The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • Submit an Article
  • Books
  • Categories
  • Coaching
  • Book Lynnette
  • Money Coach University™
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • Submit an Article
No Result
View All Result
The Money Coach
No Result
View All Result

3 Financial Pitfalls To Avoid At Year-End

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Personal Finance
Reading Time: 4 mins read
financial pitfalls
9
SHARES
146
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

It’s the final quarter of the year and that means it’s also the season when a lot of people do serious damage to their finances.

To avoid becoming a negative financial statistic, make sure you avoid these three financial pitfalls at year-end.

  1. Holiday Overspending

The temptation to spend a lot of money – or even rack up excessive credit card debt – is never greater than the last three months of the year.

Some people go all out with food and holiday decorations, for events like Halloween parties, Thanksgiving Day celebrations, or family dinners and get-togethers during Christmas, Hanukkah or Kwanzaa.

Other individuals go hog-wild buying gifts and presents for family members, friends, colleagues and others. And still others spend gobs of money on holiday travel.

Even if you’re shopping for a big family, visiting relatives who live far away or simply entertaining at home, keep tabs on your overall spending, and don’t overdo it. Set a realistic budget for various categories of your spending so you’ll see where your money is going, and also consider areas where you can cut back.

Finally, resist the temptation to keep buying little extras for yourself during the months of October, November and December simply because you’re thinking: “I worked hard all year, so I deserve it!”

You also deserve to have a life free of financial stress. And you don’t want to have to worry about how you’re going to pay all those holiday bills when the New Year rolls around.

  1. Credit Catastrophes

For many people engaging in lots of year-end shopping, those trips to the mall or to various retailers also pose a danger to your credit health.

During the last three months of the year you’ll get more solicitations than ever to open new credit card accounts, particularly department store credit cards.

You know what I mean, right? I’m referring to all those nice sales clerks – both women and men – who work the cash registers at the stores where you shop. They’ll typically ask you something like: “Would you like to save 10% off your purchase?”

Read: Are You A Financial Train Wreck Waiting to Happen?

By that question, of course, they mean they want you to apply for and use a store credit card in order to finance your purchase.

The problem with this is that when you apply for that store credit card, it generates a hard inquiry on your credit report. That inquiry stays on your credit report for two years, and it counts against you for one year, for the purpose of your FICO credit score calculation.

So not only can a credit inquiry lower your credit score, but a slew of credit inquiries caused by you applying for multiple credit cards during the holiday season can do even more severe damage.

The solution: just say “No” to those department store credit card offers.

  1. Family Loans

If there’s one thing I’ve learned as a Money Coach, it’s that managing your money wisely is largely about managing your emotions and making smart financial choices – even when your heart might be inclined to do something else.

Using your head, and not your heart, is especially tough at year-end when a close friend or relative reaches out for to request money or a loan. Your heart may want to say yes, even if it’s their third, fourth or fifth time needing a loan this year!

Most of us feel reluctant or guilty about saying “No” to family, even to those relatives we know have been financially irresponsible with money. Not to mention that people who are habitual money-drainers often know how to pull at your heart strings or convince you that you are practically their last chance on earth.

So they’ll say things like: “You know I wouldn’t ask if it wasn’t a real emergency” or “I’m only asking you because I’m desperate.”

Once you ask a relative what they need the money for, only you can be the judge of whether it’s a real emergency – or whether you’re really about to fork over money behind some foolishness.

Either way, just be cognizant that during the final three months of the year people with financial problems, especially chronic financial problems, tend to reach out more often for aid.

The solution: Personally, I don’t like to loan money; I’d prefer to give it – but not repeatedly, and only under circumstances where the need is real and valid, not just to subsidize someone else’s poor decision-making or ongoing drama.

For others, I suggest if you’re going to give: do so with a generous heart, and with the understanding that a “loan” might not ever get repaid. Since that’s often the case, it’s wise to only loan what you can afford to give.

