According to tradition, if the groundhog comes out of its hole on this day and sees its shadow, it gets scared and runs back into its burrow, predicting six more weeks of winter weather. No shadow means an early spring. It’s the same tradition every year, and if we’ve learned anything from the 1993 Bill Murray classic movie, it’s that the day can also repeat itself, over and over, until you figure out a way to break the cycle of your mistakes.
The same applies to financial mistakes that can be made year after year. Here are some tips to stop the cycle, get on the right financial track, and avoid a Groundhog Day scenario of your own.
?? Don’t put EVERYTHING on your credit card Some consumers tend to put too many expenses on their credit cards which typically come with high APRs. The average credit card APR is just over 24%. If you carry balances month to month, this can get you deeper into debt making them harder to pay off.
?? Don’t let the Holidays Destroy Your Budget During the holidays, it's easy to forget that the new year is just around the corner with its own set of expenses. Try to budget for both the holidays and day-to-day life.
?? Don’t Pay Your Bills Late Life gets hectic, but even one late payment can hurt your credit score. Consider setting up automated payments through your checking account so that you don’t accidentally miss any payments.
?? Don’t Overdraft Your Bank Accounts To keep up with your bills, it may be tempting to overdraft your bank accounts. However, you can end up paying overdraft fees which can cost you even more money. If you sign up for online and mobile banking, you can sign up for alerts that notify you when your balances are low. You can also turn off overdraft protection so that your account isn’t over drafted so you don’t pay those fees.
?? Save If you’re living paycheck to paycheck, putting money away for saving can seem daunting. But, having a savings account – even a small one – can serve as a buffer if you have a financial emergency.
?? Monitor Your Credit Having negative information on your credit reports can keep you from getting approved for a loan, cause you to pay higher interest rates, or get turned down for a job. You can request a free credit report at www.annualcreditreport.com.
Keeping track of your finances may not prevent six more weeks of winter, but not trying not to repeat these mistakes might prevent your from reliving your own Groundhog Day. #groundhogday #springorwinter #punxsutawneyphil #financialplanning