Cortburg Speaks Retirement

5 Financial Bad Habits to Cut This Year

April 03, 2024 • Miguel Gonzalez, MBA, AIF®, CPFA®, CRC® • Season 2024 • Episode 182

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Unlock financial success by identifying and addressing overlooked money habits!

Join Miguel Gonzalez this week as we delve into common yet overlooked financial pitfalls that could be undermining your financial health.  Learn how to curb emotional spending, manage small expenses, and more!

About Cortburg Retirement Advisors, Inc. 

Cortburg Retirement Advisors is a full-service, boutique financial planning firm - helping guide clients through turbulent and calm economies. Their goal is to help grow, protect, and preserve their assets from their first job through retirement. Cortburg’s “all in one house” capabilities mean that their experienced team can help with all financial needs - wealth management, estate and tax planning, group retirement, employee benefits, insurance, and retirement planning.    

Opinions expressed are subject to change without notice and are not intended as investment advice or a solicitation for the purchase or sale of any security. Please consult your financial professional before making any investment decision. 

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

CRC conferred by The International Foundation for Retirement Education.

Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Private Advisor Group, LLC, a registered investment advisor.  

Private Advisor Group, LLC and Cortburg Retirement Advisors, Inc. are separate entities from LPL Financial.

Investing involves risk including possible loss of principal.


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Welcome to Cortburg Speaks Retirement Podcast
with Miguel Gonzalez, MBA, AIF®, CPFA®, CRC®

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Welcome to Cortburg Speaks Retirement

An audio podcast about investing in the stock market, financial planning, money management and retirement planning.  Each Wednesday, we help investors at all stages of life learn how to potentially grow and preserve their money from first job through retirement.

Now here is your host, Miguel Gonzalez.

 HOST

Good morning and welcome to the CORTBURG SPEAKS RETIREMENT audio podcast.   

Let’s talk this week about some bad financial habits that could be hurting your bank account!

When it comes to financial bad habits, the most common are also well known — don’t spend too much, don’t take on unsustainable debt, and avoid living paycheck to paycheck. But what happens once you’ve implemented this advice and still aren’t getting ahead? Here are five overlooked financial bad habits that could be draining your bank account.

Engaging in Emotional Spending

Many people tend to use shopping to cope with stress, sadness, or boredom. Nearly 9 in every 10 Americans are guilty of emotional spending at some point, and this figure has only increased since the pandemic.1 Emotional spending is far more likely to lead to impulse purchases and, ultimately, excessive credit card debt.

To prevent emotional spending, remain mindful of your emotional triggers and focus on finding healthier outlets for any mental turmoil. You might also want to make some rules for yourself. For example, give yourself a 24-hour pause as a cool-down period before making any large or unplanned purchases.

Ignoring Small Expenses

It's easy to dismiss small, recurring expenses as inconsequential. However, daily coffee runs, streaming subscriptions, meal deliveries, and gas station snacks add up over the course of a month. If you don't carefully track your spending, you may be shocked at the amount of money frittered away in dribs and drabs.

So, how do you avoid the slow leak of minor expenses? A potentially useful tool is following a strong budget. By using one of the many software programs or apps that track and categorize all your expenses, no matter how small, you may identify your financial weak spots.

Neglecting Your Financial Education

Personal financial topics aren't generally taught in school, so those whose parents weren't models of fiscal responsibility may enter adulthood without much financial knowledge. If you don't understand basic financial concepts like budgeting, investing, and debt management, it's easy to make uninformed choices. And even once you've mastered the basics, it's important to stay informed about major changes in the stock market, tax code, and general economy.

Procrastinating About Retirement Savings

Procrastination is one of the most common bad habits—financial and otherwise. In particular, many people tend to put off saving for retirement under the false assumption that they have plenty of time to worry about something so far in the future.

The truth is that the earlier you start saving and investing for retirement, the more you may benefit from compound interest. Delaying your retirement savings might mean you must save far more later in life or invest much more aggressively for the same goals.

Frequent, Unplanned Borrowing

Relying on credit cards, payday loans, or other forms of high-interest borrowing to cover everyday expenses is a dangerous habit. Once you take out your first loan, you might find the interest charges often accumulate more quickly than your ability to pay them off. This could send you into a debt spiral you may find difficult to escape.

Building an emergency fund and managing your cash flow effectively could help prevent this problem. One way to avoid this cycle is never to take out a high-interest loan.

Make sure to visit our website, www.CortburgRetirement.com. Our site is filled with educational videos, eBooks, publications, and financial calculators designed to help you learn more about your finances.  As you search our site, send us a note regarding any questions you may have about any particular investment concepts or products. We will get back to you quickly with a thoughtful answer.

This is Miguel Gonzalez, Certified Retirement Counselor (CRC) and Managing Partner, with Cortburg Retirement Advisors signing off for this week’s educational podcast.  

 

DISCLOSURES  

Opinions expressed are subject to change without notice and are not intended as investment advice or a solicitation for the purchase or sale of any security. Please consult your financial professional before making any investment decision. 

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

CRC conferred by The International Foundation for Retirement Education.

Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Private Advisor Group, LLC, a registered investment advisor.  

Private Advisor Group, LLC and Cortburg Retirement Advisors, Inc. are separate entities from LPL Financial.

Investing involves risk including possible loss of principal.

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Miguel Gonzalez, MBA, AIF®, CPFA®, PPC®, CRC®

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