 25, 2017

Financial Fools Confess So You Can Learn From Their Mistakes!

I won't be naming any names in this post, but suffice it to say there are some folks out there that are a bit less than brilliant when it comes to managing their finances. For them, this is not good, as bad money management can get you into all sorts of trouble. However, there is a silver lining, because we can learn from their mistakes, thus avoiding them ourselves, or at least minimizing the negative impact that they may have. Keep reading to find out more.

“I don't budget” - S. C, Ohio

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S’s problem is quite a serious one, not only does she not have a general idea of where her family's money is going each month, but she doesn't keep a check on their actual spending either. S feels like their financial situation has got too depressing, and while she and her husband both work full time, all of their money is taken up with bills, leaving nothing for fun stuff. This has caused her to avoid managing their money because she feels that this will further depress her mood.

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The issue here is that S is letting her emotions about finance take over. She feels it's a bad situation, so she avoids it. But what she is actually doing is blocking herself from improving. As she is paying no attention to where her money is actually going. In fact, by keeping a closer eye on what she expects, and then actually does pay out, she could cut her family's spending and reclaim finances that can be used for fun activities and little luxuries. Something that is much more likely to relieve her depression around money than just ignoring it is.

“I don't pay much attention to my taxes” - B. D, New York State

B is a busy self-employed salesman. He travels with his job and rarely gets to spend any time at home with his wife and son. So when he is there, he tries to dedicate as much time to them as possible. Unfortunately, that means that other important home tasks like keeping good financial records and filling out accurate tax returns can be neglected.

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The problem with this is that although B is making a good income and spending as much time with his family as he can, he is putting their financial future in danger. This is because by not keeping proper records he is risking filling out his tax return wrong. Something that can lead to dire consequences, such as being accused of fraud and even having a criminal case brought against him.

Obviously, the answer is for B to pay more attention to his taxes and get help with any areas that he is unsure of.  Happily, he can arrange a free initial consultation with a top IRS tax attorney to do just this. Allowing him access to the most up to date advice and allowing him to avoid issues with the law in the future.

“I don't save ” - M. P, Michigan

M is a single mother of three that lives in Saginaw area of Michigan. Times are tough for M, and she is someone that has trouble making ends meet. Especially, with three mouths to feed, and three back to clothes. M's eldest son Jon works part time, as well as studying at college. Helping his mom out as much as he can, but it's often only enough to balance the books at the end of the month, not leaving anything to put away into a saving account.

The problem with this is that it causes M a lot of stress as she feels that her family is living hand to mouth. So if anything costly did happen, she wouldn't know where to find the money to pay for it.

The solution here isn't an easy one, it's not that M is frivolous with her money, she just doesn't have enough to survive and save as well. One possibility is for M to take on extra work, something that allows her to work from home. So she doesn't have to leave the kids alone, but still, has a little extra coming in that can be tucked away for emergencies.

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Another option is for M to look at where she make some savings on her grocery bill. Ways of doing this include planning out daily meals, shopping the offers, and even using coupons to build a stockpile of food that costs next to nothing. Then she can use the money she hasn't spent on shopping to start a saving account.



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