Author: Tamila McDonald

10 Common Financial Habits That Annoy the Experts

 

Financial habits play a crucial role in shaping our economic future. While some habits, like a daily latte or occasional shopping splurge, may seem harmless, their cumulative impact on our bottom line can be significant. Even the smallest, routine purchases of $1 or $5 can add up, potentially contributing to chronic debt-related issues. Let’s explore ten common financial habits that not only annoy financial experts but can also hinder your path to financial freedom.

1. Impulse Buying

Snapping up unplanned purchases, whether on sale or not, can lead to unsound spending behaviors. Justifying poor purchasing decisions, using credit cards for impulse buys, and losing track of your budget are common pitfalls. Combat this habit by developing a mantra like “I only buy what I need” and implementing a waiting period before non-essential purchases.

2. Using Credit Cards for Points

While rewards credit cards can be beneficial, they often encourage overspending. Credit card spending activates reward centers in the brain, fostering a craving to spend more. Be wary of credit card reward schemes that may lead to increased debt. If already in credit card debt, consider transferring balances to a lower APR card.

3. Keeping Up With the Joneses

The urge to match your neighbors’ lifestyle, known as “conspicuous consumption,” can lead to overspending. The pressure to impress others often results in unnecessary purchases and compromises financial goals. Remember, appearances can be deceiving, and it’s crucial to prioritize personal financial milestones over societal expectations.

4. Shopping to Boost Your Mood

Retail therapy, or shopping to alleviate stress or boost mood, can become a harmful habit. Repetitive or compulsive shopping may lead to continued spending, irrespective of the emotional, social, and financial consequences. Consider implementing waiting periods before nonessential purchases and seek professional help if emotional spending becomes unmanageable.

5. Spending on Convenience

Overspending for the sake of convenience, such as frequent takeout meals, can hinder debt repayment. Assess your spending habits to identify areas where you can cut back on convenience purchases. Small adjustments, like preparing meals at home, can significantly contribute to reducing unnecessary expenses.

6. Excessive Lifestyle Inflation

While salary increases are expected, excessive lifestyle inflation, where every income increase leads to higher spending, can perpetuate the cycle of debt. Differentiate between needs and wants and avoid increasing spending every time income rises. Redirect additional income towards debt repayment and financial goals.

7. Ignoring Your Debt

Ignoring debt-related issues by avoiding calls from creditors or neglecting bills only exacerbates the problem. Face your financial situation head-on by opening statements, knowing your debt amount, and creating a budget that includes debt repayment plans. Ignoring debt leads to late fees, interest charges, and a deeper cycle of harmful financial behavior.

8. Not Following a Budget

Budgeting is a fundamental tool for financial management. Track your income and expenses, including fixed and variable costs, to gain a comprehensive understanding of your financial situation. Budgeting helps in allocating funds for debt repayment, essential expenses, and discretionary spending.

9. Not Saving Money at All

Even when in debt, saving is crucial. Establishing an emergency fund prevents reliance on credit for unexpected expenses, breaking the cycle of debt. Start small, contribute regularly to savings, and gradually build a financial safety net.

10. Ignoring the Future

Thinking about future goals is integral to breaking the debt cycle. While dealing with debt, envision your future, set goals, and prioritize financial decisions that align with your long-term aspirations. Regularly evaluate and adjust your goals, considering milestones like homeownership, early retirement, or starting a business.

Breaking free from the cycle of debt involves recognizing and altering harmful financial habits. Whether it’s impulse buying, ignoring debt, or succumbing to lifestyle inflation, taking charge and cultivating healthier money habits can pave the way to financial freedom. Remember, progress may be gradual, but the outcome—financial stability and peace of mind—is well worth the effort.

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Market Misery: 10 Stocks That Have Overstayed Their Welcome

 

Navigating the stock market demands careful consideration, especially when confronted with well-known companies that may not be the safest bets. Analyst recommendations serve as valuable indicators, shedding light on stocks that might not be favorable for new investments. Let’s delve into the details of ten such stocks, exploring the reasons behind their less-than-rosy outlook and the challenges they face in the current market landscape.

Intel (INTC)

Intel, a leading chipmaker, currently holds an average recommendation of 2.93 among analysts. Despite its reputation and dividend growth, the global slowdown induced by COVID-19 has cast uncertainty on its future, with analysts divided on its prospects.

Ventas (VTR)

Specializing in senior living facilities and medical office buildings, Ventas (VTR) faces analyst skepticism, earning an average recommendation of 2.96. Challenges in the senior housing segment contribute to the lukewarm sentiment, making it a cautious choice for potential investors.

J.B. Hunt Transport Services (JBHT)

As the foremost player in intermodal shipping, J.B. Hunt Transport Services (JBHT) grapples with softer demand, high inventory levels, and unfavorable industry trends, reflected in its average recommendation of 2.96. The logistics slowdown triggered by the COVID-19 pandemic adds further complexity, prompting most analysts to adopt a wait-and-see approach.

Cognizant Technology Solutions (CTSH)

Cognizant (CTSH), an infotechnology consulting and outsourcing firm, undergoes a turnaround, earning an average recommendation of 3.00. While some analysts express concerns about the impact of COVID-19, others highlight the company’s limited exposure to the travel industry and a potential uplift in employee morale.

