When it comes to personal finance there are three major mistakes that people often make. Here they are:
1. Not putting money away for retirement: Time passes so fast. It seems that you graduated high school the day before yesterday, found a job yesterday and tomorrow you are ready to retire. I know, I know, it isn’t that extreme, but the reality is retirement comes on quick. Because of this it is important to begin to put some money away on a regular basis for retirement. Make it a priority today to begin putting money away for your retirement. You don’t want to be 60-years-old and find out you will need to work another 20 years to secure enough money for retirement—start today!
2. Not having enough or the proper insurance: There are several insurances a person should consider, in my opinion. Health insurance, life insurance, long-term care insurance are all highly recommended. In addition to those insurances, you should also consider obtaining general liability insurance to protect your business if you are a business owner.
The previously mentioned insurances are design to protect you and your assets in the case of calamity. Speak with your financial adviser about your specific insurance needs, as this article is intended only to lay a foundation.
3. Not having a proper emergency fund: An emergency fund is very important to have. If you don’t have one, I will share some tips on how to set one up in my next article. Life brings some unexpected obstacles that must be handled immediately: Medical emergencies that your insurance doesn’t completely cover, unexpected repairs needed for your home or vehicle, emergency travel expenses, and job loss are just a few. Whatever the issue is, it is important to have an emergency fund, not a credit card, but an actual emergency fund. The fund should have a minimum of three months worth of cash for all of your expenses.
Each of these three are important. I haven’t place them in any order of preference because I think they should all be considered a priority. Ok, let’s get to it!