The 7 Deadly Sins of Personal Finance

You’re familiar with the seven deadly sins, right?

Let’s see, we’ve got greed, lust, gluttony, sloth, wrath, envy and pride.

(Some of these are more fun than others.)

Ah, but what about the seven deadly sins of personal finance? These are the toxic money mistakes that are dragging you down and keeping you from building the wealth that you deserve.

We’ve identified seven common financial sins — along with powerful solutions for each of them. Not all these tips may apply to you, but some will, so make sure to read them all.

Go forth and sin no more.

1. You’re keeping all your eggs in one basket

Putting all your money in one place — stocks, bonds, crypto, whatever — is a recipe for losing wealth, not building it. Diversification is key to financial security. Here’s an easy way to start: Buy gold and/or other precious metals. Those investments typically do well when the stock market decides to tumble.

Be careful who you deal with, though. Not all gold dealers are on the up-and-up, and some of them are only too happy to sell you gold and silver at vastly inflated prices.

Oxford Gold Group, on the other hand, has a 4.9-star rating (out of five stars) on Trustpilot, where 95% of reviewers call the company “excellent” and 4% call it “great.” It also has an AA rating with the Business Consumer Alliance and an A+ rating with the Better Business Bureau.

They’ll allow you to invest in a gold IRA that adheres to IRS regulations. They also offer gold bars and coins, as well as silver (including silver IRAs), platinum and palladium.

If you’ve ever thought of investing in gold, give Oxford Gold a try.

2. You’re going it alone

To properly manage your money, work with a professional — it’s totally worth it. If you’re not doing this, you could be missing out on some serious financial gains.

A Vanguard study found that, on average, a hypothetical $500,000 investment over 25 years would grow to $1.7 million if you manage it yourself, but more than $3.4 million if you work with a financial adviser. That’s twice as much!

If you’ve got at least $100,000 in investments, check out a free service called SmartAsset. You fill out a short questionnaire and instantly get matched with up to three vetted financial advisers in your area, all legally bound to work in your best interests.

Even if you don’t want help picking investments, an adviser can help lower your tax burden, create a comprehensive financial plan for you, maximize your Social Security, and serve as a second pair of eyes to make sure you’re on the right track.

Using SmartAsset only takes a few minutes, and in many cases you’ll be offered a free consultation.

Please carefully review the methodologies employed in the Vanguard white paper, “Putting a value on your value: Quantifying Vanguard Advisor’s Alpha.”

3. You’re paying too much credit card interest

The average credit card interest rate these days is approaching 25% — a record high. Sounds like what a loan shark would charge, doesn’t it?

Never borrow recklessly, but when it’s time, do it right. Take advantage of much lower rates by borrowing against your home. Use that loan — with rates as low as 6.75% — to fix up your house, to pay off high-interest debt or for any other purpose (besides financing a lifestyle you can’t afford).

That’s a fraction of what credit cards charge, and will literally save you thousands of dollars over the life of the loan.

How do you shop for the best deal? Simple: Head to a loan shopping site like Rocket Mortgage. They’ve eliminated most of the hoops you had to jump through in the past, so it only takes a couple of minutes to see how much you could get.

4. You’re not planning ahead

Here’s hoping your retirement years are active, healthy and vibrant, and that you’re able to function as you always have, right up until the time you shuffle off this mortal coil.

But don’t bet on it. According to the U.S. Department of Health and Human Services, seven in 10 people who turn 65 today will probably need some kind of long-term care.

“But won’t Medicare take care of all that?” Nope. Medicare doesn’t cover long-term custodial care — and paying for it out of pocket could take a huge chunk of your retirement savings. That, plus inflation, could mean near or total depletion of your nest egg.

Without long-term care insurance, your options aren’t great: running through savings, borrowing money, burdening your family with your care, and possibly losing independence because you can’t live on your own.

One place to find long-term care insurance is GoldenCare. (GoldenCare is not currently available in Florida.)

At least check it out and see if it’s a fit. Because planning now could mean a more secure tomorrow.

5. You’re paying way too much for car insurance

If you’re like most Americans, you’re probably paying too much for car insurance. But shopping around for a better deal is such a hassle.

Well, it used to be.

Now you can just check out Provide Insurance, the largest online marketplace for insurance in the U.S. Provide Insurance lets you compare quotes from more than 175 different carriers in minutes.

All you have to do is answer a few questions about yourself and your driving history. Then Provide will show you the best options for your needs and budget.

You could save up to $610 a year on car insurance by using Provide Insurance. That’s money you could use for other things, like investing, saving or paying off debt.

Don’t let your current insurer overcharge you. Try Provide Insurance today and see how much you can save on car insurance.

6. You’re paying full price

Are you over 18? Then you’re eligible to save hundreds of dollars every year simply by joining AARP.

“What?” You say, “I thought AARP was for retired people.”

As it turns out, you don’t have to be 50 or older to join AARP. And members get discounts on hundreds of things, like:

• Up to $200 per person off flights
• Up to 30% off rental cars
• Up to 15% off restaurants
• Up to 20% off hotels

You’ll also save on eyeglasses, prescriptions, meal deliveries and lots more. And that’s not all. AARP offers a Fraud Watch Network, job listings, retirement planning tools, games, and tons of information, programs and resources.

Anyone trying to save money can’t afford not to join AARP, especially since the cost is as low as $12 per year with auto-renewal. You’ll likely recoup the cost in the first week.

7. You’re not earning enough on your savings

If you’re banking at a traditional brick-and-mortar bank, you’re getting ripped off because your money isn’t growing there at all. They’re paying you puny amounts of interest because you’re paying for their overhead.

Instead, consider switching to an online bank like SoFi, which offers one of the highest interest rates we’ve ever seen – and they’ll give you a cash bonus just for signing up!

SoFi offers a combination checking-and-savings account, with the best of both worlds. If you set up direct deposit, you’ll earn a whopping 4.50% APY on your money, which is 10 times the national average.

If you direct-deposit $5,000 in the first 25 days, you’ll get a $250 bonus. If you direct-deposit $1,000 to $5,000, you’ll get a $50 bonus.

Other cool features: You’ll get paid up to two days early. You’ll never pay overdraft fees or monthly fees. You can use 55,000 ATMs for free. You get free paper checks if you want them. Your deposits are insured up to $2 million. And you’ll earn up to 15% cash back using your debit card.

It’s time to leave your old bank behind and check out a smarter option like SoFi.

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