4 Myths Feeding Your Financial Fears

Spooky season is upon us! The time of the year when candy corn is a plenty and skeleton and spider decorations seem commonplace. While we like a healthy dose of spooky as much as the next person, one place we don’t want to see it is in our finances. We’re here to help you tackle some of the most common financial fears.


#1 – Your debt is haunting you.
More than 75% of American households have some type of debt. While the mention of debt may make your palms sweat, it’s a necessary piece of your finances. Auto loans and mortgages are examples of good debt, usually with a lower rate. Having a plan to pay down your debt, especially high-rate debt like credit cards (keep reading for more on that!), can make it work positively for you.


#2 –Creating a budget is bone-chilling.
The first step to owning your finances is having a budget and it’s getting easier! If you’re just getting started, we recommend including your monthly income and expenses like bills (don’t forget annual costs like insurance!), food, transportation, pet/childcare, and entertainment. Keep yourself honest by tracking your budget in a tool like Money Management. You can even break your categories down into sub-budgets!


#3 –Credit cards are creepy.
When used appropriately, we think credit cards can be beneficial. Many credit cards offer points or cash back. Instead of using your debit card or cash on essentials like groceries, use a credit card with rewards to get paid for your spending. Use the rewards for your next vacation or to cover holiday gifts. The best plan is to spend only what you know you can pay off at the end of the month!


#4 –Saving and investing is spooky.
Whether you’re saving for retirement, your first home, or your child’s college, knowing which account to choose can seem daunting. Our recommendation, a little guidance can go a long way. The Black Hills Investment Services team is ready to partner with you to guide you toward your financial dreams.