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How many of these money mistakes do you make? Free advice available – InsuranceNewsNet

Money management is not easy. Otherwise, we’d all be perched on piles of cash, counting our money.

But there are steps you can take to improve your financial health.

New Berlin’s Lucas Kraft is a certified financial planner, chartered alternative investment analyst, and volunteer president of the Financial Planning Association of Wisconsin, which is hosting a free financial planning day Saturday, October 8 at The Ridge Community Church in Greenfield. Kraft shared what he considers the five biggest mistakes people make when it comes to managing their finances.

1. Spending more than you earn

In other words, living beyond your means. To have any kind of financial success, Kraft said you have to do the opposite. “You need to spend less than you earn and save as long as you can, and that’s where the power of compound interest and investing can create that millionaire next door,” he said. “You don’t need to earn $1 million to do this.”

2. Not having an emergency fund

Kraft said he recently had car trouble and had to take his car to the store. He paid for it out of his emergency fund. Kraft said many people relied on credit and debt instead of having three to six months of expenses — or even “a few thousand dollars” — set aside to cover unexpected expenses. “And the power of this emergency fund, the psychological power is important,” he said, “but also financially, and not having to rely on credit card debt or credit to get out of an emergency”.

3. Only make minimum payments on credit card debt

This is a fundamental problem, Kraft said, and depends on your cash flow, but it’s a scenario he sees happening again and again. People only make the minimum monthly payments on their credit card debt, thinking this will remedy the situation. Why people do it is a “loaded question,” Kraft said. Some are just too skinny to pay more than the minimum. For others, it’s a matter of non-education, and they dig a deeper hole. But Kraft said personal life decisions also play a role. “Like do I want to go out and have a fancy dinner, or do I want to make an extra payment of $60, $80 on my credit card, which doesn’t seem like a lot, but when you pay 20- plus a percentage interest, it can obviously work against you.”

4. Failing to plan major purchases

Whether it’s college, a new vehicle or another big-ticket item, Kraft said planning those purchases — or not planning — can really help or hurt. “Sometimes people know they’re going to have to, sometimes years in advance – whether it’s a car or college or whatever, a bigger purchase – and (they) don’t start saving. or don’t start They go straight for financing, get into debt, and it ends up eating away at their monthly budget and their ability to create wealth.

5. Inconsistency in savings

The way compound interest works is that you have to do it regularly, Kraft said. You have to save and save money and do it consistently. “Those who are able to make good financial decisions, save decisions, and do it consistently over a long period of time, that’s where compound interest comes in, and that’s really where the people can win with money, as opposed to, hey, I’ll do it this month, not next month or I’ll make it when I can,” Kraft said. “But then you also have certain fads or stocks of memes, or even higher risk stuff that people go into or go in and out of, and it hurts them in the long run.”

Learn more

These topics and more will be discussed on October 8 during Financial Planning Day at The Ridge Community Church, timed to follow World Financial Planning Day, celebrated on the first Wednesday in October.

Special sessions will be aimed at teens and help them explore how their decisions about college, career, budget and savings will affect their lives.

“Decisions adolescents must make early in life can have implications that affect them for decades,” Kraft said. “It’s so important that all teens have the opportunity to be exposed early to concepts that will ultimately result in financially independent living.”

Parents and guardians are welcome to join the teen sessions.

For adults, classroom-style workshop sessions will provide insight into key topics such as Social Security planning, introduction to investing, managing credits and debits, and budgeting.

There will also be breakout sessions where attendees can meet one-on-one with a financial planner to discuss their personal goals and how to achieve them.

All services are provided free of charge.

The event, which includes a free lunch and raffle prizes, is free with registration.

Free Financial Planning Day

When: 10 a.m. Saturday, October 8

Where: The Ridge Community Church, 4500 S. 108th St., Greenfield

Sponsor: Financial Planning Association of Wisconsin

Price: Free upon registration. To register, visit bit.ly/3dcXSEi or call 414-343-9126. The deadline for registration is October 5.