We have all seen it. The rich and famous who boast luxury cars, and lavish homes, then, in what seems like the next day, they are M.C. Hammer broke.
How does one go through so much money, so quickly?
Tom Sirois of Berkshire Hills Financial will analyze their spending habits so you don’t make the same mistakes they did when you live the lifestyle of the rich and famous.
- Overestimating the market values of real estate.
The housing market is often not what it seems, and when the next big artist purchases 3 or more homes, overextending their credit or bank account, the market can fluctuate, further hurting the finances of the owner.
- Buying depreciating assets.
Boats, planes, cars. All of these items decrease in value every year, and even faster with use. You may as well be throwing nominal amounts of money down the toilet.
- Blindly investing in new technology.
Wanting to be the next Chris Sacca, artists and actors alike are guilty of blindly investing in quick-to-fizzle-out technology trends. When is the first or last time that you have used Google Glass?
- Taking investment advice from friends.
It’s kind of like taking dating advice from friends. Don’t do it.
- Investing in restaurants.
According to the National Restaurant Association, it’s one of the most risky investments. The United States sees around 60,000 new restaurants each year, with 50,000 closures. That’s around an 83 percent failure rate if you are keeping up.
- Selling stocks too quickly when they drop.
Just wait it out, markets fluctuate and next year you more often that not would see an exponential increase on your investment.
- Overestimating future earnings.
You have a prime of your life for a reason. Put some money back to rely on it after your fame and fortune fizzles out like a distant supernova.
It’s April. The birds are singing, flowers are blooming, and you are banking on that big tax return to take your family on that vacation you have been dreaming of all year.
Maybe travel isn’t your thing, and you prefer possessions such as flat screen t.v.’s and the latest shoe craze?
In this post, we will show you how to invest your tax return and make it work for you.
We all know that debt is a huge deal in America. So many of us are plagued with high interest credit card bills. Want to improve your score, please your significant other, and be able to borrow more money should the need arise in the future? Use that hefty refund to pay off a few of those high interest credit cards and breathe a sigh of debt-free relief.
Tragedy hits people every day when they least expect it. Most people do not have a nest egg to rely on when tragedy strikes. What if you take at least a small portion of that refund, and tuck it away in an interest bearing account for any misfortune that could come your way? Having a few extra dollars put back when that transmission goes bad could save you in the long run.
Politics are all over the place right now, and the future of retirement seems to get more and more diminished every year. A large majority of elderly people are still working past the age of 65, and some, with multiple jobs. You worked all your life, but do you have anything to show for it? Putting back some money for retirement now, could pay off big in the future, as you finally get some time to relax with your family and enjoy the life you worked so hard to build.
Do you rent your home? Do you want to rent forever or would you rather bask in the glory of owning your own house for a fraction of what you would rent it for? Investing in the real estate market could pay off big in the future, and, if house buying is something you enjoy, the market of “flipping houses” has never been better. Invest your refund in a home and enjoy peace of mind.
Investing your refund may seem hard once you have it in your hand, but it could pay you off three-fold in the long run.