Everyone makes money missteps at some point in their lives, whether it’s splurging on unnecessary items or neglecting to contribute to retirement funds as soon as possible. Even financial pros are not immune to making mistakes.
Start With Saving
Although it’s tempting to spend rather than save when you get a paycheck, it’s important to prioritize putting money away into your checking or savings account. On top of that, you should also use the right checking or savings accounts to grow your money.
To make sure your money is earning at its highest potential, you want to pick a high-earning account, like the CIT Bank Money Market Account. This is an excellent option because of a 0.55% APY1 that’s 6x the national average2. Why settle for average when you can reach your savings goals faster?
Along with the strong APY, CIT Bank (Member FDIC) offers a number of other features aimed at making this account hassle-free. There are no monthly service fees and you need a minimum balance of just $0.01 to earn the APY. You’ll need a $100 minimum opening deposit.
For a limited time, CIT Bank will also give you a one-year Amazon Prime membership when you open a Money Market Account3 and meet the specified conditions (click for details).
Avoid Lifestyle Inflation
It’s important to increase your savings rate whenever you start earning more in order to keep growing your net worth.
“Save one-third of every pay raise you get so you don’t succumb to lifestyle inflation,” said Ted Jenkin, a certified financial planner. By starting this practice early in your career, you’ll develop good habits like saving, investing and paying down debts instead of spending it on more stuff you won’t care about in a few years’ time.
Don’t Waste Your Money on Things You Don’t Need
Whether you’ve just received your first paycheck or your first raise, it can be tempting to spend your money on things you want rather than on things you need — but this can be a huge mistake.
“Don’t spend so much money on clothing,” said Michelle Schroeder-Gardner, founder of the personal finance blog “Making Sense of Cents.” “I’ve worked full-time since I was around the age of 14, yet I didn’t really start saving money until nearly a decade later.”
Don’t Buy Things To Impress Other People
Spending on immediate wants can hurt your future needs, said John Rampton, founder and CEO of Calendar.
“Don’t waste your time on expensive cars or gadgets,” he said. “It’s better to save money for the long-term and for things that can keep generating money, rather than taking (your) money.”
Start Investing In Your Retirement ASAP
A GOBankingRates’ retirement savings survey found that 64% of Americans have less than $10,000 saved for retirement. It’s easy to put off saving for retirement when you’re in your 20s, but that’s the best time to start. The sooner you save, the sooner you can take advantage of compound interest. No matter your age, it’s important to prioritize investing in your retirement accounts.
Don’t Fear the Stock Market
Doing something that scares you can be a good thing for your finances. Novice investors are often scared of the stock market, but just by getting started, even on a small scale, you’re furthering your financial life. Learn some of the safer ways to invest for the long term if you’re worried about making mistakes. And the sooner you get started, the better off you’ll likely be.
Now, Invest Even More
“Invest in the market, and lock in gains by purchasing income,” said Tom Hegna, financial author, speaker and economist. “Once you have your basic expenses covered with income, buy more.”
By making wise investments now, you can create income for yourself in retirement to supplement Social Security, allowing you to live a more comfortable life in retirement.
Invest In Yourself
In addition to making financial investments, it’s important to invest in yourself by learning everything you can about personal finance so you can create a financial plan that works for you.
It’s easy to write off personal finance as confusing, but you’re only hurting yourself. The sooner you take the time to learn some money basics, the sooner you can use this knowledge to plan out short- and long-term goals.
Listen To Yourself and Take Action
Figure out your goals, including your financial goals. By doing so, you’ll know exactly what you need to do in order to achieve them. It will also motivate you to stick to your goals and work even harder.
Don’t Waste Time Worrying
And don’t let fear get in the way of going after what you want, said Jen Sincero, New York Times bestselling author and success coach.
“Worrying is praying for what you don’t want, so stop worrying about money and focus on what you do want,” she said.
Remember That Money Isn’t Everything
Although you need money to cover expenses and other life necessities, it isn’t the be-all and end-all. However, that doesn’t mean you shouldn’t ask for what you deserve.
“Ask for more money and learn to negotiate as soon as possible,” said money expert Brittney Castro. “(But) don’t chase money, because it’s not the holy grail. Enjoy it. Make lots of it. But always remember it’s a resource, not an indication of who or what you are in the world.”
Don’t Let Money Define You
Dominique Broadway, a millennial personal finance expert and founder of Finances Demystified, agreed that money doesn’t define you or your success.
“Do not link money with success,” she said. “Money can come and go. Focus on saving and growing your money, and don’t focus on ‘shiny things’ to keep up with other people.”
More From GOBankingRates
- 5 Things Most Americans Don’t Know About Social Security
- Social Security Benefits Might Get Cut Early — What Does It Mean for You?
- 50 Easy Things You Should Do To Save Money
- 31 Dumb Things That Are Keeping You From Being Wealthy
1Money Market interest rates are variable and may change without notice. As of 05/02/2022 Money Market earns 0.55% Annual Percentage Yield (APY) on all balances. A minimum deposit of $100 is required to open the account. Fees may reduce earnings
2Based on comparison to the national average Annual Percentage Yield (APY) on money market accounts as published in the FDIC Monthly National Rates and Rate Caps, accurate as of March 21, 2022.
3This limited time offer of a one-year Amazon Prime membership is available to Customers who open a new CIT Bank Money Market account and enter the promotion code “AMZN22” at the time of account opening. The promotion can end at any time without notice. Customers who are already Amazon Prime members can use the one year of Amazon Prime to renew their membership for an additional year.
Customers will receive a one-year Amazon Prime membership1 provided that the following three requirements are met:
- Open a new CIT Bank Money Market account and enter the promotion code “AMZN22” at the time of account opening.
- Deposit at least $15,000 to the account within the first 15 calendar days following account opening (the “Funding Period”). The $15,000 used to fund the account must come from a funding source outside of CIT Bank. Transfers from existing CIT Bank accounts will not qualify.
- Maintain an end-of-day account balance of at least $15,000 each of the 60 days following the end of the Funding Period. If the end-of-day balance falls below $15,000 at any time during this 60-day period, you will not qualify for the Amazon Prime membership offer.
There is a limit of one Money Market promotional offer per account and per customer. If multiple Money Market accounts are opened, only one account will be eligible. Custodial accounts are not eligible. This offer is non-transferable.
Customers meeting all of the above requirements will be sent an email with instructions on how to activate their one-year Amazon Prime membership. This instructional email will be sent to the email address on file for the primary account owner approximately 30 days after the end of 60-day period specified in requirement #3, above. The account must remain open for the instructional email to be sent.
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