Spooky Financial Mistakes

Spooky Financial Mistakes

By Carrin Wester
Financial Advisor

As a financial advisor, I have heard my share of financial horror stories, some of which could be mitigated or avoided all together. Here are a few of my tips to ensure you’re on the right track:

#1 - Spending more than you’re making
It can be easy to spend more than you make if you’re not utilizing a realistic and practical budget. A few decades ago, before the prominent use of credit cards and debit cards, it was easier to stop spending – when the cash was gone, so was the spending.

Today many of us have more than one bank account, direct deposit, multiple credit cards, and automatic payments. It can be difficult to track what you are really spending if you’re not reviewing transactions periodically. A budget can help define your spending limits and, most importantly, allocate a percentage of your income directly to your savings and other goals.

#2 - Not properly guarding your personal info
Over the last several years, it seems securing personal information is met with nothing but tricks, at the hands of all types of scammers. Personal information, including social security numbers, bank and credit card numbers, and account passwords, is often what many villains are after. Protect yourself with the following tips.

Stay vigilant - Phishing, imposter and charity scams are all ways that fraudsters will try to obtain your personal information. Be wary of unsolicited calls, texts or emails. Always investigate the source of the inquiry before responding to any unsolicited attempts to access your personal information.

Monitoring your credit report - We recommend checking your credit report annually for any errors or unexpected information. If you see anything suspicious, make sure to contact the credit bureaus and report any errors immediately.

Update your passwords - If you are using the same password from 10 years ago, it is time for an update! Plan to update passwords annually and avoid using the same password or password formula across multiple accounts.

Keep your information organized with a legacy binder - A legacy binder is designed to document your important information and secure legal documents in a safe and secure spot. This is a useful tool for close friends and family if something should happen to you and they need to access your accounts and personal information. Contact our office if you’d like more information on how to set up your legacy binder.

#3 - Being underinsured
When an individual is underinsured, an accident can impact their livelihood and can result in a financial catastrophe for their family. Not everyone needs life insurance, but it is important to consider if a policy makes sense during different stages of life. If it has been awhile since you have looked at life insurance options, it may be time to reinvestigate the options available to you.

#4 - Not working with a financial advisor
This is the type of spooky mistake that we hope you will avoid at all costs! Working with a financial advisor can help you stay focused on reaching your goals and provide access to tools and resources to help you become successful. In fact, working with a financial advisor can help keep you from making all the spooky mistakes outlined here.

Our team at The Arlington Group would love to help you remove any frights from your financial journey. Contact us today!

Carrin Wester is a registered financial advisor committed to helping people achieve their financial wellbeing goals.

Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. The Arlington Group Investment Consulting, LLC is a separate entity from WFAFN.

Insurance products are offered through non-bank insurance agency affiliates of Wells Fargo & Company and are underwritten by unaffiliated insurance companies. Wells Fargo Advisors is not a legal or tax advisor. Any estate plan should be reviewed by an attorney who specializes in estate planning and is licensed to practice law in your state.