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There are all sorts of reasons why these goals whether theyre officially part of your resolutions or not fail.
Sometimes, theyre too lofty or complicated.
Other times, theres simply notenough personal accountabilityto keep going.
Whatever the case, setting financial goals is great and failing to fulfill them can be costly.
These are some commonly unfulfilled financial goals people set each New Year and examples ofwhat they can costif abandoned.
This includes all sorts of debt mortgages, credit cards, auto loans, student loans and more.
Take credit cards as an example.
Theaverage credit card balancein 2023 was $6,501.
The typical APR was 22.8%.
Thats $1,475 in interest charges each year, assuming no changes to the balance.
The Cost of Not Budgeting
Creating a budget is one thing; sticking with it is another.
Part of budgeting means setting financial goals with a clear why behind them.
These goals should also include the means to achieve them.
Say you want to save a certain amount of money each month.
Youll need a goal and youll need a budget.
And that can lead to overspending.
[Every day], people are faced with the convenience and easy access to consumption of life.
Or they could include different things.
The Cost of Not Investing
Speaking of, many people plan to invest but never do.
Or they wait a long time before getting started.
But this can result in the loss of some serious financial gains.
One more year at 7%, and itll grow by $8.01 up to $122.50.
On the other hand, not investing that money means losing that growth potential.
Hubbard did point out that this is only an example, as the market changes every year.
It might be higher in some years or lower in others.
The Cost of Not Diversifying
Portfolio diversification is an effective way to minimize risk and maximize returns.
For example, somebody might be only investing in a single stock.
Say you invest $5,000 in a single stock and the company goes bankrupt.
You fire off the risk of losing all or most of that investment.
The other $4,000 could theoretically bring in regular returns and eventually make up for the loss.
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