April Fools' Day Financial Blunders Are You Making These Foolish Money Mistakes?

April Fools Day is a time for fun and pranks, but when it comes to money, some mistakes are no laughing matter. Here are some common foolish money mistakes people make, along with some solutions to help you out:

Mistake: Not having a budget

Knowing where your money is going and how much you want to spend each month is important to setting yourself on the path to financial wellness. 

Solution: Create a financial plan to help you prepare for your short- and long-term goals. Make sure you do your best to stick to your budget. 

Mistake: Not being aware of excessive and unnecessary spending:

Did you know spending just $20 per week adds up to more than $1,000 dollars over the course of a year? That’s money you may rather put towards savings or paying off debt. 

Solution: Be intentional with your spending and avoid unnecessary costs where you can. Give yourself time to think about a purchase before you make it.

Mistake: Losing track of unused subscriptions:

It’s hard to not to subscribe to at least one or two things and it can be even harder to keep track of what you’re paying for and if you’re getting the value for your dollar. 

Solution: When you start a subscription, log it in your budget and set a calendar reminder for the renewal date. That way you can easily see a list of what you’re paying for and evaluate which subscriptions are worth having. Cutting back on even one or two for you and your family could easily save you $10 - $25 per month.

Mistake: Not taking advantage of services you already have:

Just like it’s important to cancel unused subscriptions, it’s important to take advantage of the services you have. If you don’t you could be leaving money on the table. 

Solution: Get comfortable asking “what benefits should I know about?” Some workplaces offer healthy living credits, 401(k) matches, tuition reimbursement, and more. Some libraries and resource centers offer items like seed packets, national park passes, creator spaces, and digital magazine and video subscriptions. Did you know ACNB Bank offers our Advantage Rewards and Advantage Rewards Plus Checking customers deals and discounts, roadside assistance, cell phone protection, ID Theft Aid with Credit & Identity Monitoring and more. 

Mistake: Not paying the minimum balance on credit cards:

If you have a credit card balance, try to pay the balance off on a month to month basis. If you’re unable to, try to make more than the minimum payment. Paying the minimum payment will mean you’ll be paying off that debt over a longer period of time. 

Mistake: Ignoring your credit report or not improving a bad credit score

When was the last time you checked your credit score and report? Do you have a plan to make improvements? Having a low credit score can affect you in a lot of different ways including higher interest rates on mortgages and loans a harder time qualifying for additional credit, rentals, and more.

Solution: Check your credit score and report on a regular basis. Make sure the information is accurate and report any errors that need to be corrected. Then, plan to pay down or pay off your credit cards. It’s not easy, but it can have a big impact. 

Mistake: Not saving for retirement:

Retirement can feel like a long time from now, but time is one of the most valuable parts of a strong savings strategy. Not having a plan for how to start or increase your retirement savings can put you behind.

Solution: Find out if your workplace offers a 401(k) or other retirement plan and what type of match is available. If you can, budget an automatic contribution to your retirement account from your paycheck. Think about how you can increase this amount each year and if you get a bonus or promotion.  Every little bit goes along way over the course of your working career.