We all make mistakes in life. But some mistakes may end up costing us dearly in the future, quite literally. Here is a list of common financial mistakes young people make that you might want to avoid in your life:
Not Planning for Retirement
Retirement may be far from your mind as you enter a career in your twenties and early thirties. If you currently don’t have a plan for retirement, you may be making a huge financial mistake. According to research, a vast majority of people in their twenties are eligible to make 401(k) contributions but don’t actually do so. The result is a lack of solid retirement planning that could cost them dearly later on. Obviously, young people may have a more pressing need for money, such as to buy a house or car, to actually saving up for retirement. Think of your retirement plan as being just as important as buying a starter home. The problem is, the longer you wait to start saving for retirement, the less time the compounding factor has to kick in and make your contributions lucrative. Also, the longer you wait, the more money you will have to save when you are older, to have enough funds to retire comfortably when the time comes. [Read more…] about These Financial Mistakes Could Cost You in the Future