5 of the most common Mistakes people make during a Recession

At the turn of every new year, most people make a new year resolution. For the most part however they are really saying "out
with the old and in with the new." But when it comes to planning financial, we can not help but wonder what do we need to do
differently now that the so call recession is going on. With the economy struggling to regain its stability, financial advisors
are encouraging people to take a better stand on new ways of thinking about finances. This in turn could maybe save the
average individual and family hundreds if not thousands of dollars for the upcoming new year. The five most common mistakes
people have made during this economic recession is as follow:

1. Fail to create an Automatic saving plan

Most people that have jobs with a 401k plan have fail to really see the need to increase this amount as much as possible. I
know that you may say that the average person can't afford to increase this because of the hard times, but the truth is
one can't afford not to. When money is already going toward a savings it is only natural to slowly increase this amount as the
cost of living increase. Failure to do this can result in a much less amount toward the future. The rule of thumb is to at least
have four to seven months of income saved for hard times. But because of the recession, ten to twelve months of income need to be saved.

2. Failure to Review their spendings

Most don't have budgets, so when everything went south, so to speak, trouble came. Creating a budget, to most sounds very strict, but
the truth is a budget doesn't mean you have to give up everything. A spending plan will give you more leverage on what you
really have control of. This is easy to follow and it will put you in the right mind set of planning. First you must figure out
what you are trying to accomplish and how soon. But pay attention, because it is very easy to get offline. Every now and
then adjustments will have to be made.

3. Fail to hire an advisor

One must not think that advisors are just for the rich and famous. You don't have to be wealthy to get financial advise.
Sit down with you banker and or financial advisor to make a plan. Check to see if there are free financial classes being
giving by a non profit organization. Also talk with your tax advisor concerning tax breaks and so forth. But if theses don't
work and you must hire an advisor, make sure you know the fees upfront, some are even for hire by the hour. I mention an
advisor because they can turn your situation in your favor.

4. Fail to Review Investments

Many that have investment opportunities on their job fail to see this matter seriously. They just put the money in a stock
that their friends or family member have, never to check on it again until it become the talk of the office or time to
review the obtions again. Many have lost thousands of dollars because of this failure or for lack of a better word laziness.
Generally speaking, one must decide how much money should be in stocks and how much needs to be in bonds. Failing
to follow Diversification.

5. Failure to check current Interest rates and Sales

Failure to check credit card, mortgage, and auto rates can have you paying in some cases 5k to 8k more by the maturity period.
A percentage or 2 on mortgage can have you saving thousands of dollars. Even finding deals with phone service and cable can
save you hundreds of dollars a year. Also if the value of your home has dropped you may not need as much coverage. Shop only
when sales are on and be smart at the grocery store. Three or four hundred dollars in savings a year on most items can really
add up fast.

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