Credit Card Myths That Are Costing You Money

One of the most popular financial tools in use today is the credit card, and when used correctly, they can be quite beneficial. Your Clovis financial advisor says, there are a few credit card misconceptions, though, that may wind up costing you money. The following credit card myths should be dispelled:

1 –  Minimum payments are sufficient: A lot of people think they are in good standing as long as they only make the minimum payment on their credit card. This is untrue, though. You will incur interest if you simply make the minimum payment, which can soon build up and cost you considerably more than the original purchase price.

2 – Closing a credit card will raise your credit score—can instead lower it. Your available credit decreases when you shut a credit card, which may result in a higher credit use rate. High use might affect your credit score because this ratio contributes significantly to credit scoring.

3 – Only carry a balance on cards with 0% interest: Carrying a balance on a card with 0% interest can seem like a smart idea, but it might wind up costing you money. You can be faced with a high interest rate when the 0% interest term expires, and you will be required to pay interest on the whole debt, not just the remaining balance.

4 – Rewards cards are consistently worthwhile: The ability to earn cash back or points with rewards cards is nice, but they sometimes have outrageous annual fees and interest rates. If you lack the self-control to pay off your amount in full each month, the benefits might not be worth the additional fees and interest.

Conclusion

In conclusion, debunking credit card misconceptions is essential to maintaining good financial status. You may save money and raise your credit score by avoiding these widespread myths. Always make more than the minimum payment, keep old credit cards open, settle accounts in full, and carefully analyze reward card annual fees and interest rates.

Are you trying to find a financial advisor in California? Look no further than Soutas Financial & Insurance Solutions Inc. your financial advisor in Clovis Ca is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment strategies that focus on Asset Protection, Long-Term Care Strategies, Legacy Planning, Tax- Efficient Strategies IRA, 401(k) & 403(b) Rollovers, Life Insurance, Annuities, Medicare, we can help you develop an overall retirement income strategy specific to you and your family.

We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!

Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser. The commentary on this website reflects the personal opinions, viewpoints, and analyses of the author, Soutas Financial, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security, or any security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Foundations deems reliable any statistical data or information obtained from or prepared by third party sources that is included in any commentary, but in no way guarantees its accuracy or completeness.

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Setting the Record Straight About Emergency Funds

Financial advisors have direct experience with the value of emergency savings. Having a safety net in place might be crucial since unplanned costs can happen at any time. However, there are a lot of myths out there about what an emergency fund should be and how to create one. Let’s eliminate these misunderstandings.

Introduction to Emergency Funds

Selma is a financial advisor that focuses on assisting clients in accumulating and managing their money. Our team of professionals is committed to provide individualized financial guidance to assist our customers in reaching their financial objectives. Building an emergency fund is one of the most crucial elements of financial planning.

A separate account set up just for unanticipated expenses is known as an emergency fund. This may involve expenses for things like medical care, auto repairs, or job loss. An emergency fund serves as a safety net for your finances in case of unforeseen events.

The Importance of Emergency Funds

Financial stability depends on having an emergency fund. Without one, unforeseen costs may result in debt and other forms of stress. So that you may concentrate on your long-term financial objectives, it is crucial to have a plan in place for unforeseen costs. You feel more at ease knowing you have an emergency fund.

A Smart Approach to Emergency Funds

Your Selma Financial Advisor thinks that everyone should prioritize having an emergency fund. We advise our clients to keep an emergency fund with at least three to six months’ worth of living costs in it.

However, we are aware that setting up an emergency fund might be difficult. Because of this, we tackle each person’s circumstance uniquely.

Common Misconceptions About Emergency Funds

Many individuals don’t create emergency funds because of misunderstandings about them. The idea that an emergency fund should only be used for serious emergencies is among the most widespread ones.

Actually, you should use your emergency fund for any unforeseen costs that would jeopardize your ability to pay your bills. This can involve paying for items like a car repair or a doctor’s visit.

A money market fund or savings account that offers low risk and convenient access should be used to store an emergency fund.

Tips for Building an Emergency Fund

Begin modestly: Set aside a little sum of money each month to start. It’s a start, even if it’s just $20.

