Financial Mistakes To Avoid In 2024

Here’s the deal: To genuinely pull ahead this year, you need to dust off those neglected, cobweb-covered corners of your financial house. The ones you’ve conveniently ignored or barely glanced at. Those are the game changers. Let’s dive in.

1. Not having insurance

It’s like going into a storm without an umbrella. No insurance? You’re asking for trouble. A single mishap could lead to a financial deluge. The solution is simple: Get insured. Health, car, home — cover your bases. It’s not just sensible; it’s essential.

If this seems like a mammoth task, hire it out. Get a broker to analyze what’s best for your situation. It might cost a dollar more, but it’ll save you thousands if you never got insurance to begin with.

Bonus points: Get your family on board for the new year, too. This will not only be a lifesaver for you and them (quite literally) but might also get you all some discounted deals as well.

1. Not having an emergency fund

Imagine your car breaks down or you face a sudden medical bill. Without an emergency fund, you’re flirting with debt disaster. The game plan here is straightforward: Build that fund. Aim for a cushion that can cover three to six months of expenses. It’s your financial shock absorber.

Don’t know where to start? Consider opening a bank account that automatically deducts $50 from your incoming pay. And if this seems difficult, call up your bank and get them to set it up. The key here is to set it and forget it (until you need it).

1. Not planning for taxes

Taxes can be a ticking time bomb if ignored. Waiting until the last minute invites stress, mistakes and penalties. The wise approach is to tackle your taxes all year round. Keep track of your expenses and deductions. It’s about turning a headache into a manageable task.