Financial Mistakes in Washington DC

Financial security is probably in the minds of most people in Washington DC. Although the majority of the adults realize that they should plan for their future many DC residents just don't not know how. There are some very common mistakes that people make that can have serious consequences in the long run.

Below are the four most common mistakes:

• Failing to pay yourself first.
  
  When you receive a paycheck, before bills are paid or any is spent, you should put a minimum of ten percent into a savings account. Even if you are struggling to pay off debt, you need a way yo ensure that you don't pay off the current debt, only to find that you don't have anything saved to keep you from getting back into debt, possibly deeper ind ebt than you were to begin with
  
  
• If you are like most Washington DC residents, you are carrying credit card balances.
  
  Along with credit card debt comes high interest rates and a diffuclt to break cycle. It is essential to pay off all your debt starting with the highest interest bearing account. In order to do this quickly you must pay down more than the minimum payment every month. Put as much money as possible into eliminating that debt and you will save yourself thousands of dollars in interest payments over the years.
  
  
• Not having an emergency fund.
  
  It's essential to be prepared. if possible you should have 3-6 months cost of living set aside to keep you from adding to your debt problem in the event of an emergency. With today's economy, Washington DC residents need to be prepared for the loss of a job, medical expenses or any other emergency that may come along.
  
  
• Living beyond your means.
  
  In a metropolis like washington DC, the pressure is ever-increasing to "keep up with the Joneses". Neigbors, media, even the government is telling people that they "must have". Unfortunately for many DC residents, this is impossible and they end up paying for vacations, cars and other big ticket items with credit. Avoid using credit. Save for the things you want and pay cash. Avoid the trap of interest making all your purchases cost more.