Find strategies to reduce spending, such as cutting back on dining out or canceling subscriptions.

Set up automatic payments from your checking account to your emergency fund to increase your savings.

Over time, boost your savings: As your income rises, raise the amount you set aside each month.

Don’t touch the fund: Refrain from spending money from your emergency fund on things that are not emergencies.

Conclusion

Are you trying to find a financial advisor in Selma? Look no further than Soutas Financial & Insurance Solutions Inc. your financial advisor in Selma Ca

is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment strategies that focus on Asset Protection, Long-Term Care Strategies, Legacy Planning, Tax- Efficient Strategies IRA, 401(k) & 403(b) Rollovers, Life Insurance, Annuities, Medicare, we can help you develop an overall retirement income strategy specific to you and your family.

We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!

Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser. The commentary on this website reflects the personal opinions, viewpoints, and analyses of the author, Soutas Financial, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security, or any security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Foundations deems reliable any statistical data or information obtained from or prepared by third party sources that is included in any commentary, but in no way guarantees its accuracy or completeness.

The post Setting the Record Straight About Emergency Funds appeared first on Soutas Financial.

source https://soutas.com/setting-the-record-straight-about-emergency-funds/

The Dark Side of ‘Good’ Debt: What You Need to Know

It has been observed several customers who have gotten into the ‘good’ debt trap in my capacity as a financial advisor in Madera. Contrary to popular belief, not all debt is bad; in fact, some forms of debt might be good for your financial stability. However, good debt may easily become a nightmare if it is not well handled. This essay will discuss the negative aspects of good debt and what you need know to stay clear of its consequences.

Introduction to Good Debt

Let’s first examine what good debt is before delving into its drawbacks. Any form of debt that might aid in wealth creation or boost your net worth is considered good debt. Mortgages, company loans, and student loans are a few instances of positive debt. These debts can assist you in starting a business, purchasing a home, or investing in your education, all of which can ultimately lead to financial success.

Understanding the Dark Side of Good Debt

While good debt might seem to be advantageous, if it is not managed properly, it can also result in financial catastrophe. The tendency to create a false sense of security that comes with good debt is one of its main drawbacks.

Steps to Take Control of Your Debt

If you’re ready to take control of your debt, consider taking these steps:

1. Identify Your Debt: The first step to getting out of debt is to identify exactly how much debt you have and what types of debt you have. This will give you a clear picture and help you create a plan to pay off your debt.
2. Create a Budget: Once you know how much debt you have, the next step is to create a budget. A budget will help you identify areas where you can cut back on spending and free up money to put towards paying off your debt.
3. Prioritize Your Debt: Not all debt is created equal. Some types of debt, such as credit card debt, have higher interest rates than others, and should be prioritized for repayment. Make a plan to pay off your high-interest debt first, while continuing to make minimum payments on other types of debt.

Common Mistakes to Avoid

When it comes to managing debt, there are some common mistakes that people make that can make their situation worse. Some of these mistakes include:

1. Ignoring Your Debt: Ignoring your debt will only make the situation worse. The longer you wait to address your debt, the more interest you will accrue, and the harder it will be to pay off.
2. Continuing to Use Credit Cards: If you are trying to pay off your credit card debt, continuing to use your credit cards will only make the situation worse. Put your credit cards away and focus on paying off your debt.
3. Not Having a Plan Without a plan, it is easy to fall back into old habits and accumulate more debt. Make sure you have a plan for paying off your debt and stick to it.

Conclusion

In conclusion, good debt can be a helpful tool for building wealth and increasing your net worth, but it can also be a double-edged sword. If you are not careful, good debt can quickly turn into a nightmare, leaving you with a mountain of debt and no way out.

Are you trying to find a financial advisor in Madera? Look no further than Soutas Financial & Insurance Solutions Inc. your financial advisor in Madera Ca is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment strategies that focus on Asset Protection, Long-Term Care Strategies, Legacy Planning, Tax- Efficient Strategies IRA, 401(k) & 403(b) Rollovers, Life Insurance, Annuities, Medicare, we can help you develop an overall retirement income strategy specific to you and your family.

