The Top 4 Financial Blind Spots Eating Your Income

Whether you are working or rely on income from your business, investments, or retirement fund, at the end of each month, you will often ask yourself: where did my money go?

This question is something that torments a lot of people not just monthly but even weekly. If this same enigma also regularly bothers you, as early as now, you may start worrying about your finances in the future, once your regular source of income stops or dries up.

Where Your Money Goes To

In general, you spend a large chunk of your monthly income on your housing, transportation, and food requirements. But there are some other things that could be eating up your money as well. These top 4 financial blind spots are:

1. Loans. These include car, mortgage, and educational loans and credit card debts. Carrying credit card debts, especially if you only make the minimum payments every month, is a bad move that can cost you thousands and lower your credit score.

2. Insurance. Life, medical, travel, and other personal insurance account for only 0.6% of the average budget. Getting a lower rate is easy; as such, there’s no reason for you to not do so.

3. Taxes. If you don’t itemize your tax return, you won’t be able to claim every last deduction you can. Not doing so is just handing that money over to the tax collectors.

4. Entertainment. A lot of people pay thousands of dollars annually for premium cable subscription. You can save money by ditching cable television since the cost is pretty extreme when there are free or less expensive options.

Info source: www.perthfinancialplanning.com