Previous Post

The Shocking New Trend With College Internships

Next Post

Advice For College Students To Save Money On Laundry

Related Posts

divorced man sitting on steps

5 Ways to Start Over After Divorce When You Have No Money

by AskTheMoneyCoach

Divorce can be emotionally and financially draining, leaving you feeling lost and overwhelmed. If you're starting over after divorce with little to no money, it can be even more challenging. However, there are steps you can take to rebuild your life and finances. Here are five strategies to help you...

lance-grandahl

Easy Hacks to Make Money From Your Home

by AskTheMoneyCoach UK Edition

With the cost-of-living crisis continuing to stretch household budgets, cash-strapped Brits have been shown how they can boost their income from the comfort of their home. The experts at Quotezone.co.uk have named six savvy ways homeowners could make money from their homes to tackle soaring mortgage rates and general living...

black business woman in front of building

Navigating Divorce When the Woman is the Breadwinner

by AskTheMoneyCoach

Divorce is never easy, but it can be particularly challenging when the woman is the primary breadwinner. This can create financial and emotional stress, as well as societal pressures and expectations. However, with careful planning and communication, it is possible to navigate the divorce process successfully and come out on...

Mini graduation mortar board cap on money -- education cost or scholarship concept

How to Apply for a Pell Grant and Get Money for College

by AskTheMoneyCoach

Are you worried about how you're going to pay for college? A Pell Grant can be a great way to get money for school, and it doesn't have to be paid back. In this article, we'll show you how to apply for a Pell Grant and maximize your eligibility to...

Auto repair shop. Cars open bonnet parked in garage for repair and maintenance service. Car check up at service station. Car waiting for inspection in auto repair shop. Car maintenance and checklist.

How to Find Auto Repair Shops That Offer Payment Plans

by AskTheMoneyCoach

Car repairs can be expensive, and unexpected breakdowns can put a strain on your budget. But don't worry, there are auto repair shops that offer payment plans to help you get your car fixed without breaking the bank. Keep reading to find out how to locate these mechanics and get...

Two businessmen working together, forex diagrams hologram and big business data analysis. Double exposure hologram with candlesticks and chart. Concept of teamwork and trading

The Basics of Forex Trading for Beginners

by AskTheMoneyCoach

Forex trading can be lucrative for anyone willing to put in the effort to learn the basics. While it can initially seem overwhelming, with some knowledge and practice, anyone can become a successful part-time forex trader. This article will cover the ten basics of forex trading that every beginning trader...

Close up African woman outstretched hand, makes stop gesture

The Impact of Structural Inequality on People of Color

by Lynnette Khalfani-Cox, The Money Coach

Many people face challenges when it comes to money, but for African Americans and other people of color, these challenges can be even more significant. This is because there is a huge amount of structural inequality baked into every system within America – including business, educational, government, legal, and health...

Load More

Popular Posts

  • Car repair

    What to Do If You Can’t Afford a Car Repair Bill

    1526 shares
    Share 610 Tweet 382
  • What to Do if Your Spouse Stole Money From You

    1308 shares
    Share 523 Tweet 327
  • What to Do If You Can’t Afford to Leave Your Spouse

    1273 shares
    Share 509 Tweet 318
  • Here’s Why I Pay My Kids For Good Grades (And Maybe You Should Too)

    1129 shares
    Share 451 Tweet 282
  • What Do All Those Strange Codes In My Credit Report Mean?

    899 shares
    Share 360 Tweet 225
  • Which Credit Report is More Important: Equifax, Experian or TransUnion?

    866 shares
    Share 346 Tweet 217
  • Do This Now If Your Wages Were Not Reported

    853 shares
    Share 341 Tweet 213

Categories

  • Bankruptcy
  • Budgeting
  • Building Wealth
  • Careers
  • Couples and Money
  • Coupons and Deals
  • Covid-19
  • Covid-19 Video
  • Credit Cards
  • Credit Reports
  • Credit Scores
  • Crypto
  • Debt
  • Entrepreneurship
  • Family Finances
  • Featured
  • Identity Theft
  • Insurance
  • Investing
  • Loans
  • Paying for College
  • Personal Finance
  • Press Releases
  • Real Estate
  • Retirement
  • Saving Money
  • Scams
  • Student Loans
  • Taxes
  • Uncategorized

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

RSS / Sitemap /Submit an Article / Privacy Policy / LynnetteKhalfaniCox.com

No Result
View All Result
  • Books
  • Categories
  • Contact Lynnette
  • Get Coaching
  • Book Lynnette
  • Money Coach University™
  • Home
  • Subscribe to Newsletter
  • Submit an Article

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist