We all know to check our blind spots while driving to help prevent accidents which are not in our direct line of sight. Blind spots also exist when it comes to our financial well-being. Like when you’re behind the wheel of a car, not identifying a potential financial blind spot can have an expensive and lasting effect on our finances.
Gerard Visser, Financial Planning Consultant at Alexander Forbes Financial Planning Consultants, outlines some of the mistakes people make:
1. Live within your means
Do not compare your life and what you need to be happy to someone else’s, especially when it comes to material objects. Live within your means and have a proper budget. Driving an expensive car is one example - expensive cars not only come with high instalments but also costly short term insurance and credit shortfall cover, which generally increases every year.
2. Budget for unforeseen expenses