If you feel like you keep making the same money mistakes, there's some good news.
By making a few small, practical changes to how you act, you can often fix financial mistakes and make some good changes that are likely to last. Here are four examples.
Stop spending based on how you feel. Before you go to the mall, take a moment to think about how you feel. In a recent study by moneycentral.msn.com, people who had just watched a sad movie clip were more willing to spend than those who had just watched other types of movies.
Remember that shopping isn't the only way to make yourself feel better when you're sad or angry.
Pay off your credit card debt as quickly as you can: Look closely at how much you are paying to your creditors to borrow money. Think about getting a single loan with a lower, fixed interest rate to pay off all your debts at once.
Start making plans for retirement now: You should save money for retirement if you aren't already. A recent study published in USA Today found that 53 percent of people who work don't have a pension and 32 percent don't have any money saved for retirement. If you only plan to rely on Social Security, you might want to change your mind. At the moment, the average payout is only $955, or $11,460 a year. Depending on your work history, it could be even less. You should think about getting help from a financial expert and making a personal financial profile. This can help you figure out how much you need to start saving to reach your financial goals, like retirement, saving for your children's college education, and other goals.
• Be ready for what you don't know: Don't say "it could never happen to me" when it comes to something as important as the financial future of your family. Accidents and health problems that come out of nowhere happen every day to people who don't expect them. Experts at Kiplinger's say that if you are the main source of income for a young family, you should get eight to twelve times your annual income in life insurance. Most experts agree that term insurance is the most affordable type of insurance. "Dollar for dollar, term life insurance gives you the best protection for your money, period," says Kiplinger's.
