National Rubber Eraser Day

April 15, 2021

For some reason, we always enjoy hearing what weird/random day it is and how and why we celebrate it. Today, April 15, is National Rubber Eraser Day. That’s right, there is an entire day dedicated to celebrating, recognizing, and appreciating a rubber eraser. On April 15th in 1770, Joseph Priestly used vegetable gum to remove marks from paper. He named the invention “rubber.” Before the eraser, it was common practice to use crustless bread to fix mistakes. Afterall, we all make mistakes and these little pieces of rubber do a great job of helping us fix our blunders.

Financial mistakes, however, are not as easily scrubbed away. That’s why it’s so important to have a financial planner and to make educated choices about your money. If you’re here reading this now, you’re probably pretty savvy with your finances, but some financial faux pas can be pretty subtle. Let’s take a look at some of the most common financial mistakes that we see.

Everyone knows that overspending and racking up credit card debt is not good a plan. Unfortunately, it can happen to the best of us and is usually very gradual. It might not seem like a big deal to stop for that triple-shot latte, to pick up the tab at lunch, and to continue to pay those monthly subscriptions in the app store. After all, they’re so small they can barely make a difference, right? Unfortunately, it all adds up. Just $25/week adds up to $1300 in a year. I’m sure you can think of a few things you would like to do with an extra 1300 dollars.

According to cnbc.com, the average American carries over $6,000 in credit card debt. Using credit cards can have its share of pros and cons, but if you don’t pay off your new debt on a monthly basis, you could be paying double-digit interest rates. Interest rates make the cost of your purchases significantly more expensive. If gasoline is currently $2.69/gallon and you have a 20-gallon tank, you’re paying roughly $53.80 every time you fill up. Using a card with an almost unheard-of low rate of 10% can increase the amount you pay to $2.96/gallon. According to creditcards.com the average minimum APR is 16.15%, bringing the price you pay toward gas prices to a whopping $3.12/gallon when purchased on credit.

Paying off debt can be tricky as well. It’s not enough to just make a monthly payment, especially the minimum payment. Creating and following a plan is the best way to improve your credit score and make strides in the right direction. Your credit score can be impacted by outstanding debt as well as your debt-to-income ratio. Having a high credit score will help keep your interest rates low and prove your worthiness when borrowing money or renting a home.

If you’ve been able to avoid or overcome debt, congratulations! The truth is most of us are not so lucky. A financial advisor’s role is much like an eraser. While we can’t magically remove or fix previous financial mistakes and misfortunes, we are dedicated to helping you work towards your financial goals. We can help you get back on your feet and/or create a plan so you can move from where you are, to where you want to be. If you’re serious about reducing debt and moving toward your goals we have solutions. Call today to schedule a complimentary, no obligation consultation to see how we can help you! (605)731-9121.

 

This is meant for educational purposes only.  It should not be considered investment advice, nor does it constitute a recommendation to take a particular course of action. Please consult with a financial professional regarding your personal situation prior to making any financial related decisions.  (04/21)