Rockwell Automation (ROK)

With a focus on industrial automation, Rockwell Automation (ROK) grapples with sensitivity to a global manufacturing slowdown, resulting in an average recommendation of 3.04. Analysts, including JPMorgan, underscore concerns about an overly optimistic outlook and unattractive valuation.

Comerica (CMA)

Facing a challenging interest rate environment, Comerica (CMA) experiences a decline in net income, earning an average recommendation of 3.08. Analysts emphasize the bank’s vulnerability to further rate cuts and the imperative to grow its loan portfolio to offset margin pressures.

Kraft Heinz (KHC)

Despite being a prominent consumer staples company, Kraft Heinz (KHC) grapples with a substantial debt load and sluggish growth, reflected in its average recommendation of 3.10. Analysts highlight the company’s fallen angel status and question its ability to navigate a competitive market.

Wells Fargo (WFC)

Wells Fargo (WFC) faces challenges from the aftermath of the phony accounts scandal and shrinking net interest margins, contributing to an average recommendation of 3.18. While the settlement with the Justice Department marks progress, analysts caution about the ongoing enforcement actions and the impact of rate cuts.

Walgreens Boots Alliance (WBA)

Walgreens Boots Alliance (WBA) struggles to spur growth in a changing drug retail business landscape, earning an average recommendation of 3.21. Analysts express concerns about the company’s ability to position itself for future success amid macroeconomic challenges and reimbursement cost worries.

General Electric (GE)

General Electric (GE) emerges as another cautionary stock, with an average recommendation of [insert average recommendation]. The company, known for its extensive industrial operations, grapples with challenges ranging from a complex turnaround to debt-related concerns. Analysts express reservations about GE’s near-term prospects, advising potential investors to exercise caution amid ongoing uncertainties in the industrial sector.

In the world of stock investments, staying informed about potential pitfalls is crucial. The cautionary notes sounded by analysts on these ten stocks provide valuable insights for investors looking to navigate the market wisely. While some companies face challenges in adapting to changing landscapes, others grapple with economic uncertainties. As with any investment, thorough research and a nuanced understanding of market dynamics are essential for making informed decisions in the pursuit of financial success.

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The post Market Misery: 10 Stocks That Have Overstayed Their Welcome appeared first on The Free Financial Advisor.

You Can Still Save On Christmas Gifts: Christmas Eve Sales Can Save You Up to 90% Off- Here’s How

 

The holiday season is often hectic, and it’s easy to accidentally overlook the need to buy a gift for a loved one or friend. Plus, last-minute invites to gift-giving celebrations can happen, and if you don’t have a stash of gifts at the ready, you may need to purchase something right before Christmas. Fortunately, even when the answer to the question, “How many days to Christmas Eve?” is “none,” you can still save on Christmas gifts. Here’s how.

Head to Local Retailer Websites

In many cases, the easiest way to find out what’s on sale on Christmas Eve is to check a retailer’s website. Along with online sales flyers, you can see how much a product is discounted as you search for items. Plus, many retailers have special sections on their sites dedicated to holiday sales, and that will take you directly to the deals.

Just be aware that you want to focus on what’s available at local stores in your area. Usually, that means setting your preferred store as your shopping location on the website. Why is this important? Primarily, it’s because it lets you see local inventory levels. Then, you’ll know what’s available if you need to head to the store to get the gift. Plus, you may be able to use a convenient option – like in-store pickup or drive-up pickup – and pay for the item online, streamlining the entire process.

As you shop various sales, make sure to check out the prices of products that catch your eye at other local stores. There’s always a chance a competitor will have a better offer or some kind of bonus – like rewards points on a loyalty card – that makes it a stronger choice.

Start Early in the Day

When you’re trying to get the best deals through Christmas Eve sales, starting your gift search as early in the day as possible pays off. In many cases, retailers have a limited supply of deeply discounted items, so once everything available has been purchased, you won’t be able to get your hands on that gift. Essentially, this is a situation where the proverbial early bird gets the worm.

Exactly how early you want to start may vary by retailer. Some companies may list their bargains online before physical stores open, which is a boon if you want to schedule an in-store or drive-up pickup or simply want a game plan for when you head to the store. However, if the retailer doesn’t publish that information early, you can still increase your odds of getting great deals. Just find out when the store is opening and plan to be there as close to that time as possible.

Check Our Clearance Racks

If you don’t have much luck with the actual Christmas Eve sales, that doesn’t mean you’re entirely out of luck. There’s an excellent standby option that’s always worth checking if you want to find deep discounts: clearance racks.

Clearance racks are where retailers usually have their biggest bargains, and some items there may be up to 90 percent off the original retail price. While the items may be out-of-season technically, that doesn’t mean there aren’t solid gift items there. After all, not everything you give someone needs to be a winter-only item, so approach it with an open mind, and you might find the perfect Christmas present.

With this approach, you may need to head to several stores to see if you can find something suitable, which may make your Christmas Eve a bit hectic. Still, it’s potentially worth the effort if you really want to keep the cost down, so keep this strategy in mind.

Do you usually wait until right before Christmas to shop, or do you like to plan ahead? Do you have any tips that can help people take advantage of Christmas Eve sales or other discounts to get Christmas gifts for less? Share your thoughts in the comments below.

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