Money Mistakes And How To Avoid Them
Richard Massaux - Managing Director of Investment
Wells Fargo Advisors - Philadelphia
https://home.wellsfargoadvisors.com/richard.j.massaux
Top 10 money mistakes made by men and women before age 30 - and what you can do if you've already made them:
1. Investing isn't just for the rich! Most spend more time planning a vacation that they do for their financial future. Many under the age of 30 think they are too young to establish a financial plan but this is the perfect time to plan for future financial goals and challenges: buying a home, children's education and retirement. Establishing and understanding the steps necessary to move forward with a plan is crucial to financial independence.
2. Contribute to your company's 401K savings - and make the biggest contribution possible. Most people contribute only the necessary amount needed for employer matching, which is a huge money mistake.
3. Check your credit report annually so if there are any issues, you can have it corrected promptly and save yourself from years of damage to your credit.
4. Learn how to budget to get a better handle on actual discretionary spending. Many before the age of 30 spend more than they're earning as consistent income and cash flow is often misjudged and overspent.
5. Build an emergency fund immediately! It's never too late to get started as an unexpected expense can come up at any time. Always be sure to have at least 6-months of necessary expenses set aside for a "rainy day."
6. Avoid credit card debt. It's very hard to overcome due to compounding high interest rates.
7. Understand the power of inflation on expenses. Expenses increase with lifestyle changes. Offset this by increasing the money set aside for investments.
8. Complacency in a first job. Not fully grasping the urgency to advance in their jobs to keep pace with their evolving lives, many under the age of 30- need to be sure work as diligently as possible, longer, and consider additional education in their field.
9. Rushing to purchase a home when it's unaffordable.
10. Borrowing money for a wedding. A wedding could be one of the biggest single expenses in life after buying a home and sending a child to college. This is usually something looked back on as a regret when too much money is spent.
