Money Traps to Avoid

Thanks to basenjimom for posting these 10 money traps to avoid!

1) Not having a goal and a plan to achieve it - Our goal is simply to be debt-free in 3.5 years, including the mortgage. We are watching each penny each month and try to keep not to go through so many pennies!

2) Not being willing to change your behaviour - Ok, so this step has been especially hard. It's going to take us a few months to get to the point where we need to be. This weekend, for example, we went out for dinner and drinks Saturday night, went out for lunch on Sunday because we were out school shopping, etc. Tomorrow is our anniversary, so we are going out for dinner alone and without kids, which we NEVER do. Yes, we are struggling with this but I am going to make sure this happens!

3) Not paying off your credit card debt each month - We don't have any credit card debt, so this one is easy.

4) Making only the minimum payment on your credit card debt - Ditto, no credit card debt.

5) Failing to save at all, or to save enough to be realistic - After all bills have been paid, investments have been made, etc., I've committed to putting $500 into a savings account. The remaining balance goes toward debt.

6) Waiting too long to save for long term financial goals - We're not putting away as much as I'd like to be. This will increase tremendously after debt is gone.

7)Failing to take advantage of your employeers 401k plan - I'm taking advantage of this and plan to up my percentage in November.

8) Not having any, or enough, life insurance - We currently have 250,000 on each of us, which I don't think is nearly enough. If one of us goes, the other one better never have to worry about money again. It's on my to-do list to up this amount by quite a bit.

9) Overinvesting in company stock - I currently own some company stock, but if all should go belly up I'll be fine investment-wise. I will NOT be fine salary wise!

10) Letting emotion drive decisions - I've gotten pretty good about this. Pool Boy could use some help, though. Zero turn mower sitting in the garage? I'm pretty sure emotions played a part in that purchase.