We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!

Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser. The commentary on this website reflects the personal opinions, viewpoints, and analyses of the author, Soutas Financial, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security, or any security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Foundations deems reliable any statistical data or information obtained from or prepared by third party sources that is included in any commentary, but in no way guarantees its accuracy or completeness.

The post The Dark Side of ‘Good’ Debt: What You Need to Know appeared first on Soutas Financial.

source https://soutas.com/the-dark-side-of-good-debt-what-you-need-to-know/

3 Financial Myths You Need to Stop Believing Right Now

Do you have trouble keeping track of your finances? Do you frequently feel overburdened and unsure of yourself when it comes to money? It’s not just you. Many people are duped by financial myths that could result in bad choices and shaky financial situations.

In this post, your Visalia financial advisor would like to dispel three widespread financial myths that you should immediately stop believing. So whether you’re just getting started with managing your money or you’ve been doing it for a while, read on to find out how to dispel these false beliefs and finally get control over your funds.

Myth #1: Investing is only for the rich

The idea that investing is reserved for the wealthy is one of the most pervasive financial misconceptions. The media, which frequently focuses on tales of wealthy investors earning huge gains on the stock market, frequently supports this myth.

The reality is that everyone can invest, regardless of their level of income. In actuality, one of the most effective long-term wealth-building strategies is investing. You may be able to get returns from investments that are greater than those from savings accounts or other conventional kinds of saving by investing your money in stocks, bonds, mutual funds, or other types of investment vehicles.

Myth #2: Credit cards are always bad

The idea that credit cards are always harmful is another prevalent financial misconception. While it’s true that using credit cards irresponsibly might put you in danger, they can also be a useful tool for managing your finances.

For instance, several credit cards include rewards programs that let you accumulate cash back, points, or miles for each dollar you spend. You may quickly accrue points if you use your credit card for regular expenses like fuel and groceries, which you can then apply to vacation, presents or other costs.

You may show creditors that you’re a dependable borrower and raise your chances of getting future loans or credit by making on-time payments and maintaining a low debt.

Myth #3: Saving is only for emergencies

Many individuals think that saving money is only important for emergencies, including job loss or unanticipated medical costs. This is a hazardous misconception, though, as it may result in missed opportunities and financial instability.

Regular saving will enable you to create a solid financial base that will support your goals and enable you to weather any financial storms that may arise. Having money set aside may provide you peace of mind and prevent you from sliding into debt, regardless of whether you’re saving for a retirement, vacation, or down payment on a property.

How to Break Free From Financial Myths

Here are some pointers to get you started if you’re prepared to bust financial myths and take charge of your finances.

Learn more about personal finances; the more you know, the more able you’ll be to make wise selections.

Establish a budget: The basis for sound money management is a budget. You may find places to cut back on spending and establish spending priorities by keeping track of your income and costs.

Consult a professional: A financial advisor, accountant, or credit consultant can assist you in developing a strategy that is suitable for your particular circumstances.

Conclusion

Myths about money may be risky, resulting in shaky judgement and unstable finances. You may make more informed financial decisions and regain control of your finances by dispelling these myths and concentrating on the facts and figures. Do not forget to educate yourself, make a budget, save consistently, and, if required, seek expert guidance.

Are you trying to find a financial advisor in Visalia? Look no further than Soutas Financial & Insurance Solutions Inc. your financial advisor in Visalia Ca is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment strategies that focus on Asset Protection, Long-Term Care Strategies, Legacy Planning, Tax- Efficient Strategies IRA, 401(k) & 403(b) Rollovers, Life Insurance, Annuities, Medicare, we can help you develop an overall retirement income strategy specific to you and your family.

We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!

Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser. The commentary on this website reflects the personal opinions, viewpoints, and analyses of the author, Soutas Financial, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security, or any security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Foundations deems reliable any statistical data or information obtained from or prepared by third party sources that is included in any commentary, but in no way guarantees its accuracy or completeness.

The post 3 Financial Myths You Need to Stop Believing Right Now appeared first on Soutas Financial.

source https://soutas.com/3-financial-myths-you-need-to-stop-believing-right-now/