On Halloween night, you may have been haunted by visions of goblins and ghouls, but a financial fiasco could be a real nightmare. Even if you think you’re on solid financial footing, don’t let these scenarios pull you into the spooky finance zone.
Screams in the Night
Unexpected emergencies abound year-round — not just on All Hallows’ Eve. Like when someone in your family suddenly falls ill (read: vampire bite) and you have to fly cross country immediately. That’s an expensive ticket and a bona fide emergency. But having cash stashed keeps you from going to the dark side and carrying a balance on your credit cards to make the trip. According to the Military Family Advisory Network, 27.4% of currently serving military families have less than $500 saved for emergencies. Don’t let those screams of frustration at being caught short come from your mouth.
Deadly Debt
Don’t let credit-card balances creep up on you. It can put your financial future six feet under. And paying only the minimum balance makes matters worse — you could be paying for today’s purchases for years to come. Kill off those debts quickly. According to Lending Tree, the average APR on new credit-card offers is over 21%. At that rate, you’ll be buried quickly, so beware.
Blood Suckers
Lurking in the shadows, identity vampires try to trick you out of your financial information. Scare them away by checking your credit report for free at annualcreditreport.com. Use anti-virus and malware programs and consider signing up for a credit-monitoring service to stay a step ahead of these evildoers. According to Federal Trade Commission data from a few years ago, active-duty service members were 76% more likely than their civilian counterparts to be the victims of identity theft. Add some precautionary steps (maybe a little garlic), and that could be all it takes to fight off those leeches.
House of Horrors
According to U.S. News & World Report, the median home sales price was $327,667 in August. While interest rates have moderated a bit recently, combine that sales price with an average fixed-rate mortgage above 6%, and things get frightening fast. Being held captive by your home mortgage is scarier than any ghosts or goblins. If you overreach on your home purchase, you could be haunted for years to come. Be prudent and make conservative assumptions as you evaluate a potential home purchase.
Dead Man Walking
Don’t spend your retirement years living like a zombie. Consider building a retirement bunker with Thrift Savings Plan and IRA contributions before it’s too late. According to the 2024 EBRI Retirement Confidence Survey, only 18% of Americans are very confident they will have enough money to live comfortably in retirement. You’ve got to save to be confident, so leverage the key retirement savings tools at your disposal. Start saving today so you can live the retirement dream — instead of a nightmare.
More dreadful than a haunted house tour in a hearse, tales of financial doom aren’t fiction. They’re painful realities. But if you stay on the right path and build financial discipline, you can avoid those tricks and savor the treats.
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