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“Generation Earn” author Kimberly Palmer on the common money mistakes people make and why you should avoid them.
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New report out today shows that Americans wealth and rose in the first quarter by more than 4%.
If you want to preserve that wealth and who among us doesn't -- listen up we've got some of the top money mistakes a lot of you -- apparently making.
But also how to fix them we thank Kimberly Palmer for being here she is often -- generation.
-- -- and also a senior editor at US news and world report and Kimberly we love -- a specially -- -- teach us how to improve ourselves and there's a list of twelve but before we get to some of these I would really love to know the big question how difficult that researching to find out what are the biggest mistakes -- people are making.
I basically talked as -- many people as -- talk to me tighten about their money on mistakes they're making what things they wish they did differently.
So that's how I -- what is left OK so let's get to some of them first because I know people are very eager to hear some of them.
What is the number one biggest mistake that people make with their money -- the most I -- the one that's most prevalent.
The biggest is probably depending on one source of income.
These days none of us have job security and not only way to really give yourself yeah financial security.
Is cut looks for multiple ways of earning income and usually the best -- -- that is to leverage the skills that you have so.
Maybe you can build a -- social media business and help.
Small businesses build their own brands on the weekends -- in the evenings -- you can do freelance work so there's hundreds of ways you can build that extra income well you know what this this makes a lot of sense because if people are just -- -- dependent on their weekly or biweekly paycheck it can be -- real problem -- -- always look for that extra out of little -- for your paychecks.
That's exactly -- and where people get into trouble is when they don't have that they suddenly lose their job find themselves out of work and then they can really experienced big trauma.
OK number two trying to beat the markets will who among us doesn't want to -- the markets.
Great we all want dividends -- -- it basically impossible even European debt so really the most successful investors are the ones that don't try to beat the market instead.
They have their balance diversified portfolio they check in four times a year on a quarterly basis or so.
Make sure that they're reaching their target for their diversified portfolio but they're not constantly changing constantly reacting to the market OK let me just quickly -- argue a -- -- dollar cost averaging -- taking a fixed amount of money every month and putting it into the markets.
Absolutely I do that myself I think it's a great strategy -- number three paying too close attention.
To just thirty stocks that would be the Dow Jones industrials you know I'm always trying to say let's get to the S&P 500 has 500 stocks -- is a broader sense of what's really going on.
That's right with the Dow we hear about -- all at times so it's almost impossible not to become somewhat focused and to let yourself.
How some anxiety when you see it gyrating so much going up and down.
But really like you said it's just one number represents a relatively small sector so if you can just step back in the -- the bigger picture it can help relieve some of that anxiety here's another one too many of us apparently are over estimating our tax bills.
We end up getting stuck with a big tax bracket -- here the reason most common that happened in the I was the last -- I'm sorry under estimating.
Under as many and then over paying at the end of the -- -- we do.
When we do aren't actually -- come we don't often pay taxes on the income when a small clients are paying us or picking up -- -- And so then we're stuck in surprise that they huge spell at the end of the year so really if you can estimate your taxes in advance pay as you go you can avoid that big surprise.
-- Kimberly great advice but guess what there are a whole bunch more and if you want to know what else Kimberly thinks you're doing wrong with your money mistakes.
Visit our FaceBook page we put them up on their FaceBook dot com slash after the bell.
Kimberly Palmer is the author of generation.
Earn check it out we -- wanna get -- smarter about your money thank you Kimberly.
Thank you as --
