{"id":4969,"date":"2021-12-02T02:00:15","date_gmt":"2021-12-02T02:00:15","guid":{"rendered":"https:\/\/www.tagfinancial.com.au\/blog\/?p=4969"},"modified":"2021-12-01T00:02:44","modified_gmt":"2021-12-01T00:02:44","slug":"6-financial-mistakes-to-avoid-this-christmas","status":"publish","type":"post","link":"https:\/\/www.tagfinancial.com.au\/blog\/6-financial-mistakes-to-avoid-this-christmas\/","title":{"rendered":"6 financial mistakes to avoid this Christmas"},"content":{"rendered":"\r\n<div class=\"wp-block-image\">\r\n<figure class=\"alignright size-full is-resized\"><img decoding=\"async\" class=\"wp-image-4972\" src=\"https:\/\/www.tagfinancial.com.au\/blog\/wp-content\/uploads\/2021\/11\/iStock-186491740-doc.jpg\" alt=\"\" width=\"436\" height=\"289\" srcset=\"https:\/\/www.tagfinancial.com.au\/blog\/wp-content\/uploads\/2021\/11\/iStock-186491740-doc.jpg 800w, https:\/\/www.tagfinancial.com.au\/blog\/wp-content\/uploads\/2021\/11\/iStock-186491740-doc-300x199.jpg 300w, https:\/\/www.tagfinancial.com.au\/blog\/wp-content\/uploads\/2021\/11\/iStock-186491740-doc-768x509.jpg 768w\" sizes=\"(max-width: 436px) 100vw, 436px\" \/><\/figure>\r\n<\/div>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Just because the silly season is upon us, doesn\u2019t mean we need to give in and make silly financial mistakes. At TAG, we\u2019ve compiled a list of the most common financial blunders we see, explain how they can hurt your financial future, and some tips on how to avoid them.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>1. Following the herd<\/strong><\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Following the herd or making snap financial decisions based on emotion is a recipe for disaster.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Last year, we saw panic selling when it became clear COVID-19 was a major global pandemic, and commentators mused about an economic catastrophe and major recession (even a possible economic depression was tossed around by the media). However, markets quickly recovered, and those that sold their investments at the wrong time have missed out on one of the more rapid and significant recoveries from a recession.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Set your own goals and make factual based decisions where possible. Talk to a financial adviser before making big financial decisions \u2013 it can save you a lot of pain in the future.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>2. Mismanagement of debt (especially credit cards)<\/strong><\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Too many people have debts piling up and don\u2019t know exactly what they owe. Understanding your short term and long term debts will give you clarity when prioritising what to re-pay first.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Here are a few of our recent blogs with more information:<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li><a href=\"https:\/\/www.tagfinancial.com.au\/blog\/the-good-and-bad-debts-of-home-loans\/\">Understanding the difference between good debt and bad debt<\/a><\/li>\r\n<li><a href=\"https:\/\/www.tagfinancial.com.au\/blog\/credit-cards-friend-or-foe\/\">Credit cards \u2013 friend or foe<\/a><\/li>\r\n<li><a href=\"https:\/\/www.tagfinancial.com.au\/blog\/comparing-home-loans-and-getting-the-best-deal-moneysmart-gov-au-article\/\">Comparing home loans and getting the best deal<\/a><\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">While Buy Now Pay Later can be a convenient way of purchasing goods (and paying them off over a number of instalments), beware the temptation to spend what you don\u2019t have (and can\u2019t afford to easily re-pay).<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>3. Doing nothing<\/strong><\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">People often spend very little time thinking about their finances. They may think it\u2019s too hard, procrastinate and end up doing nothing.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">You don\u2019t need to spend hours on your finances. For most people, just spending the same time as you do to plan a holiday each year would be enough.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Here are a few ways to get started:<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li><strong>Take small steps<\/strong>. Committing to doing 1 action at a time. For example, this month I\u2019m going to find out how much insurance I have, and adjust it if needed. Then commit to the next.<\/li>\r\n<li><strong>Have a process<\/strong> to invest small amounts on a regular basis. This reduces the chances of a poor decision to invest large amounts at the wrong time. Even while markets are high, or low, if you are disciplined and patient you will reap the rewards over time.<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">You won\u2019t get rich over night but a small commitment to your wealth creation on a regular basis can make a huge difference over time. The earlier you start the better \u2013 time is your friend.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>4. Superannuation &#8211; out of sight, out of mind<\/strong><\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">It\u2019s surprising how many people don\u2019t know:<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li style=\"list-style-type: none;\">\r\n<ul>\r\n<li>where their super is;<\/li>\r\n<li>how much super they have;<\/li>\r\n<li>how much they need; or<\/li>\r\n<li>how much insurance they are paying for in their super fund.<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Just reviewing your super once a year will make a big difference.