9 financial errors that must be avoided, according to experts
propagandaThere are many complications that can be brought on the way to financial goals. They may have to rejectYou must face unexpected expenses or you are Savings They are affected by economic stagnation. Although some things are out of control, financial landmarks are usually lost through errors that can be avoided. In some cases, The savings are not even realized Where are they wrong?
According to the last survey of Eurobarómetro On this topic, 18 % of European Union citizens show a high level of financial knowledge. 64 % have an average level and 18 %, low.
Only a quarter of the respondents answered at least four out of five questions About financial knowledge. Do you want to be smarter with your money, but don’t know how? “Euronews” collected some simple financial errors that should be avoided, which were collected from conversations with experts.
1. You don’t have much money
“Maintaining the emergency is logical.” But then, large amounts of money loses value over time, “says Andeland, BlackTower’s financial management spokesman.
Maintaining money in the bank account, instead of investing in stocks and bonds, means that The purchase force diminishes with enlargement. For this reason, long -term goals usually need a set of cash and investment strategies.
2. Do not delay retirement planning
“Waiting for pension planning means losing the most valuable assets: time,” Andy Newland adds, which confirms that time investments must be given to growth. “the Early contributions – Even you are small- they have a greater effect of large quantities added later. The more it is launched planIt will be the largest flexibility and potential benefit. ”
This is partly due to the complex interest. This means that he will only earn more than his original savings, but will generate interests on the attention that has already been obtained. Savings in the pension box can be tantamount to tax relief, and it may also be Benefit The company’s contributions through a pension in the workplace.
3. Do not ignore the tax effects
Financial standards differ from one country to another, and their understanding can be complicated if you are not an expert. However, the proactive approach to financial planning can allow you to be smarter with your money, as you can make the most of Financial discounts available.
“This is especially true when you live or work in another country,” says Andy Newland. Although there are many free tax advice on the Internet, experts advise to contact a consultant to obtain the most reliable information.
4. Do not ignore credit health
The degree of credit is a number indicating its reliability when ordering the borrowed money. Depends on your Financial historyEspecially in how to manage his bills and debts in the past.
“Credit grades not only affect loans: it can affect housing, employment and insurance. Periodic checks and simple procedures such as payment on time, reduce unnecessary credit and correct errors can make a big difference,” says Andy Newland.
5. Do not invest without a strategy
When getting money from savings accounts, experts also say that Choose the investments well. “Investment is easier than ever, but the platforms do not replace planning,” Newland says. “It behaves according to directions or advice in social networks or fear of losing something usually leads to bad results.
The investment works better when doing it in some way Organized, consistent and alignment With long -term goals. “For those who start investing, banks can provide custom investment and investment services. Investment in funds that reflect the main indicators can be a fairly safe option, because these products offer a wide exposure to the market.
6. Do not forget the expenses of budget and control
Many people “take an emotional matter from him who know their financial situation Better than you really know“Euronews” Sebastian Franke, an economist for consumption, referred to a survey conducted by Eng in 2022, in which more than half of the respondents agreed on the statement: “I am good in managing my money. “Only 16 % of respondents in seven European countries do not agree to the statement.
However, when the respondents asked what they really did to control their financial resources, the most common answer was: “I use my memory or my instinct,” Frank said. Consumers suggest making a file Expenses To avoid it The expenses of the rush. Frank explained that renewable credit cards, plans “purchase and payment later”, and that the financing of zero benefits are also dangerous areas, because consumers may not be aware of the amount of debts they accumulate.
propaganda7. Do not fall into mental accounting
When it comes to doing a budget, Frank explains that consumers are usually Irrigation decisions Create mental posters for money, instead of declining to see a general view. In other words, people usually deal with money differently depending on factors such as their planned use or origin.
“Think about providing 25,000 euros to spend a holiday in a dream they want to do within 5 years in the savings account that pays 3 %, then purchased a car of 25,000 euros with a 5 -year loan with a rate of 7 %.” The smartest thing will be to take the money from the savings of the car, instead of requesting LiterateAlthough this means saving again for holidays.
8. Emotional investment decisions do not make
Keep firmly and do not take Hasty decisions Jake Barber, Global SJB investment advisor, says when the investment is also important. In 2020 and 2022, many of our customers told us that they wanted to filter all their money in cash.
This is the worst decision that they could make … one wants to buy in bad news, “explain. When selling money when the market drops, investors prevent losses, when the indicators rise again at some point. Buy when the prices are low can be a long -term long idea, because the purchase costs will be low and can benefit from profits.
propaganda9. Do not try to go to the market
However, this does not mean that he must enter and leave some values as an investor without experience, says Barber. “The market is difficult to do for someone who does this as a full -time work … like someone without experience, You should not buy individual valuesAfter that, you have to know when it is time to buy and sell. Buy, for example, the global index will be much easier. “
We remind you that the information in this article does not constitute a financial advice; Always check on your own to ensure that it fits your specific circumstances. Also remember that we are a journalistic website and our goal is to provide the best evidence, advice and advice from experts. If it is based on the information on this page, it does it under its own responsibility.
