Are You Losing Money? Check These Financial Red Flags
Mid-year is an ideal time for a financial check-in. And while it’s beneficial to focus on the big picture – like investment returns or market updates – there’s something else quietly working against your financial success: wealth leaks.
We’re talking about the small, sneaky ways your wealth can slip through the cracks. It’s not always sudden or dramatic, like a market downturn. Often, it’s subtle, such as paying for services you don’t use or failing to integrate your tax and wealth planning. Unfortunately, these small “leaks” can add up to financially significant missed opportunities over time.
Where could you be losing money?
A wealth leak can be any area where your money isn't working as hard (or as smart) as it could be. Examples include:
- An investment fund with high fees and poor ROI
- A tax strategy that doesn’t match your income or goals
- An outdated trust
If you're serious about creating and preserving wealth, addressing problems like these is one of the most valuable things you can do.
Are you overlooking these common financial red flags?
Let’s take a closer look at where these financial gaps tend to show up.
1. You might be overspending even if you don’t realize it.
When income is steady, it's easy to let the small stuff slide. But recurring costs can creep up fast (think streaming services, premium credit cards, and subscriptions you forgot about). Over time, that adds up.
Ask yourself if you know how much you spend each month, and see if there are any expenses you could easily eliminate.
2. Your portfolio may not be working in your favor.
Maybe you took a DIY “set it and forget it” approach to your portfolio. Or perhaps you have accounts with multiple firms. That lack of coordination can quietly cost you, especially if you have overlapping funds that do the same job, or a portfolio that is no longer aligned with your goals or risk tolerance.
3. You may need to review your tax strategy.
At Chatterton & Associates, we provide year-round tax planning services. You may want to review your tax planning strategy with your tax professional to ensure it is up to date. Otherwise, you could be missing out on Roth conversion opportunities, tax-smart giving strategies, and more.
If you’re worried about losing money
You don’t need to fix everything overnight. Spotting and stopping financial red flags with a little time and intention can save you a lot of money (and stress) down the road. This becomes especially important when you’re addressing significant life changes, such as retirement, business exit planning, or inheriting assets.
If you think you might have money leaks (and most people do), the team at Chatterton & Associates can help you identify and address them. Contact us today to discuss what’s working, what’s not, and how you could improve your financial plan.
Sincerely,
The Team at Chatterton & Associates