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>5. Overcommitting<\/strong><\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">A common example of overcommitting is buying an investment property. You might be able to afford the loan repayments to begin with but you need to consider what will happen if interest rates increase, there\u2019s an unexpected job loss, or change to family circumstances. It is usually not possible to sell a property quickly or just sell 10% of the property to free up some cash.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Borrowing to invest can be a good way to increase your wealth over time, but ensure this does not place unnecessary pressure on your family finances or require compromises to your lifestyle. Ensure you have an emergency cash supply by making sure a portion of your investments are liquid. This means it can be sold quickly if the need arises.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Talk to a financial adviser before committing yourself to a long term financial obligation that might cause a future headache.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>6. Under Insure<\/strong><\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">We all insure our cars and our houses. Your greatest asset however is our ability to work and earn an income. A $100,000 salary for a 40 year old is worth $2.5M (excluding inflation and pay rises) by the time they retire.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Don\u2019t leave you or your family financially exposed to your death, illness, or injury. What you\u2019ve work hard to create does not need to unravel if your income stops.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Be appropriately insured!<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">If you have any questions, please contact us on\u00a0<strong>03 9886 0800<\/strong>\u00a0or via\u00a0<a href=\"mailto:team@tagfinancial.com.au\">email<\/a>.<\/p>\r\n\r\n\r\n<hr class=\"wp-block-separator is-style-default\" \/>\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>What should you do now?<\/strong><\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">For most people, getting started is the hardest step. Here are a few actions that you can take today:<\/p>\r\n\r\n\r\n\r\n<div class=\"wp-block-image\">\r\n<figure class=\"alignleft is-resized\"><img decoding=\"async\" class=\"wp-image-2214\" src=\"https:\/\/www.tagfinancial.com.au\/blog\/wp-content\/uploads\/2020\/05\/icons8-idea-bank-64-1.png\" alt=\"\" width=\"60\" height=\"60\" \/><\/figure>\r\n<\/div>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>Become Money Smart<\/strong><br \/>Build your financial knowledge and\u00a0<strong><a href=\"https:\/\/www.tagfinancial.com.au\/join-our-mailing-list\">join our online community<\/a><\/strong>\u00a0where you will receive TAG updates and invites to our Information Sessions.<br \/><br \/><\/p>\r\n\r\n\r\n\r\n<div class=\"wp-block-image\">\r\n<figure class=\"alignleft\"><img decoding=\"async\" width=\"50\" height=\"50\" class=\"wp-image-2220\" src=\"https:\/\/www.tagfinancial.com.au\/blog\/wp-content\/uploads\/2020\/05\/icons8-handshake-50-3.png\" alt=\"\" \/><\/figure>\r\n<\/div>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>Meet with us<\/strong><br \/>If you would like to discuss the future of your business further,\u00a0<strong><a href=\"mailto:team@tagfinancial.com.au\" target=\"_blank\" rel=\"noreferrer noopener\">contact us to arrange a time.<\/a><\/strong><br \/><br \/><\/p>\r\n\r\n\r\n\r\n<div class=\"wp-block-image\">\r\n<figure class=\"alignleft is-resized\"><img decoding=\"async\" class=\"wp-image-2840\" src=\"https:\/\/www.tagfinancial.com.au\/blog\/wp-content\/uploads\/2020\/11\/icons8-money-bag-100-Copy.png\" alt=\"\" width=\"56\" height=\"56\" \/><\/figure>\r\n<\/div>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>Wealth Projection Tool<br \/><\/strong>Our most powerful tool for wealth creation. TAG\u2019s Wealth Projection Tool will show you how long your money will last, is easy to understand, provides clarity and helps create targets and goals.\u00a0<strong><a href=\"mailto:team@tagfinancial.com.au\">Contact us to arrange a time.<\/a><\/strong><br \/><br \/><em>Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686).<\/em>\u00a0<em>Copyright 2021. Please do not reproduce without the expressed written consent of the author.<\/em><\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>The silly season doesn&#8217;t have to mean silly financial mistakes. At TAG, we\u2019ve compiled a list of the most common financial blunders we see, and some tips on how to avoid them.<\/p>\n","protected":false},"author":1,"featured_media":4979,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,14],"tags":[],"class_list":["post-4969","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment-and-wealth","category-whats-happening-at-tag"],"_links":{"self":[{"href":"https:\/\/www.tagfinancial.com.au\/blog\/wp-json\/wp\/v2\/posts\/4969","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tagfinancial.com.au\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tagfinancial.com.au\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tagfinancial.com.au\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tagfinancial.com.au\/blog\/wp-json\/wp\/v2\/comments?post=4969"}],"version-history":[{"count":0,"href":"https:\/\/www.tagfinancial.com.au\/blog\/wp-json\/wp\/v2\/posts\/4969\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tagfinancial.com.au\/blog\/wp-json\/wp\/v2\/media\/4979"}],"wp:attachment":[{"href":"https:\/\/www.tagfinancial.com.au\/blog\/wp-json\/wp\/v2\/media?parent=4969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tagfinancial.com.au\/blog\/wp-json\/wp\/v2\/categories?post=4969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tagfinancial.com.au\/blog\/wp-json\/wp\/v2\/tags?post=4969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}